If you invest in Recurring Deposits (RD) or the Public Provident Fund (PPF), this update is important for you.
The Postal Department has now extended the e-KYC facility using the depositor’s biometrics.
Earlier, this digital facility was available only for selected savings schemes like the Monthly Income Scheme (MIS), Term Deposit (TD), Kisan Vikas Patra (KVP),
and National Savings Certificate (NSC). Now, RD and PPF schemes have also been included under e-KYC.
You can now open RD and PPF accounts easily
As per an order by the Department of Posts dated July 7, 2025, RD and PPF accounts can now be opened and deposits can be made using e-KYC authentication.
In addition, loans against RD and PPF accounts can be opened and repaid through this method.
Withdrawals from PPF accounts can also be done at post offices using Aadhaar biometrics, with no withdrawal limit.
What the order says
The order mentions that if someone wants to open an RD account by transferring money from their post office savings account, then the savings account must be a single or joint B type account of the depositor.
It further adds that when the account is opened using money from a post office savings account and authenticated with biometrics, the withdrawal form (SB-7) is not required.
Current interest rates on schemes
Recently, the government has not changed the interest rates for any savings schemes for the July–September quarter of the financial year 2025–26.
The three-year fixed deposit continues to offer 7.1% interest. The interest rates on the Public Provident Fund (PPF)
and post office savings deposits also remain unchanged at 7.1% and 4% respectively for this quarter.
The interest rate on the Kisan Vikas Patra is still 7.5%, and the investment matures in 115 months. For the National Savings Certificate (NSC), the interest rate remains at 7.7%.
Just like in the first quarter, investors in the Monthly Income Scheme will continue to receive 7.4% interest in the second quarter as well.
