SB Order 33/2021 [PM Cares for children scheme 2021]- The department of posts has been issued a new SB order for the year 2021. It is named SB order no. 33/2021. We know that 32 SB orders have already been issued by the postal directorate. Hence It is called SB order 33/2021. This new SB order is regarding the introduction of PM CARES for children scheme 2021. 

What is SB order 33/2021?

It is good news for all Indians that the Ministry of Finance has introduced a new scheme for all children. This Scheme may be called the PM CARES for Children Scheme, 2021. It shall come into force on the date of its publication in the Official Gazette. A new account can be opened at any post office in India for children up to 18 years. The Ministry of Women and Child Development will coordinate and manage this scheme. You can check this scheme in detail here. Just read this post up to the end.

SB Order 33/2021

What is PM Cares for children scheme 2021

(1) In this Scheme, unless the context otherwise requires,-
  • (a) “Account” means an account opened in post offices under this Scheme.
  • (b) “account holder” means beneficiary child in whose name the account is held.
  • (c) “Act” means the Government Savings Promotion Act, 1873 (5 of 1873).
  • (d) “concerned authority” means the Ministry of Women and Child Development for the purpose of coordination and overall management of this Scheme.
  • (e) “date of event” means the date between the period 11.3.2020 to 31.12.2021 during which the children who had not attained the age of eighteen years, lost both parents or last surviving parent or both adopted parents or sole legal guardian to COVID-19 pandemic.
  • (f) “date of opening of account” means the date on which the account is opened under the scheme.
  • (g) “Form” means forms appended to this Scheme.
  • (h) “General Rules” means the Government Savings Promotion General Rules, 2018.
  • (i) “joint account holder” means the concerned District Magistrate, who shall act as the guardian for the purpose of operation of the account under the Scheme.
  • (j) “scheme guidelines” means the guidelines issued by the Ministry of Women and Child Development on PM CARES for Children Scheme, 2021.

Addendum in SB Order 33 2021- Clarifications on the operation of PM CARES for Children Scheme, 2021 and circulation of provisional Accounting Procedure for ‘PM CARES for Children Scheme-2021– Regarding

Who can open an account under PM CARES for children scheme 2021

An account may be opened in the name of a beneficiary with the concerned District Magistrate as joint account holder for an eligible beneficiary who has not attained the age of 18 years on the date of the event and has also not turned 18 years on the date of opening of an account, in accordance with the scheme guidelines.

Provided that a single account may be opened for a beneficiary otherwise eligible under the scheme guidelines who have turned 18 years or more on the date of opening of the account.

No joint account shall be opened under this Scheme except as provided under subparagraph (1) of
paragraph 3.

The application for opening an account in Form-1 shall be accompanied by the documents of the eligible beneficiary, as specified by the concerned authority, under the scheme guidelines.


How much money can be deposited under PM CARES for children scheme 2021

The upfront lumpsum contribution shall be made only from the PM-CARES Fund, within one month of the opening of the account, in the manner as specified in the table below:-

PM CARES for children scheme 2021

For purposes of computation of lumpsum contribution from PM CARES Fund, the age of eligible beneficiary shall be the number of completed years on the upcoming date of birth.

For example. - The upfront lumpsum contribution amount for 4 month-old eligible beneficiaries shall be the amount specified for one-year-old. Similarly, the upfront lumpsum contribution amount for 12 years 9 months old eligible beneficiary shall be the amount specified for 13 years old. Any number of months and days shall be rounded off to the next complete year.

Age-based upfront lumpsum contribution, calculated as per sub-paragraph (2) of paragraph 4, shall be deposited in the account of the account holder by referring to the Table and the upfront contribution shall become Rs. 10 lakh when the account holder attains the age of 18 years.

Upon account holder attains the age of 18 years, the said account with a corpus of Rs.10 lakh, shall become a single account of the account holder, and bear the rate of interest applicable on the National Savings (Monthly Income Account) Scheme, 2019, as notified by the Central Government from time to time, for the duration from the account holder attains the age of 18 years to 23 years.

