In our previous post, we explored key measures to prevent fraud in Recurring Deposit (RD) accounts through random verifications and communication with depositors. But as fraud schemes evolve, so must our defenses. That’s why the Post Office Savings Bank (POSB) is stepping up with a series of enhanced security measures designed to protect account holders, particularly in single-handed and double-handed post offices.
In this article, we’ll take a closer look at these new guidelines—covering mandatory mobile and PAN linkage, high-value transaction monitoring, and advanced systems integration—all aimed at ensuring depositor funds remain secure.
In recent times, several fraud cases involving Post Office Savings Bank (POSB) accounts have been detected. To combat this growing issue, the Vigilance Division has taken proactive steps to enhance security and prevent misappropriation, especially in single-handed and double-handed post offices. The following are the key measures that have been put in place:
1. Linking of Mobile Numbers and PANs
- Mandatory Mobile Number Linkage: Since SB Order No. 17/2017, it has been mandatory to link mobile numbers when opening new accounts. To ensure full compliance, a special drive will be launched to link mobile numbers and PANs to all existing accounts. This will be publicized via print and electronic media, ensuring all account holders are aware.
- Consequences for Non-Compliance: As per Rule 6(b) of the Government Savings Promotion General Rules 2018, if an account holder fails to provide their PAN within six months of opening their account, the account will be frozen until the PAN is provided.
2. Transaction Monitoring
- Mobile and PAN Checks for High-Value Transactions: Moving forward, all CBS post offices will require verification of mobile numbers for transactions of ₹20,000 and above, and PAN numbers for transactions of ₹50,000 and above. This will involve:
- Menu CICD Check: Before initiating any transaction, postal employees will check whether mobile and PAN details are updated.
- Voucher Updates: If the details are missing, customers must provide them on the transaction voucher (SB-103/SB-7 forms), after which the information will be updated in the system.
- Non-CBS Post Offices: For non-CBS post offices, the process will be similar, with mandatory collection of mobile numbers for transactions above ₹20,000 and PAN numbers for those above ₹50,000.
3. Collection of Passbooks for Closed Accounts
- Closure and Premature Closure of TDA Accounts: In single and double-handed post offices, closed passbooks for Recurring Deposit (RD), Time Deposit (TD), Monthly Income Scheme (MIS), Senior Citizens Savings Scheme (SCSS), Kisan Vikas Patra (KVP), and National Savings Certificates (NSC) accounts must be collected and marked with a closure stamp after the last transaction.
- Account Closure Report: Upon closure, an account closure report must be generated and provided to the customer as acknowledgment.
4. System Integration for Better Fraud Detection
- Several technological integrations have been made, including:
- SMS Alerts, GL Integration, Common Long Book, and CBS-CTS Integration: These provide real-time updates and cross-verifications to reduce fraud.
- Weekly Reporting: CEPT Chennai will generate weekly reports on changes to account holder details, failed SMS alerts, and high-value transactions without updated mobile or PAN details. These will be circulated to respective divisions for review and action.
5. Disciplinary Action for Non-Compliance
- If any discrepancies or failure to follow the procedures are found during inspections or through public complaints, disciplinary actions will be taken against the responsible officials.
For those interested in the official details, these new measures came into effect under DOP OM F. No. FS-09/1/2021-FS-DOP, SB Order No. 01/2022, which we’ve already covered in a separate blog post. Be sure to check it out for the full scope of these important changes.