New Rules For Small Savings Schemes: What Changes In PPF, Sukanya Samriddhi Yojana? Find Out
New rules for Small Savings Schemes: These guidelines, effective October 1, are aimed at improving compliance and efficiency across post offices and financial institutions
New Rules For Small Savings Schemes: The Ministry of Finance has released updated guidelines for addressing irregular accounts under various National Small Savings Schemes (NSS). These guidelines, which cover a wide range of accounts including NSS-87, Public Provident Fund (PPF) for minors, and Sukanya Samriddhi schemes, are aimed at improving compliance and efficiency across post offices and financial institutions. The updates were formally announced in a Department of Economic Affairs circular, effective October 1.
The new rules address six key categories of irregular accounts:
NSS-87 Accounts
Before April 2, 1990: The first account will earn the prevailing scheme rate, while the second account will receive a higher rate, subject to annual deposit limits.
After April 2, 1990: Both accounts will earn the scheme rate, and both must adhere to deposit limits.
From October 1, 2024: All NSS-87 accounts will earn zero interest.
PPF Accounts Opened for Minors
These accounts will earn interest at the Post Office Savings Account (POSA) rate until the minor turns 18, after which they will receive the applicable interest rate.
Multiple PPF Accounts
The main account will continue earning the scheme rate, while excess balances in any additional accounts will earn zero interest.
NRI PPF Accounts
If the account holder became a Non-Resident Indian (NRI) during the account’s tenure, interest will be paid at the POSA rate until September 30, 2024, after which the accounts will earn zero interest.
Small Savings Accounts for Minors (excluding PPF and Sukanya Samriddhi Accounts)
These accounts will earn simple interest at the POSA rate.
Sukanya Samriddhi Accounts Opened by Grandparents
Guardianship will be transferred to the legal guardian, and any additional accounts within a family will be closed.
These measures are part of the government’s efforts to streamline savings schemes and ensure better financial oversight. All post offices and financial institutions must implement the new procedures to maintain proper compliance.
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