The Government Savings Promotion Act of 1873 will be modified by the government to make deposits easier to withdraw.
If an account holder who has contributed money to minor savings programmes like the Senior Citizen Savings Scheme and the Sukanya Samriddhi Yojana passes away without appointing a nominee, their heirs will have six months to request the money by submitting the necessary paperwork. Documents must currently be filed within three months following the account holder’s passing. The government has also made action to simplify the withdrawal process in addition to this. The Government Savings Promotion Act of 1873 will be modified by the government to make deposits easier to withdraw. The Finance Bill 2023 contains the proposed change.
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There is no issue taking the money if the Small Savings Scheme account holder declares his nominee. However, a difficulty occurs if the account holder does not specify to whom the funds in his account should be distributed after his passing. The money belongs to the account holder’s legitimate heirs. To demonstrate their eligibility, they must present the decedent’s will or another document. Obtaining this documentation takes a lot of time. Many heirs are also denied access to the funds if these are not made within three months of the account holder’s passing.
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The Government Savings Promotion Act now contains a new section 4A. This states, “If a depositor dies without making a nomination, his will, letter of administration of the estate, succession certificate issued under the Indian Succession Act, 1925, or legal heir certificate issued by the Department of Revenue to the authorised officer, shall be conclusive of the succession of the depositor’s estate.” The money in the account will be given to the person legally entitled to it if it is provided within six months of the death. The money put in the account will be handed to the individual or people whose name(s) appear on the succession certificate.
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The new provisions will apply to many schemes like Post Office Savings Account, National Savings Monthly Income Account, National Savings Recurring Deposit, Sukanya Samriddhi Account, Senior Citizen Savings Scheme, Kisan Vikas Patra and Public Provident Fund Scheme.
