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Small Savings Schemes: Three major changes are going to be made in the Public Provident Fund (PPF) scheme managed under the small savings schemes of the post office. This change will be effective from October 1, 2024 i.e. next month. The Finance Ministry has issued guidelines in this regard. This is a scheme that comes with a maturity period of 15 years and can make you a millionaire in the long term. Let us know about this scheme in detail today.
On August 21, 2024, the Department of Economic Affairs of the Union Finance Ministry has issued guidelines on the new rules, under which three new rules of PPF will be implemented. Apart from this, the rules of Sukanya Samriddhi Yojana and NSC will also change. These guidelines explain in detail the regularization of irregular accounts in three different cases from minors to NRIs.
First rule- PPF account should be opened in the name of a minor
Interest on such irregular accounts will be paid at the Post Office Savings Account (POSA) rate till the person becomes eligible to open the account. That is, till the person turns 18 years old, after that interest rate will be paid on PPF. The maturity period will be calculated from the date on which the minor becomes an adult. That is, from that date the person becomes eligible to open the account.
Second rule- More than one PPF account
The primary account will get interest as per the scheme, provided the amount deposited is within the maximum limit applicable for each year. The balance in the second account will be credited to the first account. Any additional account other than the primary and secondary accounts will get 0 (zero) percent interest from the date of opening the account. That is, even if more than one account is opened, interest under the PPF scheme will be available only on one account.
Change 3 – Extension of PPF account by NRI
Only active NRI PPF accounts are opened under PPF, 1968 where residential status of the account holder is not specifically asked in Form H. Account holders (Indian citizens who became NRIs during the period of account opening) will be paid interest at POSA rate till 30 September 2024. Thereafter, 0 (zero) interest rate will be applicable on these accounts from 1 October.