Govt gives facelift, revives 27-yr-old savings policy in postal department

Himalayan News Service

Kathmandu, April 1:

The government has introduced the “Postal Saving Bank Operation Policy 2061” to effectively implement the Postal Savings Bank (PSB) scheme. According to the postal service department, Central Money Order Office, the policy has been introduced to reactivate PSB lying dormant for the last 27 years.

The move is part of the internalising of the ‘Banking Discipline’ mentioned in the Royal proclamation of February 1. According to the postal department, the new system launched by the Ministry of Finance will make the banking sector competitive, disciplined, dignified.

According to the new policy, Magh 19 will be celebrated as “Postal Saving Bank Day”.

Till now, the PSB has been providing 5 percent interest rate yearly on savings.

The interest rate will now be made 10 percent for account-holders above 70 years of age and 6 percent for women and children. Special provision has been made for late fee and loans’ recovery. Prizes, felicitations and awards will also be given to the best employees.

Employees in the postal offices were provided loans of up to Rs 25,000 for a two-year period. That duration has been increased to five years and the amount has also been hiked to Rs 50,000. The net of credit flow will be increased for civil servants and local bodies.

The new system says that both the Postal Service which issues the loans and the Office of Civil Personal Record can charge 1 percent as service fee.

A new logo of Postal Saving Bank has also been designed.