Division of Financial Affairs has issued new tips for PPF and SSY accounts. What are these new PPF and SSY Guidelines Efficient From 1st October 2024?
All these new guidelines are relevant to PPF and SSY accounts that are accounted for with out following the right guidelines.
New PPF and SSY Guidelines Efficient From 1st October 2024
a) A couple of minor account – As per the rule, you might be allowed to open just one PPF account within the identify of the minor, and a joint account just isn’t doable. Nonetheless, by surpassing this rule, when you have opened a number of accounts in your minor child’s identify, then for all such irregular accounts Publish Workplace Financial savings Account curiosity will likely be payable till the minor turns into the main (18 Yrs).
The maturity interval for such accounts will likely be calculated from the date the minor turns into an grownup, that’s, the date from which the person turns into eligible to open the account.
b) A couple of PPF Account – The first account will earn the scheme charge of curiosity topic to the deposit being throughout the ceiling relevant for annually (Rs.1,50,000). (The Major Account is without doubt one of the two accounts chosen by the investor in any Publish Workplace/ company financial institution the place the investor prefers to proceed with the account upon regularisation).
The stability quantity within the second account shall be merged with the primary account topic to the first account remaining throughout the relevant funding ceiling in annually. Publish-merger, the first account will proceed to benefit from the prevailing scheme charge of curiosity. Extra stability within the second account, if any, shall be refunded with Zero % charge of curiosity.
Any further accounts past the first and second accounts will earn a zero % charge of curiosity from the date of opening of that account.
c) Extension of PPF account by NRI – If in case you have a PPF account however you prolonged it as Kind H (extension), it won’t particularly asking residential standing doesn’t imply you might be eligible for an extension of the PPF account. Therefore, for such unauthorized prolonged accounts the submit workplace financial savings account rate of interest will likely be payable (I believe as much as the maturity (15 years) of the relevant PPF charge however from the extension interval the financial savings account rate of interest) until thirtieth September 2024. After that, such accounts won’t earn any curiosity.
d) SSY Accounts opened by grandparents – If accounts are opened by grandparents (who’re aside from authorized guardians), the guardianship shall be transferred to an individual entitled underneath the regulation in pressure, that’s, to the pure guardian (alive dad and mom) or Authorized Guardian.
e) If greater than two SSY accounts are opened – As per the rule, one can open a most of two accounts inside a household (for 2 kids). Nonetheless, when you have opened greater than two accounts inside a household, then the irregular accounts will likely be closed by treating them as accounts opened in contravention of the scheme tips.
Conclusion – Earlier there was no such mechanism to trace such unauthorized accounts. Now resulting from PAN and Aadhaar linkage, it’s simple to trace all accounts. Therefore, it’s higher to stay to the principles and rules set by the federal government for opening and working of each PPF and SSY accounts.