The account shall be opened with a minimum deposit of one thousand rupees or any sum in multiple of one thousand rupees not exceeding Rupees Fifteen lakhs.
The depositor may extend the account for a further period of three years after the maturity period of five years.
The deposit made under these rules shall bear interest as directed by Govt of India from time to time quarterly.
If the interest payable every quarter is not claimed by an account holder, such interest shall not earn additional interest.
The whole amount of deposit in a joint account shall be attributable to the first account holder only.
Both the spouses can open single account and joint accounts with each other.
The depositor may nominate a person or more than one person.
Nomination made by the depositor can be cancelled or varied.
The deposit made at the time of opening of the account shall be paid on or after the expiry of five years or after the expiry of eight years where the account was extended from the date of the opening of the account.
Multiple withdrawals from an account shall not be permitted.
An individual may open an account in individual capacity, or jointly with spouse.
NRI's & Hindu Undivided Family are not eligible to open an account under these rules.
An individual who has attained the age of 60 years and above.
who has attained the age of 55 years or more but less than 60 years and who has retired on superannuation or otherwise on the date of opening an account.
The retired personnel of Defence Services attaining the age of fifty years.
Premature closure of Account
Premature Payment Permitted at any time after opening the account but with penalty.