The Union government has doubled the deposit limit of the the Post Office Monthly Income Scheme (POMIS) in the Budget 2023. Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget for 2023-24, said that the new limit for the popular scheme will be Rs 9 lakh, up from the current Rs 4.5 lakh, for individual account holders. The new limit for the joint account holders will be Rs 15 lakh from the current Rs 9 lakh.
What is POMIS?
This is among the most popular schemes for investors as it is considered low-risk. While the account is active, investors will receive a monthly sum in the form of interest. The interest rate is set by the government on a regular basis — the current rate of interest stands at 7.1 percent.
How to open an account?
One can open a monthly income scheme account by visiting a post office and filling out a common opening form. Those interested in opening an account must also submit Know Your Customer (KYC) documents like photographs, proof of identity and proof, as well as the initial contribution cheque.
The monthly savings scheme account is valid for for five years from the date of opening and cannot be closed in the interim without attracting a penalty.
If the account is closed a year from opening but before three years, 2 percent of the principal will be deducted from the deposit. If the account if closed between three and five years of opening, a one percent penalty will be charged.
