Attention PPF and SSY Holders: A major change is being made by the Department of Economic Affairs of the Ministry of Finance in the Small Savings Scheme linked to the Department of Posts. For this, guidelines for the National Small Savings (NSS) Scheme have been issued through the Department of Posts. The purpose of these guidelines is to regularize irregularly opened accounts under savings schemes. The new guidelines will come into effect from October 1, 2024. They will be closed if the new rules are not followed.
Such accounts will earn zero interest
According to the circular issued by the department, six categories have been identified. Accordingly, new guidelines have been issued. Accounts opened before April 2, 1990, will get the benefit of the current rate of interest on the first account. The current Post Office Savings Account (POSA) rate plus 2% interest will be available on the balance in the second account. As per the new rules, 0% interest will be available on both accounts from October 1, 2024.
The principal amount will be refunded without interest
Under this, the rule will work for wrongly opened NSS accounts, PPF accounts opened in the name of children, more than one PPF account, extension of PPF accounts by foreigners and daughter welfare accounts opened by guardians other than parents. As per the guidelines, no interest shall be paid on more than two accounts and third and additional accounts. Apart from this, the principal amount will be refunded to the depositor.
PPF account
Post Office Savings Account (POSA) interest will be available on accounts opened in the name of minors. PPF rate will be applicable after the minor reaches 18 years of age. Maturity will be calculated from the age of 18 years. If the amount deposited in more than one PPF account is within the annual limit, then the rate effective for the scheme will be applicable in the primary account.
SSY Account
Accounts opened by grandparents (who are not legal guardians) have to change the guardian’s name. The original parent or legal guardian must do this. If a customer violates the rules of this scheme and opens more than two accounts, the additional account will be closed. Wrong accounts opened in the child’s name can be rectified and you will also get interest. All post offices have been asked to collect PAN and UID numbers from account holders or guardians. After updating the system first you can apply for regularization. The government has asked the postal department to inform account holders about the changes and help them comply with the rules.
Read More: PM Internship Yojana 2024: 1 Crore Opportunities for Youth
PPF Accounts opened by NRIs
People who are still coming to India and have PPF accounts. They will get interest till September 30, 2024. After that, they will not be interested.