In exercise of the powers conferred by section 3A of the Government Savings Promotion Act, 18

## Report on the Post Office Savings Account Amendment Scheme, 2021 **1. Executive Summary:** This report analyzes the Post Office Savings Account Amendment Scheme, 2021, as detailed in the provided government notification. This scheme amends the Post Office Savings Account Scheme, 2019, primarily by introducing provisions for a "Basic Savings Account" specifically targeted at beneficiaries of government welfare schemes, including guardians of minors registered for such schemes. The amendment also reduces the minimum balance requirement for existing Post Office Savings Accounts. The key finding is that the amendment aims to broaden financial inclusion by facilitating access to savings accounts for vulnerable populations receiving government benefits. **2. Introduction:** This report aims to provide a comprehensive overview of the Post Office Savings Account Amendment Scheme, 2021, based solely on the information contained within the provided government notification. The report will detail the changes introduced by this amendment and their potential implications. **3. Policy Overview:** * This document constitutes an amendment to the Post Office Savings Account Scheme, 2019. * The core objective, as inferred from the provided text, is to expand access to savings accounts, particularly for individuals receiving government welfare benefits, including guardians of minor beneficiaries. **4. Background and Rationale:** This amendment addresses the need to facilitate access to formal banking services for beneficiaries of government welfare schemes. The introduction of a "Basic Savings Account" with specific provisions for this demographic suggests a desire to overcome barriers that might prevent them from participating in traditional savings schemes. The reduction of the minimum balance requirement for existing accounts likely seeks to reduce the burden on account holders and prevent accounts from becoming inactive due to insufficient funds. **5. Key Provisions / Changes:** The Post Office Savings Account Amendment Scheme, 2021, introduces the following key changes: * **Addition of Basic Savings Account:** A new type of account, the "Basic Savings Account," is introduced specifically for beneficiaries of government welfare schemes and guardians of minor beneficiaries registered under such schemes. This is achieved by inserting a new subparagraph (3) after subparagraph (2) in paragraph 3 of the original scheme. * **Terms of the Basic Savings Account:** The amendment specifies the terms for opening and operating this Basic Savings Account in a table. Key aspects include: * **Eligibility:** Registered government welfare scheme beneficiaries and guardians of minor registered government welfare scheme beneficiaries. * **Minimum Deposit Required to Open Account:** Nil. * **Number of Deposits that can be made:** One. * **Minimum Balance to be maintained in the account:** Nil. * **Minimum Balance Reduction:** The amendment modifies paragraph 4, subparagraph 6 of the original scheme, substituting "one hundred rupees" with "fifty rupees inclusive of Goods and Services Tax" as the minimum balance requirement. * **Difference/Effect:** This reduces the minimum balance required for regular Post Office Savings Accounts from ₹100 to ₹50 (inclusive of GST), potentially encouraging more people to maintain active accounts. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders directly affected by this amendment are: * Beneficiaries of government welfare schemes. * Guardians of minor beneficiaries of government welfare schemes. * Existing Post Office Savings Account holders. * The Department of Posts, which manages the Post Office Savings Account Scheme. **7. Implementation Aspects (Inferred):** * **Responsible agency:** The Department of Economic Affairs, Ministry of Finance, is responsible for implementing this amendment. * **Timelines:** The amendment came into force on April 9, 2021, the date of its publication in the Official Gazette. * **Procedures:** While specific procedures are not detailed in the text, it can be inferred that the Department of Posts will need to update its account opening and maintenance procedures to accommodate the Basic Savings Account and the reduced minimum balance. This includes informing staff and updating relevant documentation. **8. Expected Outcomes / Impact of Changes:** The expected outcomes of these specific changes are: * **Increased Financial Inclusion:** The Basic Savings Account aims to improve financial inclusion among vulnerable populations by providing easier access to a savings account. * **Reduced Account Dormancy:** The reduction in the minimum balance for regular Post Office Savings Accounts may help prevent accounts from becoming dormant due to insufficient funds. * **Increased Participation in Government Schemes:** Easier access to savings accounts might encourage more people to enroll in government welfare schemes. **9. Conclusion:** The Post Office Savings Account Amendment Scheme, 2021, represents a targeted effort to enhance financial inclusion for beneficiaries of government welfare schemes and to ease the burden on existing account holders. By introducing the Basic Savings Account and reducing the minimum balance requirement, the amendment is expected to broaden access to savings services and promote greater participation in the formal financial system.

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