Do you need to provide Aadhaar to invest in small savings schemes such as the Public Provident Fund ( PPF ), Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), etc.? The answer is affirmative. When opening a new account in any of these small savings schemes, investors are required to furnish their Aadhaar card details.
According to a notification dated April 3, 2023, issued by the Ministry of Finance , under the Government Savings Promotion General (Amendment) Rules, 2023, individuals must also submit proof of identity and address to the Accounts Office. Specifically, this includes “the Aadhaar Number issued by the Unique Identification Authority of India.”
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What if you do not have an Aadhaar number?
In cases where an individual does not possess an Aadhaar number, the notification outlines the procedure: the individual must enroll in the Aadhaar scheme and use the proof of enrollment to open a small savings scheme account.
“Where the Aadhaar Number has not been assigned to an individual. he shall furnish proof of application of enrollment for an Aadhaar at the time of opening an account and the account holder shall furnish the Aadhaar number to the Account Office within a period of six months from the date of opening of account for linking the account with Aadhaar Number,” stated the Ministry of Finance in the notification.
Furthermore, the notification specifies the consequence of failing to submit the Aadhaar number within the stipulated period: “And in the event of failure of the depositor to submit the Aadhaar number within the specified period of six months, his account shall cease to be operational till the time he submits the Aadhaar Number to the Accounts Office.”
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Do investors require PAN for investing in small savings schemes ?
According to the notification, if an individual has not provided their PAN (Permanent Account Number) at the time of opening a small savings scheme account, they must do so to the Accounts office of the respective financial institution within two months from the occurrence of specific events:
(i) the balance in the account exceeds fifty thousand rupees at any point of time,
(ii) the aggregate of all credits in the account in any financial year exceeds one lakh rupees, or
(iii) 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 the failure of the depositor to submit the Permanent Account Number 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 Account Office,” emphasized the Ministry of Finance in the notification.
