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.

• 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 of 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 ot in the language of the district either by the remitter himself of 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 authorised 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.

• 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 claimant

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) foe 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.  

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.

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.

Special Money Order Forms

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 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 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.

Special Money Order Forms :-  Certain special types of Money Order Forms have been prescribed for remitting Government dues and some of them are current only within the limits of the state for which they are issued.  These forms can be obtained from the Post Offices concerned.
Option of Post Office:-  The Directorate General may, at any time, suspend the issue of money orders upon or by any particular post office, or group of post offices of direct that money orders should not be issued except on payment of special rates of commission higher than the ordinary rates.

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.

Telegraphic Inland Money Orders

Authorised Offices:-            Every post office which is a money order office may issue and pay  telegraphic money orders with the exception of the offices specially excepted and marked (g) in the list of Post Offices published in Part III of this Guide and except in the cases mentioned in the note below this clause.  If there be no Government Telegraph Office at the station of payment the telegraphic money order will be sent by post from the nearest post office at which there is a Government Telegraph Office.

Limit of value :-
The amount for which a single telegraphic money order may be issued must nor exceed Rs 5000/- and must not include fraction of a rupee.
Fees:-

A fee for the issue  of a telegraphic money order will be charged at the rate of commission on an ordinary inland money order for the same amount added to a telegrams  charge calculated at the rates for inland telegrams for the actual number of words used in the telegram advising the remittance according as the telegram is to be sent as an “ Express” or as an “Ordinary” message.  In addition to these charges a supplementary fee as prescribed will be charged on each telegraphic money order issued.
                            Telegraphic money order:-

                             How obtained :- (1)       The remitter of telegraphic money order must fill in ink on an ordinary inland money order form, the entries for the remitter, and write across the form the words “ By telegraph express” or “By telegraph ordinary” according as to whether he wishes the telegram advising the remittance to be signaled as an express or as an ordinary message.   If he omits to write the class of the telegram, the T.M.O. will be classed and charged as “Ordinary”.  If he desires to have a private communication to the payee added to the telegram advising the remittance he should write it on the coupon of the money order and pay for the additional words at the rate in force for the time being for inland telegrams of the class to which the advice belongs.  Abbreviated addresses, or Code Words to represent the name of address of the payee must not be used.  The money order form duly filled in together with the amount to be remitted and the fee for the T.M.O. and private communication(if any) must be presented at the post office window during the hours notified for telegraphic money order business.
           (2)               The booking of telegraphic money order is subject to the following conditions:-
           (i)     Telegraphic money orders are accepted on the understanding that if the telegraph office of dispatch, transit office if any, or the telegraph office of destination is closed at the time telegraphic money order is accepted, it will not be transmitted by wire until these offices open.
           (ii)   An express telegraphic money order will, however, be accepted on payment of late fee for transmission during the hours when the office  at which it is handed in or the office to which it is addressed or an intermediate office through which it must pass, is closed.  The late fees will be at the prescribed rate for each closed office which is required to deal with the telegraphic money order. If the same sender presents of causes to he presented several telegraphic moony orders for dispatch at an office which is closed, a single late fee only is payable for each closed office.  If the attention of a closed office cannot be gained the late fee collected for that office only will be refunded.

Remitter’s Receipt :-

A receipt will be given to the remitter, showing the total amount paid by him the payee’s name, and hour at which the telegraphic money order was presented.

Date and hour of payment not guaranteed :-

Telegrams advising remittance are sent “express” or “ Ordinary” as noted by the remitter on the money order form, and postmasters are prohibited from giving assurance to the remitter as to the time within which the remittance will reach its destination or be paid to the payee.  If the order is issued at a station where there is a Government Telegraph Office and the Telegraph Office is closed at the time the order is presented at the post office for dispatch, and there is any likelihood of the message being delayed in transmission, the remitter will be informed accordingly.

Payment and Signature of Payee :-

           (1)  The payment of a telegraphic money order will ordinarily be made as soon as practicable after receipt of the telegraphic advice by the office of payment, at the residence of the payee, on his signing a receipt for the amount and the acknowledgement in ink in the space provided for the purpose and returning these documents to the postman.
           (2)  Telegraphic money order amounting to more than Rs 1000 in one day will not be paid to a person who is not either permanently resident within the jurisdiction of the office of payment or personally know to the postmaster in charge of such office until confirmation of the telegraphic advice had been received by post; unless in the mean time the payee can get a respectable local resident to stand surety for him by executing in indemnity bond for the amount of such orders, in the prescribed form.

Procedure if payee cannot be found: -

If the payee of a telegraphic money order refuses to take payment or cannot be found the telegraphic advice will be returned by post free of any further charge and the amount of the money order will be repaid to the remitter.  The fees will be not be refunded.

could 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.
                          Note 2:-            In the case of a money order in excess of the limit prescribed for remittance to a foreign country under any law or regulation in force at the time of such redirection, the remitter or the payee should obtain  payment of the amount of the money order in India either personally or through a duly authorised agent or furnish the authority of the Reserve Bank of India permitting the remittance of the amount of the money order out of India by means of a foreign money order.

Alteration in address or place of payment:-            The remitter of a money order which has not been paid may require 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.

Alteration of payee’s name:-            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.

Stoppage of payment :-            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.