New Rules Alert: What You Need to Know About PPF, Sukanya Samriddhi, and NSS Changes Starting October 1!

Starting October 1, new regulations will come into effect for various small savings schemes including the Public Provident Fund (PPF), Sukanya Samriddhi Scheme, and National Savings Scheme (NSS). These changes aim to regularize irregular accounts and improve compliance. Here’s a comprehensive breakdown of the new guidelines to help you navigate the updates and ensure your savings accounts remain compliant and beneficial.

Regulation of Irregular Accounts: The government will regularize small savings accounts that have been opened irregularly. Any accounts opened contrary to the rules will be discontinued.

NSS Accounts Policy: If an individual has opened two NSS accounts, only the first account will be recognized, while the second account will accrue interest at the rate applicable to Post Office savings accounts, along with an additional 2% interest.

Interest on NSS: Only the amount within the annual deposit limit for NSS accounts will earn interest. Any excess funds will be returned without interest.

PPF Accounts for Minors: PPF accounts opened in the name of minors will not receive regular interest until the child turns 18. Until then, these accounts are classified as irregular, attracting only the savings account interest rate.

Multiple PPF Accounts: Individuals can maintain only one PPF account. If multiple accounts are opened, only the primary account will earn regular interest, while others will be merged with it.

Investment Limit for PPF: The annual investment limit for PPF is ₹1.5 lakh. If total investments exceed this limit across multiple accounts, the excess amount will be returned without interest.

NRIs and PPF: Non-Resident Indians (NRIs) cannot open new PPF accounts under the current regulations. Any accounts opened in the past remain classified as irregular and will attract only savings account interest.

Sukanya Samriddhi Accounts: Accounts for the Sukanya Samriddhi scheme can only be opened by parents or legal guardians. If a grandparent opens an account, it must be transferred to a legal guardian's name.

Stay Updated: Ensure that your accounts adhere to the new guidelines to avoid any penalties and to maximize your savings benefits.