InvestorQ : What happens if I missed renewing my post office recurring deposit (RD) due to the lockdown? Do I still have to pay the penalty to revive the RD with Post Office?
Aditi Sharma made post

What happens if I missed renewing my post office recurring deposit (RD) due to the lockdown? Do I still have to pay the penalty to revive the RD with Post Office?

Answer
user profile image
Aashna Tripathi answered.
6 months ago


You may be lucky as the government has extended the grace period during the lock in period and the grace date stands extended for all such products till June 30th.Government has waived penalty / revival fee on 5-year Post Office RDs (recurring deposits) if monthly deposits are not made during this period. In fact, investors have the leeway to deposit monies till June 30 without attracting penalty or revival fee. This will apply to any outstanding RD instalment either in the previous fiscal year or in the month of April 2020. Normally, in the event of default on timely deposit of RD instalment, a fee of Rs.1 for every Rs.100 is charged. The depositor has to first pay the defaulted monthly deposit with default fee and then pay the current month deposit. After four regular defaults, the account is discontinued.