Now invest in Post Office Term Deposit, KVP, POMIS, NSC through Aadhaar e-KYC - New rule explained

Now you can invest in various post office small savings schemes without any paperwork. The Department of Post (DoP) has decided to offer fully digital onboarding through Aadhaar e-KYC for small savings schemes like Post Office Monthly Income Scheme (POMIS), Term Deposit, National Savings Certificate (NSC), and Kisan Vikas Patra (KVP).

Opening of account through Aadhaar-based biometric authentication, or eKYC, was previously allowed for the Post Office Savings Account (POSA).

In an internal order dated April 30, 2025, the Department of Post asked all the heads of postal circles/regions to extend the e-KYC functionality for the opening of POMIS, Term Deposit, KVP, and NSC scheme accounts.

"In continuation, Aadhaar-enabled, eKYC process has been enabled for opening of Monthly Income Account Scheme (MIS), Time Deposit Scheme (TD), Kisan Vikas Patra Scheme (KVP) and National Savings Certificate VIII Issue (NSC) scheme accounts w.e.f 23 .04.2025," the DoP said.

"Accordingly, now the post offices will be able to open the MIS, TD, KVP and NSC scheme accounts of Single-Individual (Adult) type through Aadhaar authentication using e-KYC CIF," it added.

How will the new process work?

Biometric authentication will be taken twice for opening of the accounts in above mentioned small savings schemes.

The order said that on invoking the CMISAOP menu, the Counter PA has to obtain the biometric of the depositor for getting the consent to use his/her Aadhaar and proceed for feeding the other details for opening of the account.

After completion of all the data entry in the CMISAOP screen, before submission, the second biometric of the depositor will be obtained for authenticating the transaction.

The order said that no deposit voucher will be collected for any amount of deposit while opening these accounts through Aadhaar authentication. The amount written by the depositor in the Account Opening Form (SB-eKYC-AOF) will be considered as the amount of deposit.

In case a depositor want to transfer funds from his/her Post Office Savings Account for opening POMIS/NSC/Term Deposit/KVP account then then the debit account should be either a Single or a Joint B type account of the depositor.

Debit account is the account from which the amount will be transferred.

Further, no withdrawal form will be collected from the depositor if the amount is transferred from his own Post Office Savings Account.

"In case the account is opened on transfer of funds from the PO Savings Account of the depositor, withdrawal form (SB-7) shall not be collected, as the account is opened through biometric authentication of the depositor," the order said.

The order further said that the development of functionalities like account closure, Transfer of Accounts, change of nomination (Account Modification), etc., through biometric authentication is underway. Till then, these operations will continue to be performed through the existing method.

Only masked Aadhaar to be used

Foll all eKYC transactions, masked aadhaar shall be used. In case a document contains unmasked Aadhaar, then the post master must mask the first eight digits of Aadhaar with black ink.

"For any eKYC-based transactions, AOF or any other form collected from the customer shall have Aadhar no. in masked form (xxxx-xxxx-_). If any document contains the unmasked Aadhaar, Postmaster should ensure that first eight digits of the Aadhaar number are masked using black ink pen or sketch or any available means," the order said.

"All the post offices and CBS-CPCs should ensure that the Aadhaar Number is masked in all the existing documents like AOF, KYC Form etc. containing the Aadhaar Number including the copy of the Aadhaar obtained," it added.

Paperless KYC

The DoP said that post offices should ensure that paperless KYC due diligence is performed for all new customers and existing holders.

"Circles should ensure that paperless KYC due diligence is performed for all the new customers and existing account holders for ease of KYC compliance and other benefits to the customers and Department," the order said.