For a beneficiary otherwise eligible but has attained the age of 18 years or more as on the date of opening of account under the proviso of subparagraph (1) of paragraph 3, the upfront lumpsum contribution of Rs. 10 lakhs shall be deposited into a single account in the name of the eligible beneficiary and the corpus of Rs. 10 lakhs shall bear the same prevailing rate of interest applicable to the National Savings (Monthly Income Account) Scheme, 2019, as notified by the Central Government from time to time, for the duration from the date of credit of upfront lumpsum contribution in the account till the account holder attains the age of 23 years.

➤ Addendum in SB Order 33 2021- Clarifications on the operation of PM CARES for Children Scheme, 2021 and circulation of provisional Accounting Procedure for ‘PM CARES for Children Scheme-2021– Regarding

Interest on deposit in PM CARES for children scheme 2021

The upfront lumpsum contribution in the account of an eligible beneficiary shall become Rs. 10 lakh when the account holder attains the age of 18 years.

If the account has been opened under sub-paragraph (5) of paragraph 4, the account shall operate as a monthly interest scheme and the monthly interest shall be payable to the account holder on completion of a month from the date of credit of upfront lumpsum contribution in the account.

The single account with a corpus of Rs. 10 lakhs shall operate as a monthly interest scheme once the account holder attains the age of 18 years and shall bear the rate of interest applicable to the National Savings (Monthly Income Account) Scheme, 2019, as notified by the Central Government from time to time, for the duration from the account holder attains the age of 18 years to 23 years.

Interest shall be paid on the credit of upfront lumpsum contribution in the account on a prospective the basis under the scheme and if the interest payable every month from the single account opened with a corpus of Rs. 10 lakhs is not claimed, such interest shall not earn any additional interest.

No interest shall be paid once the account holder attains the age of 23 years.

Interest shall be rounded off to the nearest multiple of one rupee and for this purpose any amount of fifty paisa or more shall be treated as one rupee and any amount less than fifty paisa shall be ignored.

How to operate of account under PM CARES for children scheme 2021

The account opened as per sub-paragraph (1) of paragraph 3 shall operate as a joint account with the account holder (below eighteen years as on date of opening of the account) and the concerned District Magistrate.

For account holder of eighteen years of age or above, under the proviso of sub-paragraph (1) of paragraph 3, the account shall be operated by the account holder as a single account after submitting KYC documents.

➤ Addendum in SB Order 33 2021- Clarifications on the operation of PM CARES for Children Scheme, 2021 and circulation of provisional Accounting Procedure for ‘PM CARES for Children Scheme-2021– Regarding

Premature closure of account under PM CARES for children scheme 2021

In the event of the death of the minor account holder, the account shall be closed on an application in Form-2 and the lump sum upfront contribution shall be paid to the joint the account holder for further transmission to the PM-CARES Fund.

Premature withdrawal or closure of the account shall not be allowed.

Closure of account under PM CARES for children scheme 2021

The Scheme envisions upfront lumpsum contribution becoming Rs. 10 lakhs at the time of the account holder attaining 18 years of age and when the account holder attains the age of 23 years, the eligible balance shall be disbursed to the account holder and the account shall be closed on an application in Form-2.

PM CARES for children scheme 2021 management

Ministry of Women and Child Development shall be the nodal office and shall look into all matters pertaining to initiation and operation of the Scheme including problem-solving, identification of beneficiaries, the opening of accounts, payment of upfront lumpsum contribution, scheme related and beneficiary-wise accounting of credits or debits, scheme-related pay-in and pay-out, coordination with other agencies during implementation.

Closure of the PM CARES for children scheme 2021

The Scheme shall be close-ended except for eligible beneficiaries as per the scheme guidelines and upfront lumpsum contributions from PM CARES Fund and upon settlement of dues, this Scheme shall stand closed.


11. Application of General Rules.- Provisions of the General Rules shall, so far as may be, apply in
relation to the matters for which no provisions have been made in this Scheme.
12. Power to relax.-Where the Central Government is satisfied that the operation of any of the provisions of this Scheme causes undue hardship to the account holder, it may, by order and for reasons to be recorded in writing, relax the requirement of that provision or provisions in respect of such account holder, in a manner not inconsistent with the provisions of the Act.

