POSB was made a Statutory Board
Saturday, 1st January 1972
Post Office Savings Bank (POSB) was made a Statutory Board, under the care of the Ministry of Communications. Its two principal functions under the Post Office Savings Bank Act of 1971 to carry on the general business of a savings bank and to promote saving and encourage thrift.
The new statutory corporation takeover all the bank's entire assets, which include about $83 million in deposits. As before, the new corporation will be able to invest in "stocks, funds and securities or such other investments as the Ministry for Finance may from time to time approve." In addition the bank may raise loans from the Government or with the consent of the Minister, from any source either by the creation and issue of debentures, stocks or bonds, or otherwise, as the Minister may direct.
Prominent members of the public and private sectors were appointed to sit on the POSB Board for three years as Directors. Mr. Tan Chok Kian was appointed Chairman, Messrs Wong Lee Hoong, Lim Soo Peng , Goh Mia Hoon, Han Kang Hong, Hwang Soo Jin and Lim Chew See were appointed as Directors. Mr. S. Ramdas was employed to be POSB General Manager.
The pension rights of the employees (which will be transferred from government to the corporation) will be preserved. Such employees will be offered a "no less favourable" than their current terms.
The history of the bank dates back to 1 January 1877. The British Government established the Post Office Savings Bank in the General Post Office Building in Raffles Place. In 1951, its number of depositors hit the 100,000th mark.