6 new rules have been introduced for schemes like Sukanya Samriddhi Yojana, PPF, Senior Citizen Savings Schemes. The Finance Ministry issued a circular on 21 August 2024 announcing these changes.
New Delhi: The central government has brought 6 new rules for schemes like Sukanya Samriddhi Yojana, PPF, Senior Citizen Savings Schemes under the post office. The Finance Ministry issued a circular announcing these changes on 21 August 2024. Let us tell you that the Finance Ministry has the right to regulate small savings accounts. As per the rule, this circular has been issued for regularization of all irregular accounts towards the Finance Ministry.
The government has identified 6 categories and issued guidelines for these. The major categories include irregular NSS accounts, PPF accounts opened in the name of minor, more than one PPF accounts, extension of PPF account on behalf of NRI and regularization of Sukanya Samriddhi Accounts (SSA) opened on behalf of grandparents apart from parents.
Two NSS-87 accounts opened before DG Posts order No. 35-19/9GSB-III dated 02.04.1990
(i). The first account opened will receive the prevailing scheme rate.
(ii). The second account (opened after the first account) will receive the prevailing POSA rate plus 200 bps on the outstanding amount.
(iii). Points (i) and (ii) will be subject to the following conditions:
(a). The cumulative deposit in both the accounts together should not exceed the applicable deposit limit for each year.
(b). The excess deposit (if any) will be refunded to the investor without any interest. (iv) Points (i) to (iii) are in the nature of one-time special dispensation to NSS-87 investors from the date of OM dated July 12, 2024 issued by the Ministry of Finance till September 30, 2024.
Both accounts will carry zero per cent interest from October 1, 2024.
(b). Two NSS-87 accounts were opened following the order of the Director General of Posts. No. 35-19/90-SB-III dated 02.04.1990:
(i). The prevailing scheme will apply to the first account opened.
(ii). The prevailing POSA rate will apply to the outstanding balance on the second account (opened after the first account), (iii). Points (i) and (ii) are subject to the following conditions:
(a). The total amount deposited in both the accounts should not exceed the applicable deposit limit for each year.
(b). The excess deposit (if any) will be refunded to the investor without any interest.
(iv). Points (i) to (iii) are in the nature of one-time special dispensation to the investors of NSS-87 from the date of Office Memorandum dated July 12, 2024 issued by the Ministry of Finance till September 30, 2024.
Both accounts will carry zero per cent interest from 1 October 2024 onwards.
(c) In case of more than two NSS-87 accounts
The principles stated for two accounts opened before/after Director General Post’s order No. 35-19/90-SB-III dated 02.04.1990 will apply. No interest will be paid for the third account or more irregular accounts and the principal amount will be refunded to the investor.
2. PPF account opened in the name of a minor
(a) POSA interest for such irregular accounts will be paid till the person (minor) becomes eligible to open the account, i.e. till the person attains the age of 18 years. Thereafter, interest at the applicable rate will be paid.
(b) Maturity for such accounts will be calculated from the date the minor attains majority, i.e., the date from which the person becomes eligible to open the account.
3. (a) The primary account will earn interest at the scheme rate provided the deposit amount is within the maximum investment limit applicable for each year.
(b) The balance in the second account will be merged with the first account provided the primary account remains within the maximum investment limit applicable for each year. After merger, the primary account will continue to earn interest at the prevailing scheme rate. Excess balance in the secondary account, if any, will be refunded at zero per cent interest rate.
(c) Any account other than the primary and secondary account will earn interest at zero per cent rate from the date of opening of the account.
4. Extension of PPF account by NRI
Only for those active NRIs who have PPF accounts opened under the Public Provident Fund Scheme (PPF), 1968, where the residential status of the account holder is not specifically asked in Form H, the account holder will be paid interest at POSA rate till September 30, 2024. On each call, the said account will earn zero per cent interest rate.
(5) Small Savings Account opened in the name of a minor Such irregular accounts can be regularized with simple interest. The interest rate for calculating simple interest on the account should be the prevailing POSA rate.
6. Rules for Sukanya Samriddhi Account opened by grandparents
In case of accounts opened under the guardianship of grandparents (who are other than legal guardians), the guardianship shall be transferred to the person entitled under the law, i.e., the natural guardian (surviving parent) or the legal guardian. (b) If more than two accounts are opened in a family in violation of Para 3 of Sukanya Samriddhi Account Scheme, 2019, the irregular accounts shall be treated as accounts opened in violation of the scheme guidelines and closed.
