In the notification issued regarding Public Provident Fund (PPF) account, it has been said that there have been some changes regarding premature closure of the account (PPF Account).
The Government of India has changed the rules of its small saving schemes like PPF, Senior Citizen Saving Scheme (SCSS) and Time Deposit account. The government has relaxed its norms to provide more convenience to the customers. The Government of India currently offers 9 types of small saving schemes. Account holders are now going to have more convenience than before in withdrawing the amount invested in these options. Let us know what changed for which scheme.
New rule of PPF
In the notification issued regarding Public Provident Fund (PPF) account, it has been said that there have been some changes regarding premature closure of the account (PPF Account). According to Livemint news, the notification states that this scheme can be called Public Provident Fund (Amendment) Scheme, 2023. Currently 7.1% interest rate is being offered in PPF.
Senior Citizen Savings Scheme
For Senior Citizen Saving Scheme (SCSS) in post office or bank, after the new change, now three months time is available to open the account as compared to the existing one month. The notification states that a person can open an account under the Senior Citizen Saving Scheme within three months from the date of receipt of retirement benefit benefits and can provide proof of the date of disbursement of such retirement benefits. Currently 8.2% interest rate is being offered under SCSS account.
Time Deposit Scheme
According to the new rule, if the amount deposited in a five-year account is prematurely withdrawn after four years from the date of account opening, interest will be payable at the rate applicable to post office savings account. As per the existing rules, if a five-year time deposit account is closed after four years from the date of deposit, the rate admissible for a three-year time deposit account will be applicable for calculation of interest.
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