Small savings scheme maturing? Reinvestment process explained here


To avoid any confusion, India Post in a circular has reiterated the provisions available for re-investment of maturity value of any National (Small) Savings Schemes for opening of new account/purchase of certificate either by account holder directly or through agents

“This office is receiving lot of queries/representations from SAS agents regarding re-investment of maturity value of any of the National Savings Schemes for opening/purchase of new account/certificate,” India Post said in a circular.

For re-investment of full maturity value or part thereof either by account holder directly or through SAS agent, the account/certificate holder has to either maintain or open a new Post Office Savings Account in the post office, India Post said.


Also, the re-investment can be made either for the amount equal to or less amount and up to maturity value credited.

The reinvestment can only be made under same CIF (Customer Information File or customer ID) and in the name of account holder/one of the joint holders/minor under the guardianship of the account holder i.e. The account holder (s) of the matured account shall be the sole account holder or one of the joint account holders or the guardian of the minor / person of unsound mind as the case may be, of the new account opened under reinvestment, India Post said.

Procedure of reinvestment by account holder (Direct Reinvestment), according to India Post


i) If an account holder wants to re-invest the maturity value of his/her National (Small) Savings Scheme either in full or part thereof, he/she shall submit account closure form (SB-7A) for the matured account, passbook and withdrawal form(SB-7) or POSB cheque of his/her Post Office Savings Account at concerned post office. Further he/she shall submit the Account Opening Form (AOF) with pay-in-slip for the new account to be opened.

ii) If he/she has not provided his KYC documents as per provisions available in GSPR-2018 and KYC guidelines issued from time to time, he/she shall also submit updated KYC documents along with above documents.

iii) In acquittance portion of account closure form (SB-7A) or backside of preprinted KVP/NSC, account holder shall write ‘Credit maturity value into my Post Office Savings Account No. ………………” and sign.


iv) In acquittance portion of withdrawal form (SB-7) of Post Office Savings Account or on the backside of POSB cheque, account holder shall write ‘For Reinvestment in ________ scheme in lieu of closed A/c No. ………….. for Rs. ……………… and sign’.

v) The counter PA of post office shall check documents received and if all documents are in order, follow the procedure as prescribed in the rules for closure of an existing account and transfer maturity value into the account holder’s Post Office Savings Account.

vi) Supervisor shall verify the closure of account.


vii) After closure of account, counter PA shall open new account under account holder/minor CIF and during account opening, funding of amount mentioned in withdrawal form(SB-7) or POSB Cheque shall be done from account holder’s Post Office Savings Account.

viii) Supervisor shall verify the new account opening and funding of account.

ix) Counter PA shall provide passbook of the new account opened to the account holder.


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