PPF, RD, KVP, NSC small savings accounts matured for 3 years will be frozen, how will you get the money, know the process
If you invest in small savings schemes of the post office, then there is important news for you. The Postal Department has announced that it will freeze all the small savings scheme accounts which have neither been extended nor closed even after three years from the date of maturity.
New Delhi: The Department of Posts has announced that it will freeze all small savings scheme accounts which have neither been extended nor closed even after three years from the date of maturity. This means that all transactions related to it will be stopped. Account holders will have to submit the necessary documents to the concerned department to restart their accounts.
According to ET, an order dated July 15, 2025 talks about making account freezing a regular process. This process will be done twice a year so that such accounts can be identified and the safety and security of the hard-earned money of the depositors can be ensured. According to the order, these schemes include Time Deposit, Monthly Income Scheme, National Savings Certificate, Kisan Vikas Patra etc.
Which accounts will be frozen?
According to the Postal Department, there are many types of small savings accounts that can be frozen. These include Time Deposit (TD), Monthly Income Scheme (MIS), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS), Kisan Vikas Patra (KVP), National Savings Certificate (NSC), Recurring Deposit (RD) and Public Provident Fund (PPF) accounts.
What will happen to the account when it is frozen?
When your post office savings account is frozen, you will not be able to do any transaction from it. This means that you will neither be able to withdraw nor deposit money. Also, standing orders and online services will also stop. The process of identifying and freezing such accounts will start from July 1 and January 1 every year and will be completed within 15 days. This means that accounts that complete three years on June 30 and December 31 every year will be identified and frozen.
How to unfreeze your small savings account?
If your account gets frozen, you will have to get it reopened. For this, you will have to submit the required documents to the concerned department. The account holder has to go to any post office and provide the passbook or certificate KYC documents (mobile number, PAN card and Aadhaar card or address proof) of the frozen account.
The account holder will also have to provide the account closure form, passbook and post office savings account or bank account details. Also, a copy of a cancelled cheque/passbook will also have to be given so that the maturity amount can be deposited in their savings account. The department will first check the depositor’s information. Then, he will match the signature to ensure that the account holder is genuine.
If everything is found correct, the account will be unfrozen. The maturity amount will be credited to the account holder’s post office savings account or bank account. This amount will be deposited through ECS (Electronic Clearing Service).
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