MONEY ORDER

A money order is an order issued by the Post Office for the payment of a sum of money to the person whose name the money order is sent through the agency of the Post Office. A ‘Payee’ is the person named in money order as the person to whom the money is to be paid. The advantage of sending money to someone through money order is that the money is delivered at the house or his place of stay.

Procedure of sending the Money order.

  • Buy a money order form at the counter of the post office. A remitter is the person who send money order.
  • Fill in ink the necessary entries adding his signature or thumbs marks at the foot. A form without signature or thumb mark or incomplete in any respect will not be accepted. All entries made in the form must be legible and may be written in English, Hindi or in the language of the district either by the remitter himself or by any one on his behalf. The remitter may write on the coupon any communication he desires to make to the payee.
  • The amount for which a single money order may be issued must not exceed Rs 5000/-
  • The money order form duly filed in, together with the amount of the money order and commission either in cash or by Cheque be presented at the post office counter.
  • A receipt will be given for the amount paid by him on account of the money order and commission. Any error or omission in the receipt should be pointed out at once by the remitter, otherwise the Post Office will not be responsible.
  • After the money is paid to the payee the remitter of money order receives an acknowledgement of payment of the amount of the money order signed by the payee or his authorized agent. If the acknowledgment is not received in a reasonable time, a certificate of payment signed by the Postmaster of the office will be given on application. However, in the case of money orders issued in favor of Government or District, Local or Municipal Boards, the acknowledgment in some cases is retained by the payee who issued a departmental receipt to the remitter direct.
How your money order is sent and paid?
  •  All money orders are carried by air like letters and postcards without any surcharge wherever such a conveyance is available and is advantageous.
  • If the payee of a money order has moved from the place at which the order was originally payable, and has left written instructions with the post office for the re-direction of articles to his address, the money order will be re-directed and will be payable at the revised address without any extra charge if the office of payment is in India. If an inland money order is re-directed to a foreign country the differences between the commission at the foreign rate that would have been chargeable if the money order had originally been drawn in a post office of that country and the commission at the inland rate already paid will be deducted from the amount of the re-directed order when it is advised to be country of destination.
  • If the payee of a money order cannot be found or if the payee refuses to take payment on presentation of the Money order to him, the amount of the money order will be returned at once to the remitter free of charge.
  • If the payee while refusing to take payment on presentation of the money order to him, makes an application in writing to the post office of delivery for the detention of the money order or if the payee is not found at the address given on the money order, the money order will be detained in the post office for a period not exceeding seven days from the date of its presentation to the payee or from the date it is sent out for payment as the case may be. If the payee fails to take payment of the money days, the money order will be returned to the remitter on the first working day immediately following the expiry of the said period of seven days. The commission will in no case be refunded.
  • If payment of a money order to the payee cannot be effected and the amount cannot be repaid to the remitter owing to the latter not being found, the order will become void and its value be credited to the Central Government. But if the payee or remitter subsequently applies for payment, the amount of the order will be paid to him on the authority of the Postal Accounts Officer provided that application is made before the expiration of one year from the date of issue of the original order:-
  • The amount of a money order other than a V.P. money order shall be repaid to the remitter in case the payee is dead: Where the remitter or, in case of a V.P. money order the payee, is dead, the amount of the money order or money orders upto one hundred rupees shall be paid to the claimant on his executing a personal indemnity bond, and for amounts exceeding one hundred rupees, and indemnity bond with one surety shall be obtained from the claiman.
Responsibility of Post Office:
     The Post Office will not be responsible for (a) the wrong payment of a money order by incorrect or incomplete information given by the remitter as to the name and address of the payee, or (b) for payment of money order being refused or delayed by or on account of any accidental neglect, omission or mistake by or on the part of an officer of the Post Office, or (c) for any wrong payment of a money order after the expiration of one year the date of issue of the order. Hence the name and address of the payee must be entered with such completeness as shall secure identification and prevent risk of wrong payment. If a money order is payable from a post office in rural area, the name of father of the payee or the husband’s name in the case of women payee may also be indicated in the Money Order form to enable the correct party to be traced without difficulty. In the case of money orders payable in presidency and other large towns, the name of street, the number of the house in which the payee resides and the Postal address should invariably be given. The occupation, rank, trade or profession of the payee, any other particulars calculated to help in identifying him, should be added. The name of only one person may be entered as payee, except in the case of firms or corporations, whose usual designation must be given.
     A money order payable to a Government official, bank manager, or an editor of newspapers, etc in his public capacity, should contain the designation and not the name of the person for whom the order is intended. If the payee of a money order is illiterate, it will be necessary for him to make his mark on the money order in the presence of a witness whose signature must be obtained on the order.  
You can alter the address or place of payment of the money order
The remitter of a money order which has not been paid may request that the address of the payee shall be altered or that the name of post office at which the order was originally made payable, shall be changed. The required change will be made without additional charge on the remitter applying in writing to the Post Office at which the order was issued and producing the receipt and giving full particulars of the payees address as entered in the money order.

You can alter the payee’s name too.
The remitter of a money order which has not been paid may require that the amount be paid to some person other than the payee named in the order. The required change will be made, on payment of a second commission equal to the first, on the remitter applying in writing to the post office at which the order was issued and producing the receipt and giving full particulars of the payee’s address as entered in the money order.

You can even stop the payment if you feel so.
The remitter of a money order which has not been paid may stop payment and require that the money be repaid to himself. This will be done without additional charge on the remitter applying in writing to the post office at which the money order was issued and producing the receipt and giving full particulars of the payee’s address as entered in the money order. Payment can be stopped by telegram if the remitter pays the telegram charges. In no case however will the Post Office be responsible for inability or failure to stop payment of a money order in compliance with the remitter’s request.

Disposal of detained or refused money orders:-
     If the payee of a money order cannot be found or if the payee refuses to take payment on presentation of the Money order to him, the amount of the money order will be returned at once to the remitter free of charge:-
     Provided that if the payee while refusing to take payment on presentation of the money order to him, makes an application in writing to the post office of delivery for the detention of the money order or if the payee is not found at the address given on the money order, the money order will be detained in the post office for a period not exceeding seven days from the date of its presentation to the payee or from the date it is sent out for payment as the case may be. If the payee fails to take payment of the money days, the money order will be returned to the remitter on the first working day immediately following the expiry of the said period of seven days. The commission will in no case be refunded.

Void Money Order
     If payment of a money order to the payee cannot be effected and the amount cannot be repaid to the remitter owing to the latter not being found, the order will become void and its value be credited to the Central Government. But if the payee or remitter subsequently applies for payment, the amount of the order will be paid to him on the authority of the Postal Accounts Officer provided that application is made before the expiration of one year from the date of issue of the original order: Provided that the amount of a money order other than a V.P. money order shall be repaid to the remitter in case the payee is dead.
     Provided further that where the remitter or, in case of a V.P. money order the payee, is dead, the amount of the money order or money orders up to one hundred rupees shall be paid to the claimant on his executing a personal indemnity bond, and for amounts exceeding one hundred rupees, and indemnity bond with one surety shall be obtained from the claimant.

Exception:-In the case of money orders issued from field post office and family allotment MOs remitted on behalf of seamen working on Indian merchant ships, the limit of time for making such an application shall be two years.

Transmission of Money Order
All money orders are carried by air like letters and postcards without any surcharge wherever such a conveyance is available and is advantageous.

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