New Delhi: The finance ministry in a notification notified changes that will come into effect from October 1, 2024, in key POffice Small Savings Scheme, namely, Sukanya Samriddhi Account Scheme (SSAS) and Personal Provident Fund (PPF).
What are the changes to NSS-87 accounts?
The finance ministry has notified that for NSS accounts opened prior to April 2, 1990, the primary account will receive existing interest while secondary accounts will receive 0 per cent interest from October 1, 2024, compared to 2 per cent as of now.
For accounts opened after April 2, 1990, the primary account and secondary account will receive 0 per cent interest. If an individual holds more than 2 accounts, the 3rd and 4th accounts will not receive any interest and the principal will be returned to the account holder.
PPF account rule changes
PPF minor accounts will receive the same rate of interest as the POST Office Savings Account. On turning 18, the account will receive the prevailing PPF interest rate. For more than one PPF account, the primary account will receive the prevailing interest rate while the secondary account balance will be merged with the primary account. NRI PPF accountholders will receive the prevailing interest rate until September 30, 2024. This interest rate will turn zero from October 1, 2024.
Sukanya Samriddhi Account Scheme rule changes
Under the SSAS, a minor’s grandparents will not remain legal guardians. For accounts opened by grandparents, the guardianship will have to be transferred to the parents. Any extra accounts opened under this scheme will be closed. Irregular accounts opened in a minor’s name will receive interest equivalent to Post Office Savings Accounts and regularised in that manner.
Guidelines for Post Offices
The finance ministry notified that post offices will have to verify the PAN and AAdhaar details of existing account holders. Post offices are required to update their systems before submitting a regularisation request.
Small Savings Scheme rules: The finance ministry has introduced key changes in PPF and Sukanya Samriddhi Scheme from October 1, 2024. Check here to know more Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
