Union Finance Minister recently announced the increase of deposit limit for the Post Office Monthly Income Scheme (POMIS).

Why in News:

• The deposit limit for the Post Office Monthly Scheme (POMIS) has been revised for a single account to Rs.4.5 lakh to Rs. 9 lakh and 15 lakh from Rs. 9 lakh for joint account holders.

About Post Office Monthly Income Scheme (POMIS):

• It is a Government of India backed small savings scheme that allows the investor to invest a specific amount every month.
• Eligibility:
  • A resident of India. NRIs are not eligible to invest in this scheme
  • Individual above the age of 10 years.
• Number of holders: At least 1 and at most 3 individuals can hold post office MIS.
• Maturity Period: 5 years
• Maximum limit: 
  • If you open an MIS scheme individually, then the maximum amount you can invest is 4.5 lakh. ( Increased to Rs.9 lakh in Budget 2023-24)
  • If the account is opened jointly, the investment limit will be 9 lakh. (Increased to Rs.15 lakh in Budget 2023-24)
• Lock-in period:On opening a Post Office Monthly Income Scheme, there will be a lock-in period of 5 years during which you cannot withdraw any money.
• Transferable: POMIS account is transferable from one post office to another. 
• Premature withdrawal: Premature withdrawal is allowed after one year of opening the account with a penalty.
• Taxability: Any income from this scheme does not come under TDS or tax deduction.