The government has now made it mandatory for those investing over Rs 10 lakh in post office schemes to provide proof of source of funds. It has also brought all investments in post office schemes under stricter KYC/PMLA compliance rules to prevent misuse for terrorist financing/money laundering activities. The Department of Posts has directed post office officials to collect income proofs from certain categories of small savings schemes’ investors. High-risk customers are required to provide proof of money that is being invested apart from the commonly followed KYC norms. For basic savings accounts, the document proving that the depositor is a beneficiary of any government scheme is mandatory.

Source: Economic Times May 28, 2023 02:28 UTC