Post Office Deposit Schemes for Retired employees of PSUs

No new accounts are opened under the Scheme from the close of business on 9-7-2004. [Notification : No. F. No. 15-01/2004-NS-II(i), dated 9-7-2004]

This scheme offered an option to earn a tax free income to retired employees of PSUs (Public Sector Undertakings) on their retirement benefits.

Salient features of POREP (Post Office Deposit Schemes for Retired employees of PSUs)


Employees of PSUs, who have retired voluntarily or normally in their own name or jointly with spouse.

Employees retired from Public Sector Banks, Life Insurance Corporation, General Insurance Corporation and other Public Sector Companies are also eligible.

Minimum amount

Rs. 1,000/-

Maximum amount

Entire retirement benefits in multiples of Rs. 1,000/-

Maturity period

Three years

Interest Rate

The investment earns interest at the rate of 7 per cent and is payable half yearly on every 30th June and 31st December.


Entire balance or part can be withdrawn after completion of three years. Only one withdrawal is permitted in a year.

The depositor can continue the account after three years.

Premature encashment can be made after one year from the date of deposit but before the expiry of 3 years in which case interest on the amount so withdrawn will be payable at 4%from the date of deposit upto the date of withdrawal.

Tax benefits

Not available

Interest Taxability

The interest earned is fully exempt from Income Tax under section 10(15)(iv)(i).

Other features

The account should be opened within three months of receipt of retirement benefits.

The account is operated through all branches of the State Bank of India and selected branches of nationalized banks.

The depositor can continue the account after Three years.