Post Office FD
Post Office FD: Many people who save at the post office of India invest money in Fixed Deposit Scheme. Especially for big expenses like marriage, people consider FD to be a safe investment. But the question comes that if the need for money falls before maturity, should they be allowed to withdraw their money? Recently, the Odisha High Court has given an important verdict on this issue, which has brought great relief for the general public.
What was the matter?
A woman had deposited her money in five fixed deposits. The duration of this FD was five years. But he was to be married soon, so he needed to withdraw money immediately from his deposit. He applied to the post office to withdraw money ahead of time, but the post office turned down this request. According to the post office rule, it was not possible to withdraw money before the completion of the five -year period.
After this dismissal, the woman filed a case in the Odisha High Court. He told the court through his lawyers that due to the expenses of marriage, it is necessary to withdraw his FD money ahead of time.
Post office rules and arguments
Rule 8 (d) of the post office fixed deposit scheme clearly states that the deposit amount cannot be withdrawn before the completion of four years. But in the notification of 7 November 2023, the revised Rule 8 (D) stated that premature withdrawal is not completely closed. It was also said that if the money is withdrawn after four years, then the interest rate will be different.
Post office lawyers argued in the court that the rules are clear and withdrawal of withdrawal may not be allowed before completion of four years as the deposit period is five years. He said that the rule is law and it is necessary to be followed.
What did the High Court say?
A bench headed by Justice Dixit Krishna Shripad said that this money is the woman’s own. The need for money for marriage is a valid emergency situation. Because of this, the emergency need of the woman cannot be ignored. The court also said that Rule 8 (D) does not ban premature withdrawal completely. This rule only states that the interest rate on withdrawal will be different after four years. This does not mean that it is not possible to withdraw money.
Finally, the Odisha High Court considered the post office rejection wrong and told the woman that she could withdraw her deposit within two weeks. The court said that due to marriage, it is necessary to allow before the time to withdraw money so that it can complete its ceremony. Also, if there is a delay in withdrawing money, then interest will also be fined at the rate of 1% per month.