Business News Desk, Big news has come for those who invest in post office small savings schemes like PPF, SSY and NSS. The government is going to change the rules related to these schemes, which will come into effect from October 1. If you have invested in these schemes or are planning to invest, then this news is important for you. Earlier this week, the Department of Economic Affairs of the Union Finance Ministry has issued guidelines for the new rules.
Finance Ministry issued guidelines
The guidelines issued by the Finance Ministry regarding small savings accounts state that if any account is found to be irregular, it will be sent by the Finance Ministry for necessary regularization. Under the guidelines, the department has issued new rules, which will be applicable for National Savings Scheme, Public Provident Fund (PPF) and Sukanya Samriddhi Account.
New rules for two NSS-87 accounts opened before DG’s order (2 April 1990): The first account opened will be charged the prevailing scheme rate, while the second account will be charged the prevailing POSA rate plus 200 bps on the outstanding balance. The deposits in both these accounts should not exceed the annual limit. If excess deposits are made, it will be refunded without interest. Zero percent interest rate will be applicable on both accounts from 1 October 2024. For PPF account opened in the name of a minor: POSA interest will be paid for such irregular accounts till the person (minor) becomes eligible to open the account. When the person attains the age of 18 years, the applicable interest rate will be paid thereafter. The maturity period will be calculated from the date on which the minor attains majority and becomes eligible to open an account. In case of holding more than one PPF account, the primary account will get interest at the scheme rate, provided the deposit amount is within the maximum limit applicable for each year. The balance of the second account will be merged into the first account, provided the primary account remains within the projected investment limit every year. After the merger, the primary account will continue to earn interest at the prevailing scheme rate. Any additional account other than the primary and the second account will attract zero percent interest rate from the date of opening the account.
