New Delhi:
The Department of Economic Affairs under the Ministry of Finance has introduced new guidelines for National Small Savings (NSS) schemes, specifically targeting accounts opened through post offices.
These changes are set to take effect from October 1, 2024, and aim to regularize accounts that were opened irregularly under these schemes.
The circular issued by the Ministry outlines six key categories, each with specific guidelines.
Categories and Guidelines
1. NSS-87 Accounts
Accounts Opened Before April 2, 1990:
The first account will earn the current scheme rate. The second account will accrue interest at the current Post Office Savings Account (POSA) rate plus 2%. Starting October 1, 2024, both accounts will earn 0% interest.
Accounts Opened After April 2, 1990:
The first account will receive the current scheme rate, while the second account will earn the current POSA rate. Both accounts will transition to 0% interest from October 1, 2024.
More Than Two Accounts:
No interest will be paid on the third and additional accounts, with only the principal amount being refunded.
2. Public Provident Fund (PPF) Accounts
Accounts Opened in the Name of a Minor:
These accounts will earn POSA interest until the minor turns 18, after which the applicable PPF interest rate will apply. The account’s maturity will be calculated from the minor’s 18th birthday.
Multiple PPF Accounts:
If deposits are within the annual limit, the primary account will receive the prevailing scheme rate. The balance in any secondary account will be merged with the primary account, and any excess amount will be refunded with 0% interest. Any additional accounts beyond two will earn 0% interest from the date of their opening.
Extension of PPF Accounts by NRIs:
Active NRIs with PPF accounts that don’t require residency details will receive POSA interest until September 30, 2024. After this, the interest rate will be 0%.
3. Sukanya Samriddhi Accounts
Accounts Opened by Grandparents (Not Legal Guardians):
Guardianship must be transferred to the legal guardian or biological parents.
Multiple Accounts in Violation of Guidelines:
Any additional accounts opened against the scheme guidelines will be closed.
Accounts Opened in the Name of a Minor:
Irregular accounts can be regularized with simple interest at the prevailing POSA rate.
Important Instructions for Post Offices
All post offices are required to collect PAN and Aadhaar details from account holders or guardians, if not already on file.
Additionally, the system must be updated before submitting any requests for account regularization.
Post offices are also tasked with informing account holders about these changes and guiding them on how to comply with the new rules.
These new rules are intended to ensure compliance and streamline the management of small savings schemes.
Account holders are advised to review these changes and take necessary actions to regularize their accounts before the new regulations take effect.
