Finance Minister Nirmala announced on Feb 1, 2023 during her Union Budget speech about the increased maximum deposit limit of Post Office Monthly Income Scheme (POMIS).  The maximum deposit limit in this Government of India (GoI)-backed small savings scheme was increased from Rs4.5 lakh to Rs9 lakh for a single account holder and from Rs9 lakh to Rs15 lakh for joint account holders.

 

Following the increase in the maximum deposit limit from Rs4.5 lakh to Rs9 lakh, the minimum amount required to create a Post Office Monthly Income Scheme (POMIS) account would remain at Rs1000. Similarly, all joint account holders will have an equal share of the total deposited money in a joint account. 

 

As per the information available on India Post's official website, “Interest shall be payable on completion of a month from the date of opening and so on till maturity." However, if the account holder does not claim the monthly interest payable in the POMIS, such POMIS interest will not generate any additional interest. 

 

Premature withdrawal is allowed in this small savings scheme, but only after one year of account opening. 

 

The department of post website claimed that if an account is closed after 1 year and before 3 year from the date of account opening a deduction equal to 2% from the principal will be deducted and remaining amount will be paid. It further added that if account closed after 3 year and before 5 year from the date of account opening a deduction equals to 1% from the principal will be deducted and remaining amount will be paid.