National Small Savings Schemes New rules will be implemented from October 1 | New rules will be implemented from October 1 regarding small-savings schemes: Guidelines have been issued for PPF-Sukanya Samriddhi accounts, know the details
National Small Savings Schemes New Rules Will Be Implemented From October 1
New Delhi8 minutes ago
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The Economic Affairs Department of the Ministry of Finance has issued new rules regarding the National Small Savings (NSS) Schemes opened through post offices. These rules are to regularize the accounts opened irregularly under these schemes.
The new rules for National Small Savings Schemes will come into effect from October 1, 2024. According to the circular, different categories have been identified under the schemes of NSS and guidelines have been issued for them.
NSS-87 Accounts
Accounts opened before 2nd April 1990: The current scheme rate will be applicable on the first account. The balance in the second account will get the current Post Office Savings Account (POSA) rate plus 2% interest. From October 1, 2024, both accounts will get 0% interest.
Accounts opened after April 2, 1990: The current scheme rate will be applicable on the first account. The current post office savings account rate will be applicable on the second account. From October 1, 2024, both accounts will get 0% interest.
More than 2 accounts: No interest will be paid on the third and additional accounts. The principal amount will be refunded.
Public Provident Fund (PPF) Accounts
Accounts opened in the name of a minor: Interest will be paid at the Post Office Savings Account rate till the minor turns 18. After that, the interest rate applicable for PPF will apply. Maturity will be calculated from the 18th birthday of the minor.
More than one PPF accounts: If the deposit amount is within the annual limit, the primary account will be charged the rate in effect for the scheme. The balance of any secondary account will be merged with the primary account. The excess amount will be refunded with 0% interest. More than two additional accounts will earn 0% interest from the date of their opening.
Extension of PPF accounts for NRIs
Active NRIs who have PPF accounts that do not require residency details will receive POSA interest until September 30, 2024. After this date, the interest will be 0%.
Sukanya Samriddhi Accounts
In case of accounts opened by grandparents (not legal guardians), guardianship has to be transferred to the legal guardian or biological parent. If more than two accounts are opened in violation of the scheme guidelines, the additional accounts will be closed.
Accounts opened in the name of minor: Irregular accounts can be regularized with simple interest at prevailing POSA rates.
Important instructions to post offices
Verification: All post offices have been instructed to collect PAN and Aadhaar details from account holders or guardians, if these are not already available.
Also, the system has to be updated before submitting the regularization request. Post offices have to inform the account holders about these changes and guide them on how to follow the rules.
