New Delhi: Those who have invested in small saving schemes such as PPF, NSC, or SCSS, here’s a big update for you. The deadline to link Aadhaar card and PAN with these small saving schemes will end on September 30, which is just 10 days away.
In a notification on March 31, 2023, the Ministry of Finance has made it a mandatory requirement of both Aadhaar and PAN for PPF, NSC, and various other small savings schemes. Moreover, the notification specified that existing investors must also provide their Aadhaar numbers to comply with this requirement.
As per the notification, the investors in small savings schemes such as Senior Citizens Savings Scheme (SCSS), Public Provident Fund (PPF), National Savings Certificate (NSC), and other post office schemes need to confirm the submission of their Aadhaar number to their post office or bank branch no later than September 30, 2023.
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Why Accounts Will be Frozen?
If investors fail to link their Aadhaar and PAN with the PPF, NSC, or SCSS within the deadline, it will result in the freezing of their investments in these small savings schemes. Moreover, the investors may not receive benefits such as interest returns if this is not done.
Investors must submit the Aadhar number and PAN for the purpose of opening an account under any of the schemes in the Government Savings Promotion Act, when certain conditions are satisfied.
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Why Aadhaar Should Be Linked to PPF, NSC, SCSS Accounts?
It is a requirement from the Ministry of Finance which has mandated the requirement linking of both Aadhaar and PAN for PPF, NSC, and various other small savings schemes. The ministry also said existing investors must also provide their Aadhaar numbers to comply with this requirement.
“If a depositor has already opened an account and has not submitted his Aadhaar number to the Accounts Office, he shall do so within a period of six months with effect from the 1st day of April 2023,” the ministry said.
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What Happens If Aadhaar, PAN Not Linked to PPF, NSC, SCSS Accounts?
- The due interest will not be credited to the investor’s bank account.
- Individuals might face limitations in making deposits into their PPF or Sukanya Samriddhi accounts.
- The maturity amount will not be credited to the investor’s bank account.
