The government has relaxed rules for small savings schemes, including the Public Provident Fund (PPF) and Senior Citizens Savings Scheme. Under the new rule, there will be three months to open an account under the Senior Citizen Savings Scheme, whereas at present, this period is one month.
What’s In The Notification
According to the notification issued by the government, a person can open an account under the Senior Citizens Savings Scheme within three months from the date of retirement. Interest will be paid at the rate fixed for the scheme on the maturity or extension maturity date. Some changes have been made regarding the premature closure of accounts in the case of the Public Provident Fund, i.e. PPF. The notification said this scheme may be called the Public Provident Fund (Amendment) Scheme, 2023.
Changes In These Schemes Also
Some changes have been made to the premature withdrawal rules under the National Savings Fixed Deposit Scheme. Suppose the amount deposited in an account with a tenure of five years is prematurely withdrawn after four years from the account opening date. In that case, interest will be payable at the rate applicable to Post Office Savings Account.
As per the existing rules, interest is given at the acceptable rate for a three-year fixed deposit account in such a situation. Let us tell you that the Department of Economic Affairs manages small savings schemes under the Finance Ministry.
