A Postal Order is a type of a financial instrument which is meant to send money via a mail. It is to be purchased at a post office and is payable-at to the recipient at another post office. Poundage i.e. A small amount is to be paid by the purchaser as the fee for the service. A postal order is a type of a promissory note just like a cheque and not a legal tender.
It offers the convenience of a cheque, with maximum security. These can be bought from any post office and similarly can be redeemed at any commercial bank or a post office. It is valid for a time span of 3 months from the issue date.
Benefits of a Postal Order
Some of its benefits are mentioned below:
- You can buy a postal order from any post office all over India.
- It works like a cheque for people who do not have a cheque book.
- It can be redeemed at most commercial banks, retail postal agencies and post offices.
- These are available even where there are no facilities of banks.
- There is no need for any agreement to send or receive postal orders.
- There is no limit on the minimum value that can be sent.
- Postal orders are an extremely safe option.
I guess like a cheque, a postal order can;t really be redeemed unless there are funds in the account from which you are withdrawing. You have to be careful about buying postal orders from a reputable institution because like money orders, there are many scams out there. You may purchase a postal order that cannot be redeemed by the person who is receiving it.
Postal Order is a kind of financial instrument. The article explains about Postal Order and also its benefits to the readers. These orders are quite safe for the people and are even available in the absence of banks. The postal order can be bought from anywhere all over the country.