The notification has launched modifications associated to the untimely closure of accounts for the PPF.
Small financial savings schemes are funding choices overseen by the Department of Economic Affairs (DEA) beneath the finance ministry.
The authorities has not too long ago relaxed the norms for numerous small financial savings schemes, together with the Public Provident Fund (PPF) and Senior Citizen’s Savings Scheme (SCSS).
Small financial savings schemes are funding choices overseen by the Department of Economic Affairs (DEA) beneath the finance ministry.
At current, the federal government supplies 9 sorts of small saving schemes, which embrace Recurring Deposit (RD), PPF, Sukanya Samriddhi Yojana (SSY), Mahila Samman Saving Certificate, Kisan Vikas Patra, National Savings Certificate (NSC), and Senior Citizen Savings Scheme.
What Has Changed?
Senior Citizen’s Savings Scheme (SCSS)
For the Senior Citizen’s Savings Scheme, the brand new norms present three months to open an account in opposition to one month’s time at current.
As per the gazette notification dated November 9, a person can open an account beneath the Senior Citizen’s Savings Scheme inside three months from the date of receipt of the retirement advantages and proof of the date of disbursal of such retirement advantages.
According to the notification, curiosity on the deposit in an account opened beneath the senior citizen’s financial savings scheme might be calculated primarily based on the relevant scheme fee on both the maturity date or the prolonged maturity date.
Public Provident Fund (PPF)
The notification has launched modifications associated to the untimely closure of accounts for the PPF. The notification designates these modifications because the Public Provident Fund (Amendment) Scheme, 2023. It outlines changes particularly associated to untimely withdrawals beneath the National Savings Time Deposit scheme.
Post Office Savings Account
The notification specifies that if a deposit in a 5-12 months account is withdrawn prematurely after 4 years from the date of opening the account, the curiosity payable can be on the fee relevant to the Post Office Savings Account.
Under the present norms, if a 5-12 months time deposit account is closed after 4 years from the date of deposit, the curiosity can be calculated on the fee relevant for a 3-12 months time deposit account.
(With PTI inputs)
