In a response via a circular Department of Post clarified that for claims in respect of post office savings schemes physical presence of witnesses is not necessary if there is furnished self-attested photocopy of address or ID proof are provided together with other claim documents.

This is after several representatives suggest that post offices are asking for physical presence of witnesses for accepting the claim against deceased.
The valid ID and address proof are as prescribed in the KYC master circular, said department of Post.
For Proof of Identity
Aadhaar Card
Passport
Driving License
Voter ID Card
Ration Card with photo
Post office ID card
Central/state govt of PSU ID card, job card under MG-NREGA signed by a state govt officer
PAN Card
Certificate of address with photo from Govt. recognized educational institutions(for students, studying at present)
Proof of Address
Aadhaar Card
Passport
Driving License
Voter ID Card
Ration card with address
Photo Identity Card having address (of Central Govt./PSU or State Govt./PSU)
Certificate of address with photo from Govt. recognized educational institutions (for students, studying at present)
Salary Slip of reputed Employer with current address.
Letter issued by National Population Register containing details of name and address
Electricity, telephone, post-paid mobile, piped-gas, water bill (not more than 2 months old)
Property or municipal tax receipt.
Letter of allotment of accommodation from employer issued by the State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and license agreements with such employers allotting official accommodation:
Bank or Post Passbook/Statement with address
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