Government introduced New Rules for PPF, Sukanya Accounts, Post Office Schemes, Check New Rules Here

The Department of Economic Affairs, under the Ministry of Finance, has introduced new rules to regularize irregularly opened accounts under National Small Savings (NSS) schemes via Post Offices. These changes were announced in a circular dated August 21, 2024.

Key Points of the New Rules

The Ministry of Finance oversees the regulation of small savings accounts. According to the new rules, all irregular accounts need to be referred to this department for regularization. The guidelines cover six main categories of irregular accounts:

1. Irregular NSS Accounts
2. PPF Accounts Opened in the Name of a Minor
3. Multiple PPF Accounts
4. Extension of PPF Accounts by NRIs
5. Regularization of Sukanya Samriddhi Accounts (SSA) Opened by Grandparents

Here’s a breakdown of the guidelines for each category:

Irregular NSS Accounts

• Two NSS-87 Accounts Opened Before DG Order (dated 02.04.1990):
• The first account will earn the prevailing scheme rate.
• The second account will earn the prevailing POSA rate plus an additional 200 basis points.
• Both accounts must not exceed annual deposit limits. Excess deposits will be refunded without interest.
• This special dispensation is available until September 30, 2024. After that, both accounts will earn zero percent interest.
• Two NSS-87 Accounts Opened After DG Order:
• The first account will earn the prevailing scheme rate.
• The second account will earn the prevailing POSA rate.
• Both accounts must not exceed annual deposit limits. Excess deposits will be refunded without interest.
• This special dispensation is available until September 30, 2024. After that, both accounts will earn zero percent interest.
• More Than Two NSS-87 Accounts:
• The rules for two accounts apply. Any additional accounts will earn zero percent interest, and only the principal will be refunded.

PPF Accounts Opened in the Name of a Minor

• Interest will be paid at the POSA rate until the minor turns 18. After that, the account will earn the applicable interest rate.
• The maturity period will be calculated from the date the minor turns 18.

More Than One PPF Account

• The primary account will earn the scheme rate if deposits are within annual limits.
• The balance of any secondary account will be merged with the primary account. Excess balance will be refunded with zero percent interest.
• Any additional accounts beyond the primary and secondary accounts will earn zero percent interest from the date of opening.

Extension of PPF Accounts by NRIs

• For PPF accounts where NRIs were not required to declare their residency status, interest at the POSA rate will be paid until September 30, 2024. After that, the account will earn zero percent interest.

Small Savings Scheme Accounts Opened in the Name of a Minor (Except PPF and SSY)

• These accounts can be regularized with simple interest at the prevailing POSA rate.

Sukanya Samriddhi Accounts (SSA) Opened by Grandparents

• Accounts opened under the guardianship of grandparents (who are not legal guardians) will be transferred to a legal guardian (the child’s parents or a legal guardian).
• If more than two accounts are opened in a family, any irregular accounts will be closed as they violate scheme guidelines.

These new rules aim to bring clarity and regularization to irregular accounts, ensuring compliance with the NSS scheme guidelines.