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Small Savings Schemes: The government has relaxed rules for some small savings schemes, including the Public Provident Fund (PPF) and Senior Citizen Savings Scheme. Under the new rule, there will be three months for opening an account under the Senior Citizen Savings Scheme, as against one month at present.
What’s in the notification: As per the notification issued by the government, an individual can open an account under Senior Citizen Savings Scheme within three months from the date of retirement. Interest will be paid at the rate fixed for the scheme on the maturity date or extension maturity date. In case of Public Provident Fund i.e. PPF, some changes have been made regarding premature closure of accounts. The notification states that the scheme may be called the Public Provident Fund (Amendment) Scheme, 2023.
Also changes in these plans: Apart from this, some changes have been made in the premature withdrawal rules under the National Savings Fixed Deposit Scheme. If the amount deposited in the five-year term account is withdrawn prematurely after four years from the date of opening of the account, interest will be payable at the rate applicable to Post Office Savings Account.
As per the existing rules, in such a situation, interest is paid at the rate admissible for a three-year fixed deposit account. Let us tell you that small savings schemes are managed by the Department of Economic Affairs under the Ministry of Finance.