New Post Office account freezing rule for PPF, NSC, SCSS, KVP, TD, RD accounts announced

The Department of Posts has announced a new rule for several small savings scheme accounts that remain unclosed for more than three years after maturity.

As per an order dated July 15, 2025, the Post Office will now identify and freeze these small savings scheme accounts twice a year if they are not formally extended by subscribers and remain unclosed for even three years after the end of the maturity period.

This decision has been taken to increase the security of the hard-earned money of depositors, according to the department.

The small savings scheme accounts on which this new rule will apply are Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Post Office Monthly Income Scheme (MIS), Post Office Time Deposit (TD), and Post Office Recurring Deposit (RD), as per the order.

"To further enhance security of hard-earned money of depositors, it has now been decided that this freezing activity will be conducted twice a year as a continuous cycle," the Department said.

"The process of identification and freezing of such accounts will be completed within 15 days, commencing from 1st July and 1st January of each year. This means accounts that complete three years of maturity as on 30th June and 31st December every year, respectively, will be identified and frozen," it added.

What was the previous rule?

Earlier, the Post Office was identifying and freezing such accounts once a year.

As per SB Order No. 25/2022 dated 16-12-2022, it was decided by the department to "freeze matured accounts under the schemes MlS, SCSS, TD, KVP, NSC, RD, and PPF accounts (that are matured but not extended), which have not been closed even after three years since maturity. The designated freeze reason code for these accounts is 'INOP: lnoperative more than 3 years'."