Maximum limit of 2 years fixed for admissibility of Post Maturity Interest has been removed.
Procedure:- Now PMI should be paid from the date of maturity to date of payment at the simple interest rate applicable to savings account from time to time. The rate of interest shall be equal to the rate applicable from the date of maturity to the date of payment at different times. For example, if an account was matured on 26.8.2010 and the depositor attends the post office on 15.12.2011, he will be paid PMI at the rate 3.5% from 26.8.2010 to 30.11.2011 and at the rate 4% from 1.12.2011 to 14.12.2011. This shall be applicable to the existing as well as new investments in all schemes. Calculations’ are to be made manually till software is amended and recorded in the Register to be maintained in manuscript for future reference. Following formula should be adopted while calculating the Post Maturity interest for the number of days:-
To calculate simple interest for number of days:- MV×R÷100×N÷365
MV= Maturity Value
R= Rate of interest
N=Number of days the account stands
Note:- While calculating number of days, the day on which account matures shall be counted in number of days but the day on which payment is being taken shall not be counted.