SOP for PM CARES for children scheme 2021

Process Flow

For the operation of the Scheme, two accounts will be opened in the name of the beneficiary: -

a. Basic Savings Account: - In the name of Beneficiary with zero (0) balance. If the beneficiary is minor, it is to be opened under the guardianship of the District Magistrate

b. PM CARES for Children Scheme, 2021 Account: - In the name of Beneficiary. If the beneficiary is minor, this account will be opened as a Joint Account in the name of the Beneficiary and District Magistrate, till the minor attains the age of 18.

Note: - Beneficiaries‟ Funds will be credited in Basic Savings Account and by debiting Basic Savings Account „PM Cares for Children Scheme Account‟ will be opened. The monthly interest after the age of 18 years and maturity value may also be credited in this linked Basic Savings Account.

Process at Post Office level

After identification of beneficiary, the District Magistrate will submit two Form-1 (Account Opening Form duly verified) and KYC documents of the beneficiary at the designated post office at the district HQ for the opening of account Basic Savings Account and „PM CARES for Children Scheme Account‟ under PM CARES for Children Scheme, 2021.

After verification of Account Opening Forms and KYC documents concerned post office shall create two CIF IDs, one each for beneficiary and District Magistrate for the opening of account.

Note: - i) New CIF for the District Magistrate is to be created through CCRC menu in Finacle, with name as „District Magistrate‟.
ii) New CIF for the beneficiary is to be created through CCRC; while creating CIF for the beneficiary, CIF created for „District Magistrate‟ as mentioned in Step (i) is to be entered as guardian CIF, if the beneficiary is minor.
iii) A separate guard file to be maintained in post office concerned for preservation of Account Opening Form and KYC documents of beneficiary.

After creation and verification of CIF, the post office concerned will open a Basic Savings Account (under beneficiary scheme code "PRFTS‟ for this scheme) in the name of Beneficiary under the guardianship of the District Magistrate and the District Magistrate will also be the nominee. In case, Beneficiary has already attained the age of 18 years, the Basic Savings Account is to be opened as Single Account and nomination should also be registered in Basic Savings Account, as mentioned in the Account Opening Form.

After the opening of Account, the post office concerned will print the passbook of the Basic Savings Account and handover to the District Magistrate on the same day.

The District Magistrate will update the details of the Basic Savings Account of the beneficiary on the PM CARES for Children Portal developed by the Ministry of Women and Child Development.

Process at Nodal Office

After opening and updating all Basic Savings Account of the Beneficiary on the portal the Nodal Ministry will transfer the fund online through NPCI by using „NACH‟ for all Basic Savings Accounts of the Beneficiary.

Note: - The amount transferred in each Basic Savings Account will be calculated by the Nodal Ministry of the basis of the Table prescribed in para 4 of PM CARES for Children Scheme, 2021 notified by Ministry of Finance dated vide GSR No 723(E) 06.10.2021. The next DOB (Date of Birth) of beneficiary on the date of fund transfer will be taken in to account for calculation of amount in accordance with PM CARES for Children Scheme, 2021 guidelines.

Chennai GPO is identified as nodal office for crediting „NACH‟ credits in these Basic Savings Account and Chennai GPO will post the amount in Basic Savings Accounts of the Beneficiaries.

After receipt of fund in Basic Savings Accounts of beneficiaries, the account will be opened under PM CARES for Children Scheme, 2021 centrally at Chennai GPO by debiting respective Basic Savings Account with the CIF ID of beneficiary and District Magistrate on the same day. It shall be ensured that a seamless transfer of funds (Debit/Credit) is carried out between Basic Savings Account and PM CARES for Children Scheme, 2021 account.

CEPT, Chennai will provide technical support to Chennai GPO for the opening of an account under PM CARES for Children Scheme, 2021‟ for smooth completion of this important activity. CEPT will also provide the details of CIF IDs and SOL IDs linked with the Basic Savings Account of beneficiaries of this scheme.

Nodal office will prepare a withdrawal slip for debiting the amount from Basic Savings Accounts of this scheme and a pay-in-slip for crediting the amount in PM Cares for Children Scheme 2021 Accounts. Nodal office will send both the vouchers along with the detailed list of Basic Savings Accounts in which amount was debited for opening of account under PM Cares for Children Scheme 2021 and the detailed list of accounts opened under this Scheme, duly verified, to SBCO along with other vouchers.

