Investors in popular savings schemes like the Public Provident Fund (PPF), Senior Citizen Saving Scheme (SCSS), and Sukanya Samriddhi Yojana (SSY) need to take immediate action as a significant update is looming.
These accounts are at risk of being frozen starting October 1, 2023, with just two days remaining for compliance.
Mandatory Aadhaar Implementation Hits Small Savings Schemes
The Finance Ministry has issued a notification mandating the use of Aadhaar and PAN for various small savings schemes, including PPF and National Savings Certificate (NSC).
This requirement was officially communicated through a notification dated March 31, 2023.
Depositors who opened accounts without providing their Aadhaar details at banks or post offices now have a six-month window, starting April 1, 2023, to submit their Aadhaar numbers.
Act Now to Prevent Losses: Frozen Accounts Could Impact Investors
Failure to comply with the Aadhaar mandate could lead to various consequences, potentially causing financial losses for investors.
Frozen accounts will prevent investors from making further contributions to their PPF or Sukanya Samriddhi accounts.
Additionally, the maturity amount will not be credited to their bank accounts until the Aadhaar number is provided.
To avoid these disruptions, investors are urged to promptly submit their Aadhaar information if they have not already done so.