• Source:JND
Add as a preferred

The Department of Economic Affairs, Ministry of Finance has released new guidelines for the National Small Savings (NSS) schemes that are operated through post offices. The guidelines aim to regularize irregularly opened accounts under these schemes. The new guidelines will be implemented on October 1, 2024.

According to the circular issued, six categories have been identified, and guidelines have been issued accordingly. 

NSS-87 accounts

Accounts opened before April 2, 1990- The existing scheme rate will apply to the first account. The balance in the second account will receive the current Post Office Savings Account (POSA) rate plus 2% interest. From October 1, 2024, both accounts will earn 0% interest.

Accounts opened after April 2, 1990- The existing scheme rate will apply to the first account and the current POSA rate will apply to the second account. Both accounts will earn 0% interest from October 1, 2024.

More than two accounts- As per guidelines, third and additional accounts will earn no interest, and the principal amount will be refunded.

Public Provident Fund (PPF) accounts

Accounts opened in the name of a minor- POSA interest will be available till the minor turns 18 then after the rate, which is applicable for PPF will apply. The maturity will be calculated from the day when the minor turns 18.

More than one PPF account- If the deposit amount is within the annual limit, the rate in effect for the scheme on the primary account will apply. The balance of any secondary account will be merged with the primary account and the excess amount will be refunded with 0% interest. As per guidelines, more than two additional accounts will earn 0% interest from the date of their opening.

Extension of PPF accounts by NRIs

Active NRIs who have PPF accounts that do not require residency details will earn POSA interest till September 30, 2024. After that, the interest will be 0%.

Also Read RBI To Launch Unified Lending Interface To Ensure Frictionless Flow Of Credit; Details

Sukanya Samriddhi Accounts

In the case of accounts opened by grandparents (not legal guardians), guardianship has to be transferred to the legal guardian or biological parents.

If a customer opens more than two accounts in violation of the scheme guidelines, the additional accounts will be closed.

Accounts opened in the name of a minor- Irregular accounts can be regularized with simple interest at the prevailing POSA rate.

Verification

All post offices are directed to collect PAN and Aadhaar details from account holders or guardians, if not already available. The system has to be updated before submitting the regularization request.

The government has asked Post offices to inform the account holders about these changes and guide them on how to comply with the rules.

Also Read: Sebi Issues Show-Cause Notice To Paytm Over ESOPs Granted To Vijay Shekhar Sharma; Stock Tumbles 4%