The accounting of fund received through NACH and opening of account under „PM CARES for Children Scheme, 2021‟ will be done at nodal office (Chennai GPO). The nodal office shall verify and tally amount of fund received and accounts opened by transferring from Basic Savings Account.

After opening of all accounts under „PM CARES for Children Scheme, 2021‟ the Chennai GPO will transfer these accounts in respective SOLs. No transfer fee will be applicable, as it is being done on administrative reason.

Note: (i). If the age of beneficiary is minor, the PM CARES for Children Scheme 2021 account will be opened under scheme code ‟PCFTD‟ as Joint account in the name of beneficiary with District Magistrate.
(ii). If the age of beneficiary is 18 years and above on the date of opening the account, the PM CARES for Children Scheme 2021 account will be under scheme code „PCMIS‟ as a single account in the name of the beneficiary.

After opening of accounts under „PM CARES for Children Scheme, 2021‟ by nodal office and transfer in to respective SOLS, nodal office will share the details of accounts transferred, to the post offices concerned through email.

Process at post office

Respective post offices will print the passbooks of account opened under „PM CARES for Children Scheme, 2021‟ and handover to District Magistrate, where Basic Savings Account stands opened. Account number is to be written on the Account Opening Form of the beneficiary.

District Magistrate concerned will hand over the passbook(s) to the beneficiary on attaining the age of 18 years. The District Magistrate will update the details of account opened under „PM CARES for Children Scheme 2021‟ on the PM CARES for Children Portal developed by the Ministry of Women and Child Development.

On attaining of age of 18 years, the beneficiary will submit revised Account Opening Form duly filled with the nominee details along with KYC documents at post office concerned and post office concerned will convert Joint account in to single account (Mode of Operation is to be changed from 017 to 012 and joint holder is to be removed. To get access for the menu for this activity, post office concerned will send email to CEPT through CPC with details of two user IDs). The activity shall be completed within 5 working days.

➤ Addendum in SB Order 33 2021- Clarifications on the operation of PM CARES for Children Scheme, 2021 and circulation of provisional Accounting Procedure for ‘PM CARES for Children Scheme-2021– Regarding

From the age of 18th year to 23rd year the beneficiary will receive monthly interest in his/her Basic Savings Account at the interest rate applicable for Monthly Income Account Scheme.

At the age of 23 years, the beneficiary will submit account closure form along with passbook of PM CARES for Children Scheme, 2021‟ account to the post office concerned. Post office concerned will close the account and transfer the maturity value in to beneficiary‟s linked Basic Savings Account. The activity shall be completed within 5 working days.

Steps to be followed for Closure of Accounts by the concerned post offices.
  • i). HCAACTD menu is to be used for closure of PCFTD / PCMIS accounts.
  • ii). PCFTD accounts – closure is allowed only on the event of death of beneficiary; closure proceeds are payable through office account 0340 & thereby a cheque will be issued to the District Magistrate.
  • iii). PCMIS accounts - Premature closure is allowed only on the event of death of beneficiary; closure proceeds are payable through office account 0340 & thereby a cheque issued to the nominee/claimant.
  • iv). After due verification of claim documents / closure application (Form-2), sanction memo should be shared with CEPT through concerned CPC, along with two user IDs for allowing closure process.
  • v). PCMIS accounts are to be closed once the beneficiary attains the age of 23; no PMI is payable for this scheme.

After completion of opening of all accounts CEPT Chennai will provide the following details for all accounts opened under the scheme to the Directorate.
  • a. CIF ID of the Beneficiary,
  • b. Date of birth of the Beneficiary
  • c. CIF ID of the District Magistrate,
  • d. Basic Savings Account number.
  • e. Date of Opening of Basic Savings Account.
  • f. SOL ID
  • g. Amount credited through NACH in Basic Savings Account.
  • h. Date of Credit in Basic Savings Account.
  • i. Account Number of „PM CARES for Children Scheme, 2021‟
  • j. Date of Account opening.
  • k. Amount

Postal Directorate will share the above details to Ministry of Finance (DEA) and Ministry of Women and Child Development for information and the data will be uploaded by the district authorities (CWC, DCPU & Postal Office) in the PM CARES for Children Portal.

