The Government Announces Hike in Investment Limit under Post Office Monthly Income Scheme (PO MIS) in Budget 2023
Key Highlights :
1. The government announced a hike in investment limit under Post Office Monthly Income Scheme (PO MIS) in Budget 2023. The investment limit was doubled in case of single holding investment and up to Rs 15 lakh in joint holding investment. Earlier, PO MIS allowed invested of Rs 4.5 lakh (single holding) and Rs 9 lakh (joint holding) in the scheme.
2. The interest in PO MIS is reviewed by the government every quarter. The government has hiked the interest rate for April to June 2023 quarter. From April 1, 2023, the scheme will fetch an interest rate of 7.4% per annum on fresh investments made. The interest rate has been hiked by 0.30% from 7.1% earlier.
3. The premature closure of PO MIS account is allowed. An individual can close the PO MIS account before the expiry of five years by paying a penalty. However, premature closure is allowed only after the expiry of one year from the date of opening of the account. No deposit shall be withdrawn before the expiry of 1 year from the date of deposit. A penalty will be levied as follows if the monthly income scheme account is closed before 5 years: (i) If the PO MIS account is closed after 1 year and before 3 years - a deduction equal to 2% from the principal will be deducted and remaining amount will be paid. (ii) If the PO MIS account is closed after 3 years and before 5 years - a deduction equal to 1% from the principal will be deducted and the remaining amount will be paid.
The Government of India has announced a hike in the investment limit under the Post Office Monthly Income Scheme (PO MIS) in the Budget 2023. This decision is expected to encourage more people to invest in the scheme and help the government achieve its target of doubling the amount of money that is being invested in the scheme. Let's take a closer look at what the announcement means for the scheme participants and how it can benefit them.
The Investment Limit The investment limit in the Post Office Monthly Income Scheme (PO MIS) has been doubled for single holding investment and up to Rs 15 lakh in joint holding investment. Earlier, the investment limit was Rs 4.5 lakh for single holding and Rs 9 lakh for joint holding investments. The increase in the investment limit is expected to make the scheme more attractive for investors who want to generate regular income from their savings.
Interest Rate The government has also announced that the interest rate on PO MIS investments will be increased from 6.5% to 7.5% from the beginning of the year 2020. This increase in the interest rate is expected to make the PO MIS investments even more attractive for the scheme participants. The increase in the interest rate will provide higher returns on investment, making it an excellent option for those looking to earn regular income.
Benefits of the Investment Limit Hike The increase in the investment limit under the PO MIS is expected to provide several benefits to the scheme participants. One of the most significant benefits is that it will enable investors to earn a higher income from their savings. This income can be used to support various financial needs, such as paying bills, making investments, or supporting retirement. Moreover, the increase in the investment limit will also provide a much-needed boost to the Indian economy. It will lead to the infusion of more capital in the economy, which will help to create new jobs and stimulate economic growth.
Final Thoughts The decision to hike the investment limit under the Post Office Monthly Income Scheme (PO MIS) in the Budget 2023 is a positive step towards encouraging more people to invest in the scheme. It provides investors with an excellent opportunity to generate regular income from their savings and support their financial needs. With the increase in the interest rate, the scheme becomes even more attractive for investors looking for stable returns. This move by the government is expected to create a positive impact on the Indian economy by boosting investment and creating new opportunities for growth.
The Investment Limit The investment limit in the Post Office Monthly Income Scheme (PO MIS) has been doubled for single holding investment and up to Rs 15 lakh in joint holding investment. Earlier, the investment limit was Rs 4.5 lakh for single holding and Rs 9 lakh for joint holding investments. The increase in the investment limit is expected to make the scheme more attractive for investors who want to generate regular income from their savings.
Interest Rate The government has also announced that the interest rate on PO MIS investments will be increased from 6.5% to 7.5% from the beginning of the year 2020. This increase in the interest rate is expected to make the PO MIS investments even more attractive for the scheme participants. The increase in the interest rate will provide higher returns on investment, making it an excellent option for those looking to earn regular income.
Benefits of the Investment Limit Hike The increase in the investment limit under the PO MIS is expected to provide several benefits to the scheme participants. One of the most significant benefits is that it will enable investors to earn a higher income from their savings. This income can be used to support various financial needs, such as paying bills, making investments, or supporting retirement. Moreover, the increase in the investment limit will also provide a much-needed boost to the Indian economy. It will lead to the infusion of more capital in the economy, which will help to create new jobs and stimulate economic growth.
Final Thoughts The decision to hike the investment limit under the Post Office Monthly Income Scheme (PO MIS) in the Budget 2023 is a positive step towards encouraging more people to invest in the scheme. It provides investors with an excellent opportunity to generate regular income from their savings and support their financial needs. With the increase in the interest rate, the scheme becomes even more attractive for investors looking for stable returns. This move by the government is expected to create a positive impact on the Indian economy by boosting investment and creating new opportunities for growth.
Continue Reading at Source : economictimes_indiatimes
