1. Calculation Of Interest. (Savings Bank)
Interest in a SB account is calculated every year on 31st March.
To calculate the annual interest in a SB account Interest Bearing Balance (IBB) is carried out each month.
IBB is the Lowest balance between close of 10th and last day of calendar month.
If the balance in a particular month is less than Rs.20/- ignore it for IBB .
RULE NO : 74 POSB Manual Volume -I
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2. RULE NO : 74 POSB Manual Volume -I
* IBB is Calculated from April to March every year.
* The formula of calculation of interest is as follows.
Total Interest Bearing Balance X Rate of interest
Interest =
12 X 100
RULE NO : 74 POSB Manual Volume -I
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3. RULE NO : 74 POSB Manual Volume -I
If the Interest arrived at is less than Re.1/- it is not added to the account.
Interest arrived is always rounded to nearest rupee.
Annual Interest calculation is done at Head Office only.
RULE NO : 74 POSB Manual Volume -I
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4. RULE NO : 74 POSB Manual Volume -I
Interest statement is sent to all Departmental Sub Offices by HO for posting in passbooks.
In Sanchya Post Software Interest is calculated automatically.
RULE NO : 74 POSB Manual Volume -I
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