(1) The Account may be opened with a minimum initial deposit of one thousand rupees and thereafter any amount in multiples of one hundred rupees may be deposited in an Account subject to the condition that a minimum of one thousand rupees shall be made as deposit in a financial year in one Account.
(2) The total money deposited in an Account shall not exceed one lakh fifty thousand rupees in a financial year:
Provided that the deposit in excess of one lakh fifty thousand rupees in any financial year shall, if accepted due to any accounting error, not be eligible for any interest:
Provided further that such amount, which is deposited in excess of an annual ceiling of one lakh fifty thousand rupees, may be withdrawn anytime by the depositor.
(3) Deposits may be made in an Account till the completion of a period of fifteen years from the date of opening of such Account.
(4) An Account in which minimum amount as specified in sub-rule (1) has not been deposited shall be considered as an Account under default:
Provided that an Account under default may be regularised on payment of a penalty of fifty rupees per year along with the such minimum specified amount for the year or years of default .
(5) If in the case of any Account, the default is not regularised within fifteen years of the opening of the Account, then the whole deposit, including the deposits made prior to the date of default, shall be eligible only for interest rate prescribed for Post Office Savings Bank at the time of its maturity and any amount credited wrongly by way of interest into an Account under default shall be reverted to the Government account as soon as it comes to the notice of the Bank or the post office concerned.
(6) Sub-rule (5) shall not apply if the default occurred because of the death of the guardian of the Account holder who opened the account and in such cases, the Account shall be eligible for interest under rule 7.