In case of event of death of the minor account holder, both the accounts will be closed on receipt of application on Form-2 along with death certificate of the beneficiary & passbook from the District Magistrate at post office concerned and the Lump Sum amount credited will be paid to the District Magistrate by Cheque.

No premature closure will be allowed before attaining the age of 23 years of the beneficiaries except on the death of the beneficiary.

In case of any technical difficulties faced, the nodal office or post offices may refer the issue to CEPT, Chennai through email.

Part B: - Detailed procedure for opening of account in Finacle at Nodal Office.

New Product Code PRFTD is created for this new scheme „PM Cares for Children Scheme, 2021.

New Schemes – PCFTD & PCMIS are created in Finacle. PCFTD scheme is created for opening TDA type of account under „PM CARES for children scheme, 2021‟ with upfront lump sum contribution; PCMIS scheme is created for opening of MIS type of account for PM Cares after the beneficiary attains 18 years of age for monthly interest payment up to the age of 23.

Scheme PCFTD has minimum deposit period as 12 months (1 year) and maximum deposit period as 216 months (17 years).

Scheme PCMIS has a maximum deposit period of 5 years.

Part C :- Steps to be followed by CBS users for opening of account at nodal office

Note down the date & month of birth of the beneficiary from the CIF created by the concerned post office.

If the beneficiary already completed 17 years of age as on date of receipt of account opening application, then only PCMIS account is to be opened.

Based on the table provided below, arrive at the amount of deposit and cross-verify it with the details submitted by the District Magistrate.

PM CARES for children scheme 2021 sop

For account opening, the HOAACTD menu should be used. This menu is not customized to show validation warnings/errors like other account opening menus; hence users should be very attentive to each field value entered during the account opening process.

  • a) For example, if the DOB of the beneficiary is 20/12/2013, the age at the next birthday (20/12/2021) is 8 years.
  • b) Value date >> 20/12/2021
  • c) Deposit/Instalment amount >> 480710
  • d) Deposit period >> 120 months
  • e) In the criteria screen, enter the CIF of the beneficiary; select the scheme code as PCFTD.
  • f) In „General‟ Tab, SOL BOD date is shown as Account open date. Mode of operation to be entered as 017 (Joint B). No other details are to be entered in this tab.
  • g) In „Related Party‟ tab, details of the beneficiary will be shown against Main Holder. Guardian details are to be entered by adding another record.
  • h) „Relation Type‟ of Joint Holder should be selected as „Authorized Signatory‟; Relation code is to be entered as „016‟ (Legal Guardian). CIF ID of „District Magistrate‟ is to be entered. Other details will be auto-populated.
  • i) In „Scheme‟ tab, user should enter the value date as the next birthday of the beneficiary; upfront lumpsum contribution eligible for the beneficiary is to be entered in „Deposit/Instalment amount‟ field; based on age eligibility of the beneficiary, number of years of maturity is to be arrived and it is to be converted as Months; this value is to be entered deposit period.
  • j) In „Scheme‟ tab, Nomination option is to be selected as „No‟
  • k) In „Transaction‟ tab, for „Transaction Creation During‟ field, select „Opening‟; select transaction type as „Transfer‟ and Debit A/c ID. as “BASIC Savings Account Number”
  • l) In „Renewal & Closure‟ tab, Auto renewal Scheme to be entered as „PCMIS‟. Auto renewal Interest Table to be entered as MISGN. Auto renewal General Ledger Subhead Code to be entered as 32028
  • m) Again, click on „Scheme‟ tab and check the value shown in „Maturity Value‟ field. It should be 10 Lakhs (10,00,000). If a different value is shown, either the deposit amount or deposit period is wrongly entered and needs to be checked/corrected.
  • n) After entering all the above details, click on SUBMIT button. Account number will be displayed on successful opening of the account

Verification of the account should be done using HOAACVTD menu; select Verify option and enter the account number in Temporary A/c ID field.

All tabs should be visited and all the details mentioned above are to be cross-checked before clicking on SUBMIT button.

Account opening transactions will be listed in Long Book Reports

This account will be auto renewed to PCMIS scheme on the day beneficiary attains 18 years, with deposit amount as 10 Lakhs (10,00,000).

