Steps to be taken for smooth functioning of POSB operations and prevention of frauds in post offices

Steps to be taken for smooth functioning of POSB operations and prevention of frauds in post offices: DOP Order dated 13.01.2022

SB Order No. 01 /2022

F. No. FS-09/1/2021-FS-DOP
Government of India
Ministry of Communications
Department of Posts
(Financial Services Division)

Dak Bhawan, New Delhi-110001
Dated: 13.01.2022

To,
All Head of Circles/Regions

Subject: Steps to be taken for smooth functioning of POSB operations and prevention of frauds in post offices.

Sir/Madam,

POSB related fraud cases have been noticed recently. Vigilance Division has desired to provide extra checks in the system to minimize/eliminate chances of misappropriation/frauds, particularly in respect of transactions carried out in single handed and double handed post offices.

2. It is reiterated that the linking of mobile number of account holder was made MANDATORY vide SB Order No. 17/2017 dated 23.10.2017 for opening of any new account. Steps to be taken for linking of mobile number in all existing account were also prescribed.

Circle should take necessary steps for linking of mobile number/PAN of all active accounts. For the purpose, a special drive should be launched and wide publicity may be made through print/electronic media/pamphlets, handbills etc. for the account holders to get their mobile numbers linked/seeded with their respective accounts.

3. Also, it is prescribed in Rule 6(b) of Government Savings Promotion General Rules 2018 that , “if an individual does not submit the Permanent Account Number at the time of opening an account, he shall submit the same to the Accounts Office within a period of six months from the date of the opening of the account and if a depositor who has already opened an account prior to the date of this notification and has not already submitted his Permanent Account Number to the Accounts Office, he shall do so within a period of six months from the date of this notification and in the event of the failure of the depositor to submit the Permanent Account Number within the specified period of six months, his account shall cease to be operational till the time he submits the Permanent Account Number to the Accounts Office”.

4. Many steps have already been taken to provide better facilities/services and reduce chances of any misappropriation/frauds i.e. GL Integration, Common long book, SMS alerts, eBanking/mBanking, IVR facility, CBS-CTS integration.

5. In order to secure of hard-earned money of the depositors, better control, smooth POSB operations, prevention of money laundering activities and as a preventive measure to curb fraud, the competent authority has decided to issue the following guidelines with immediate effect:

(A) Linking of mobile number/PAN for financial transaction carried out in all post offices.

(i) Henceforth, if any transaction (Deposit/Withdrawal/Loan Disbursement/Loan Repayment/Closure of account (either premature or on maturity)) carried out in any CBS post office;

a) Rs. 20,000 and above, mobile number must be checked and if necessary, updated before initiating the transaction.

b) Rs. 50,000 and above, PAN must be checked and if necessary, updated before initiating the transaction.

(ii) For the purpose, before initiating any transaction of Rs. 20,000 and above, counter PA shall invoke menu CICD and check, whether mobile number/PAN are updated in respective account or not.

(iii) If mobile number/PAN are not updated/available in account, in which transaction 1s to be done, mobile number and PAN should be obtained by the counter PA on the voucher (1.e., SB-103/SB-7/7A/7B/7C) from the account holder/authorized person.

Note: – 1. If the account is not KYC compliant, the KYC document shall also be obtained from the account holder/guardian as prescribed in the rules.

2. If account holder does not have PAN number, Form 60/61 prescribed under Income Tax Act may be obtained.

(iv) Thereafter, counter PA shall ensure to update mobile number and PAN in the CIF of the customer by invoking CMRC menu and the same should be verified by the supervisor without fail.

(v) In case, mobile number of a depositor is required to be changed, a separate written application may be obtained from such depositor. On verification of signature of the depositor, the mobile number shall be updated by invoking CMRC menu by the counter PA and verified by the supervisor. This application should be attached with the Account Opening Form (AOF) and KYC document of the respective account.

(vi) After updation of mobile number and PAN in Finacle for respective account, the transaction should be performed as per prescribed procedure.

(vii) Non-CBS post offices shall also obtain mobile number for transaction above Rs. 20,000 and PAN number for transaction above Rs. 50,000 and the same shall also be written on voucher by the account holder.

Note: – At any time during visit/inspection, data analyzing, public complaints etc, if it is noticed that incorrect/wrong mobile number/PAN was updated or mobile number/PAN was not updated by the counter PA/Supervisor concerned as prescribed above, stern action should be taken against the erring official by the disciplinary authority concerned.

(B). Collection of passbooks at the time of closure/premature closure of any TDA type accounts (RD/TD/MIS/SCSS/KVP_& NSC) in single and double handed post offices.

(i) At the time of closure/premature closure of any TDA type of accounts (RD/TD/MIS/SCSS/KVP and NSC), all single and double handed post offices (including BOs) shall collect closed passbook from the account holders. The closure entry is to be noted after last transaction in the passbook by the post office concerned with date stamp.

(ii) After verification of closure of account in Finacle, supervisor shall generate and print “account closure report” by invoking HPR menu and handover to account holder as acknowledgement. If any depositor demand account statement it may also be provided in lieu of passbook without any charges.

(iii) After closure of account, passbooks of closed TDA category accounts shall be attached with the Account Closure Form and send in a manner as prescribed for dispatch of vouchers and Long Book Consolidation Journal.

(iv) The number of closed passbooks attached should be mentioned in the ‘Long Book Consolidation Report-BRN (Today)” or consolidation journal by the postmaster concerned.

(v) In SBCO, designated SBCO PA shall also tally the account number and amount 1n the closed passbooks received with the closure voucher concerned from the single handed and double handed post office and will write “Received all closed passbooks for TDA type of accounts” on Long Book consolidation report-BRN received with voucher bundle

(vi) Incase any discrepancy 1s noticed, In-charge, SBCO shall report the matter to the Divisional Head/Gazetted Postmaster concerned.

(C) Role of CEPT, Chennai.

(i) CEPT, Chennai will generate the following reports Circle-wise on weekly basis.

a) CIF merger report.

b) CIF modification report where name of account holder and mobile number changed.

c) SMS failure report 1.e., invalid mobile number.

d) Transaction done during the week with Rs. 20,000 and more but mobile number not updated, likewise transaction done during the week with Rs.50,000 and more but PAN not updated.

(ii) CEPT, Chennai will share above weekly reports to CPC (CBS) of the Circles.

(D) Role of CPC (CBS)

(i) After receipt of above reports/link from CEPT, In-charge, CPC (CBS) shall bifurcate above reports Division wise for their Circle.

(ii) In-charge, CPC (CBS) will share above reports to respective Divisional head through official email id.

(E) Role of Divisional Office

(i) Divisional Head will provide list of single and double handed post offices under a HO to SBCO concerned.

(ii) Prompt action should be taken as and when any report 1s received from Postmaster or Incharge, SBCO.

(iii) At divisional level, after receipt of reports as specified in para (C) (1) above, these reports should be examined.

(iv) In case of any discrepancy, suspicious activity noticed after examining above reports, necessary action should be taken immediately to avoid any chances of misappropriation/fraud.

6. It is requested to circulate it to all concerned for information, guidance and necessary action. Same may also be placed on the notice board of all Post Offices in public area.

7. This is issued with the approval of the Director General Postal Services.

Yours Sincerely
(Devendra Sharma)
Assistant Director (SB-ID)

Source: DOP