Small savings schemes are investment options overseen by the Department of Economic Affairs (DEA) under the finance ministry.
The government has recently relaxed the norms for various small savings schemes, including the Public Provident Fund (PPF) and Senior Citizen’s Savings Scheme (SCSS).
Small savings schemes are investment options overseen by the Department of Economic Affairs (DEA) under the finance ministry.
At present, the government provides nine types of small saving schemes, which include Recurring Deposit (RD), PPF, Sukanya Samriddhi Yojana (SSY), Mahila Samman Saving Certificate, Kisan Vikas Patra, National Savings Certificate (NSC), and Senior Citizen Savings Scheme.
What Has Changed?
Senior Citizen’s Savings Scheme (SCSS)
For the Senior Citizen’s Savings Scheme, the new norms provide three months to open an account against one month’s time at present.
As per the gazette notification dated November 9, an individual can open an account under the Senior Citizen’s Savings Scheme within three months from the date of receipt of the retirement benefits and proof of the date of disbursal of such retirement benefits.
According to the notification, interest on the deposit in an account opened under the senior citizen’s savings scheme will be calculated based on the applicable scheme rate on either the maturity date or the extended maturity date.
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Public Provident Fund (PPF)
The notification has introduced changes related to the premature closure of accounts for the PPF. The notification designates these modifications as the Public Provident Fund (Amendment) Scheme, 2023. It outlines adjustments specifically related to premature withdrawals under the National Savings Time Deposit scheme.
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Post Office Savings Account
The notification specifies that if a deposit in a five-year account is withdrawn prematurely after four years from the date of opening the account, the interest payable would be at the rate applicable to the Post Office Savings Account.
Under the existing norms, if a five-year time deposit account is closed after four years from the date of deposit, the interest would be calculated at the rate applicable for a three-year time deposit account.
(With PTI inputs)
