Government Updates Rules for PPF and Sukanya Samriddhi Yojana: Take Action Before October 1 to Avoid Account Closure
The government has introduced significant changes to the rules governing Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) accounts. These changes are aimed at regularizing older accounts, accounts opened in the names of grandparents, and updating regulations for Non-Resident Indian (NRI) account holders. It is crucial to take action before October 1, 2024, to avoid account closure or loss of benefits.
Key Changes for PPF Accounts
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Impact on NRI Account Holders: NRIs with PPF accounts will now receive interest at the rate of a Post Office Savings Account (POSA) until September 30, 2024. However, starting from October 1, 2024, the interest rate on these accounts will drop to 0%. This means that NRI account holders who do not update their PPF accounts as per the new guidelines will no longer earn any interest. To prevent this, it is essential for NRIs to update their account information before the deadline.
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New Rules for PPF Accounts in the Name of Minors: According to the updated guidelines, the POSA interest rate will be applied to PPF accounts opened in the name of minors until they reach the age of 18. Once the child turns 18, the standard PPF interest rate will be applied, and the maturity period will be recalculated from that point.
Additionally, if an individual holds more than one PPF account, the regular interest rate will only apply to the primary account. Any other PPF accounts will be merged with the main account, and the extra balance will receive 0% interest.
Changes to Sukanya Samriddhi Yojana (SSY)
The new rules also impact Sukanya Samriddhi Yojana accounts. Accounts that were previously opened by grandparents without naming the child's parents must now be transferred to the legal guardians or natural parents. This step is being taken to ensure better supervision, accountability, and transparency in the management of these accounts, reducing the possibility of any discrepancies or misuse.
To avoid any disruptions, it is important for account holders to comply with the updated rules and make necessary changes before October 1, 2024. Failure to do so could result in the closure of accounts or the loss of interest earnings. Stay informed and take timely action to protect your investments!
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