Post offices to freeze inactive accounts: Here's what customers must do

Business Standard

18-07-2025

The postal department has begun a twice-yearly drive to freeze small savings accounts inactive for more than three years after maturity, aiming to protect depositors' funds and prevent unauthorised access.
As a new practice, post offices will identify such accounts every January and July. If your account has matured but you haven't withdrawn the funds or extended the tenure within three years, it risks being frozen.
Which accounts are impacted?
The rule applies to all major small savings schemes, including:
Time Deposits
Monthly Income Scheme
Public Provident Fund
Senior Citizen Savings Scheme
Kisan Vikas Patra
National Savings Certificates
Recurring Deposit
Once frozen, no transactions, withdrawals, deposits, standing instructions or online services will be allowed until the account is reactivated.
'The process of identifying and freezing such accounts will be completed within 15 days, starting from 1 January and 1 July every year,' said the department in a circular dated July 15, 2025.
How to unfreeze an account
To regain access, account holders must visit a post office and submit a few key documents for verification. Here's what you need:
-Passbook or certificate of the frozen account
-KYC documents: Aadhaar, PAN and address proof
-Account Closure Form (SB-7A)
-Cancelled cheque or a copy of a bank/post office savings account passbook for crediting the maturity value
Post office staff will verify your identity and signature before reactivating the account. Once cleared, the maturity proceeds will be credited to your linked savings account or bank account through electronic transfer.
If you hold any small savings account, check its maturity date and act quickly to avoid disruption. Proactive closure or extension within three years of maturity ensures uninterrupted access to your funds.