India Post has offered its senior citizen investors, who have invested in the Public Provident Fund (PPF) and the Senior Citizens Savings Scheme (SCSS), the option to withdraw funds partially from their account without having to visit any India Post branch.
The investors can send an authorised person on their behalf to collect the funds from the branch. The facility has been launched to provide support to old-age pensioners who are unable to travel to the post offices owing to old-age infirmities.
Here's how to authorise a person to collect the PPF or SCSS funds:
- Fill and sign the SB-12 form. This facility can be used only by literate citizens. In the case of a survivor, he or she can sign the the SB-12 form to authorise the personnel for withdrawal of funds
- Account holders also need to fill and sign the SB-7 form or SB-7B form for the process of partial withdrawal and account closure
- The authorised individual will have to produce a self-attested copies of their identity proof and address proof as well as that of the account holder
- The person will also have to submit a passbook to withdrawal of funds
- India Post officials will process the transactions after matching the signatures of the account holders
Through this facility, the funds will be made available either through cheques or be credited to a bank account or post office savings account of the investor.
Both the PPF and SCSS are popular with investors. The SCSS is a government-backed retirement savings programme that pays interest at an annual rate of 7.4 percent. The scheme comes with a tenure of five years and contributions to the SCSS are eligible for tax deduction up to 1.5 lakh under Section 80C of the Income Tax Act.
The PPF comes with a fixed tenure of 15 years, but partial withdrawals are applicable from the seventh year. The triple tax break of the scheme is a huge draw for investors.