Permanent Account Number (PAN) and Aadhaar will now be mandatory for investments in small savings schemes like Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Post Office Savings Scheme, Senior Citizens saving scheme (SCSS), etc. According to a Finance Ministry notification issued on March 31, 2023, these changes have been notified as part of KYC (Know Your Customer) for small saving schemes.
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Earlier, investment in small saving schemes was possible without provide Aadhaar details. But, Aadhaar is now compulsory for making investment in government-backed small saving schemes. The recent notification also clarified that an investor must furnish PAN card on investment above a certain threshold.
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As per the Finance Ministry’s notification, small savings subscribers will have time till 30th September 2023 to submit Aadhaar, if not provided earlier while opening PPF, SSY, NSC, SCSS or any other small savings account. New subscribers who wish to open any of the small saving scheme without Aadhaar will have to furnish Aadhaar number within six months of account opening. One can also submit Aadhaar enrolment number if he or she is yet to get Aadhaar number assigned from the UIDAI.
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The notification also said that “in the event of the failure of the depositor to submit the PAN within the specified period of two months”, the account of the person will be freezed.
The notification went on to add that PAN has to be submitted at the time of small savings account opening. In case the PAN is not submitted at the time of account opening, it must be submitted within two months of account opening in following cases:
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– The balance at any point of time in the account exceeds fifty thousand rupees; or
– The aggregate of all credits in the account in any financial year exceeds one lakh rupees;
– The aggregate of all withdrawals and transfers in a month from the account exceeds ten thousand rupees.
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“In the event of failure of the depositor to submit the Permanent Account Number (PAN) within the specified period of two months, his account shall cease to be operational till the time he submits the Permanent Account Number to the Accounts Office,” the notification added.
