look news india
The government has recently made some important changes in the rules of small savings accounts. Through the new rules, old accounts, accounts running in the name of grandparents are to be regularized. The government changes will impact NRI i.e. Non-Resident Indian account holders and Sukanya Samriddhi Yojana (SSY) accounts.
PPF accounts will be affected
NRIs having Public Provident Fund (PPF) accounts are getting interest at the Post Office Savings Account (POSA) interest rate. This interest rate will remain applicable till 30 September 2024. But from October 1, 2024, the interest rate on these accounts will become 0%. This means that if NRI account holders do not update their PPF account as per the rules, they will not get any interest. To avoid this change, NRI account holders are advised to update their account information timely.
New rules for PPF accounts
According to the new guidelines, the POSA interest rate on PPF accounts opened in the name of minors will remain applicable until the child turns 18 years old. After 18 years of age, the standard PPF interest rate will be applicable and the maturity of the account will be calculated from that time onwards. Moreover, if one has more than one PPF account, the interest rate of the scheme will be applicable only on the main account. Whereas, the amount deposited in other accounts will be transferred to the primary account. 0% interest will be given on the additional amount.
Impact on Sukanya Samriddhi Yojana (SSY)
New rules will also be applicable on Sukanya Samriddhi Yojana. Now the accounts which were opened by the grandparents without the name of the parents, it will be necessary to transfer them in the name of the legal guardian or natural parents. The move is aimed at ensuring transparency and proper monitoring of accounts. So that any kind of disturbance can be avoided in future.