PAN now made Mandatory for Rs.10 Lakh Investments on Post Office Savings Schemes

The Department of Posts has issued a Circular to revised the KYC norms for investing in small savings schemes for investors.

The new KYC standards have been tightened for people doing large-value transactions using post office programmes. Along with the standard KYC papers such as PAN and Aadhaar, verification of source of money is now required (e.g., ITR for the last three years, etc.).

The Circular Stated as, “Master Circular No. 1 on AML/CFT norms applicable for Small Savings Schemes has been circulated in SB Order No.l4D0l2 dated 09.10.2012.”

Department Economic Affairs, Ministry of Finance has notified Govt. Savings Promotion General Rules 2018 (GSPR 2018) and National Savings Schemes Rules 2019 which have been implemented from 18.12.2019. GSPR 2018 prescribes the mandatory documents and other optional documents to be obtained from the depositors.

After implementation of CBS, the process of reporting of transactions has also got changed.

Further, in order to comply with the guidelines of Financial Intelligent Unit – India (FIU-IND) and Financial Action Task Force (FATF), it has been decided to issue revised guidelines on AML/CFT norms to be followed in the post offices in respect of National (Small) Savings Schemes and accordingly, Master Circular No. 2 of KYC / AML / CFT norms is attached herewith. This will supersede all previous orders issued on the subject.

Appendix I of POSB (CBS) Manual (Corrected up to 31.12.2021) is amended and the contents of Master Circular No. 2 which is attached herewith shall be the amended text.

For Official Circular Download PDF Given Below: