Union budget 2023 – post office monthly interest scheme – an attraction

Posted On : February 9, 2023
Union budget 2023 – post office monthly interest scheme – an attraction
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Finance Minister Nirmala today announced to increase the maximum deposit limit of Post Office Monthly Income Scheme (POMIS). The new maximum deposit limit in this Government of India (GoI) backed small saving scheme will be  ₹9 lakh from ₹4.5 lakh for a single account holder and ₹15 lakh from ₹9 lakh for joint account holders.

Finance Minister Nirmala Sitharaman made an announcement in this regard during her Union Budget speech.

“The maximum deposit limit for Monthly Income Account Scheme will be enhanced from ₹4.5 lakh to ₹9 lakh for single account and from ₹9 lakh to ₹15 lakh for joint account," said Nirmala Sitharaman while presenting the Union Budget 2023 in parliament.


After this rise in maximum deposit limit from ₹4.5 lakh to ₹9 lakh, minimum amount required to open Post Office Monthly Income Scheme or POMIS account would remain same ₹1000. Similarly, in a joint account, all joint account holders will have equal share in the total deposited amount. 


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 interest payable every month in Post Office Monthly Income Scheme or POMIS is not claimed by the account holder, such POMIS interest shall not earn any additional interest.


Pre-mature withdrawal is allowed in this small saving scheme but not before before one year of account opening. 

“If 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," the Department of Post website claimed adding, “If account closed after 3 year and before 5 year from the date of account opening, a deduction equal to 1% from the principal will be deducted and remaining amount will be paid."



·        Opportunities for citizens with focus on the youth

·        Growth and job creations

·        Strong and stable macro-economic environment


·        Inclusive development

·        Reaching the last mile

·        Youth power

·        Financial sector

·        Green growth

·        Unleashed the potential

·        Infrastructure and investment


·        Building digital public infrastructure: Building an accessible inclusive and informative solution for farmers.

·        Setting up agriculture accelerator fund: For the encouragement of innovative ideas for startups in rural areas

·        ANB Horticulture Clean Plant program to be launched: To boost production of high value horticulture crops

·        Targeted funding: INR 20 Lac Crore agricultural credit has been targeted as animal husbandry, dairy and fisheries sector.

·        Making India global hub for millets: “project Sree Anna”, support to be given to IIMR, Hyderabad for promoting research

·        Setting up of widely available storage capacity: Will enhance farmers remuneration by enabling sale at appropriating times


·        157 new nursing colleges to be established

·        Sickle cell anemia elimination mission to be launched

·        New programme to research in pharmaceutical to be launched

·        Joint Public and private medical research to be encouraged via select ICMR labs.

·        Increased expenditure on health and education from 1.4% to 2.1% in health and 2.8% to 2.9% in education


·        Revamped teachers training via District Institutes of Education and Training

·        National Digital Library to be set up for children and adolescents

·        States will be encouraged to be set up physical libraries at panchayat and ward levels


·        9 crore drinking water connections to rural areas

·        Cash fransfer of INR 2.2 Lac Crore to over 11.4 crore farmers under PM-KISAN

·        Insurance cover for 44.6 crore persons under PMSBY and PMJJY

·        47.8 crore PM Jan Dhan Yojna bank accounts

·        220 crore Covid vaccinations of 102 crore persons

·        9.6 crore LPG connections under Ujjawala program

·        11.7 crore households toilets constructed under SBM


·        Incentives to boost investment in infrastructure and productive capacity resulting in frowth and employment

·        Increased capital investment outlay by 33.4% to INR 10lac crore

·        Continuation of 50 year interest free loan to state govt. to incentivize infrastructure investment

·        Highest ever capital outlay of INR 2.4 lakh crore for Railways

·        100 transport infrastructure projects identified for end-to-end connectivity for ports, coal, steel and fertilizers sector

·        Creating urban infrastructure in tier-2 and tier 3 cities via establishment of UIDF (urban infrastructure development fund)


·        Make AI in India: three specialized AI centers to be set up in educational institutes: AI based solutions in agriculture, health and sustainable cities

·        National Data Governance Policy: Enable access to anonymized data for research by start-ups and academia

·        Vivad se vishwas I: Less stringent contract execution for MSMEs: relieve to MSME affected during the Covid period

·        Vivad se vishwas II: Easier and standardized settlement scheme: Faster settlement of contractual disputes of Govt. and Govt. undertakings

·        Phase 3 e-Courts to be launched for effective administration of justice

·        Entity Digi Locker: facilitating secure online storing and sharing of documents

·        Setting up 100 labs for 5G services based application

·        R&D grant for lab grown diamonds sector: to reduce import dependency by encouraging domestic productions


·        PM-PRANAM to be launched: will incitivize states/UT to promote usage for alternative fertilizers.

·        500 new waste to wealth plants: to be established under the GOBAR Dhan scheme for promoting circular economy

·        Sustainable ecosystem development: MISHTI: Mangrove plantation along the coastline

·        Amrit dharohar for optimum usage of wetlands


·        Setting up of national finance information registry: to enable efficient lending, promote financial inclusion and enhance financial stability

·        Setting up of a central data processing center: for faster handling of administrative work under the Companies Act

·        Credit Guarantee scheme for MSME: expanded corpus under a revamped scheme to enable additional collateral free guaranteed credit for INR 2 lac crore

·        Mahila Samman Bachat Patra: One time new small savings scheme for a 2-year period with a deposit facility of up to INR 2 lacs for women

·        Benefits for senior citizens: enhanced maximum deposit limit for senior citizens saving scheme from INR 15 lacs to 30 lacs.

·        Other initiatives: To promote business activity on GIFT IFSC

Create more trained professional in securities market via award of educational certificates


·        50 year interest free loans to states:

To be spent on capital expenditure within 2023-24

Part of the loan in conditional on states increasing actual capital expenditure and parts of outlay will be linked to states undertaking several reforms

·        Fiscal deficit of 3.5% of GSDP allowed for states (0.5% tied to power sector reforms)

·        Fiscal consolidation: targeted fiscal deficit to be below 4.5% by 2025-26


·        Enhanced limits for micro enterprises and professionals to avail benefits of presumptive taxation; 95% of receipts to be non cash

·        Deduction on payment made to MSME to be allowed only when payment is actually made

·        Extending 15% corporate tax benefits to new co-operatives commencing manufacturing till 31st march 2024

·        Higher limit of INR 2 lacs for member for deposit and loans in cash by PACS and PCARDBs

·        Higher limit of INR 3 Crore for TDS on cash withdrawal for co-operative societies

·        Extension of the date of incorporation by one year for income tax benefits to startups

Benefits to carry forward of losses on change of shareholding of startups from seven years of incorporation to 10 years.



Written By:
Kishan Dutt Kalaskar Retired Judge

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