The Ministry of Finance has issued updated guidelines to regularize irregular accounts under various National Small Savings Schemes, including NSS-87, PPF for minors, and Sukanya Samriddhi accounts. These guidelines, effective from October 1, 2024, aim to streamline the handling of such accounts in post offices and financial institutions. Here’s what you need to know about the changes:
Types of Irregular Accounts:
- NSS-87 Accounts
- Accounts opened before April 2, 1990: The first account will earn the prevailing scheme rate, while the second account will receive a higher rate, with total deposits not exceeding the annual limit.
- Accounts opened after April 2, 1990: The first account earns the scheme rate, and the second account earns a standard rate, subject to deposit limits.
- From October 1, 2024, these accounts will no longer earn interest.
- PPF Accounts for Minors
- Accounts will earn POSA (Post Office Savings Account) interest until the minor turns 18, after which the applicable PPF interest rate will apply.
- Multiple PPF Accounts
- The primary account will earn the scheme rate, while excess balances in secondary accounts will earn zero interest.
- NRI PPF Accounts
- If the account holder becomes an NRI during the account’s term, POSA interest will apply until September 30, 2024, after which the account will earn zero interest.
- Small Savings Accounts for Minors (Excluding PPF and SSA)
- These accounts will earn simple interest at the POSA rate.
- Sukanya Samriddhi Accounts Opened by Grandparents
- Guardianship will be transferred to the legal guardian, and any extra accounts in the family will be closed.
These updates aim to ensure compliance and efficiency in handling irregular accounts across National Small Savings Schemes.