After the account is converted to PCMIS scheme, for MIS interest to be credited to beneficiary‟s Basic Savings Account, the same needs to be entered as interest credit account for the above MIS account using „Modify‟ option in menu HACMTD. Mode of Operation is to be changed from 017 to 012 and joint holder is to be removed. This modification needs to be verified by another user.

Note: - 1. At the time of conversion of account after attaining the age of 18 years, a revised Form-I with the nomination details to be filled by the beneficiary and KYC documents as prescribed in Government Savings Promotion General Rules 2018 shall be obtained.

After conversion of account, a fresh passbook (SB-5) shall be issued by the concerned Head Post Office and to be handed over to the beneficiary.

This step is to be carried out at post office concerned (SOL) where the PCFTD/PCMIS stands. Nomination is also to be done at the account SOL.

Part D:- Steps to be followed by users for opening Monthly Interest Scheme Account - For beneficiaries who are aged 17 years or above)

For account opening, HOAACTD menu should be used. This menu is not customized to show validation warnings / errors like other account opening menus; hence users should be very attentive to each field value during the account opening process.
  • a. In criteria screen, enter the CIF of the beneficiary; select the scheme code as PCMIS.
  • b. In „General‟ Tab, SOL BOD date is shown as Account open date. Mode of operation to be entered as 012 (Single). No other details are to be entered in this tab.
  • c. In „Related Party‟ tab, details of the beneficiary will be shown against Main Holder.
  • d. In „Scheme‟ tab, user has to enter the value date as „day of date of birth „(birth day of the beneficiary) and month/year as current month/year; in ‘Deposit/Instalment amount‟ field, amount is to be entered as „1000000‟ (Ten Lakhs); based on age of the beneficiary, number of months of maturity is to be arrived and it is to be entered deposit period. Value date may be back value date or future value date. It should not be beyond scheme introduction date, i.e. 08/10/2021.
  • ii. Value date >> 20/10/2021
  • iii. Deposit/Instalment amount >> 1000000
  • iv. Deposit period >> 50 months (As the beneficiary attains 23 years on 20/12/2025)
  • v. For example, if the DOB of the beneficiary is 20/12/2002, value date is to be entered as „20/10/2021‟ if SOL BOD date is less than the day of birth, i.e. 20.
  • e. In „Scheme‟ tab, Nomination option is to be selected as „Yes‟ and nomination detailed to be entered same as registered in Basic Savings Accounts of the beneficiary.
  • f. In „Transaction‟ tab, select option „Opening‟ for „Transaction Creation During‟ field; select transaction type as „Transfer‟ and Debit A/c ID. as Basic Savings Account of the beneficiary.
  • g. Click on „Flow‟ tab and check the monthly flows displayed.
  • h. After entering all the above details, click on SUBMIT button. Account number will be displayed on successful opening of the account.

For beneficiary who completes 17 years as on the date of receipt of account opening application, while opening PCMIS account, value date is to be entered as date of the beneficiary attaining 18 years and deposit amount of Rs.10 Lakhs with period 60 months.

For beneficiary who already completed 18 years as on the date of receipt of account opening application, while opening PCMIS account, value date is to be entered as day of birth date with month and year as current month/year and deposit period should be arrived at calculating the number of months from current month to the month in which the beneficiary attains 23 years.

Verification of the account should be done using HOAACVTD menu; select Verify option and enter the account number in Temporary A/c ID field.

All tabs should be visited and all the details mentioned above are to be cross-checked before clicking on SUBMIT button.

➤ Addendum in SB Order 33 2021- Clarifications on the operation of PM CARES for Children Scheme, 2021 and circulation of provisional Accounting Procedure for ‘PM CARES for Children Scheme-2021– Regarding

SB Order 33/2021 PDF download

Click here to download the PDF file of SB order no. 33/2021 
➤ Addendum in SB Order 33 2021- Clarifications on the operation of PM CARES for Children Scheme, 2021 and circulation of provisional Accounting Procedure for ‘PM CARES for Children Scheme-2021– Regarding

PM CARES for children scheme 2021 SOP download

Click here to download PM Cares for children scheme 2021 SOP PDF file

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