These rules, which will come into force on 1 October 2024, aim to address and rectify discrepancies in account opening.
Here’s what you need to know:
Key changes:
NSS-87 Accounts
Accounts opened before April 2, 1990
He first account will earn the scheme’s current rate.
The second account will earn the current Post Office Savings Account (POSA) rate plus 2% of the balance.
Starting October 1, 2024, both accounts will earn 0% interest.
Accounts opened after April 2, 1990
The first account will get the current rate of the scheme.
The second account will receive the current POSA rate.
Starting October 1, 2024, both accounts will earn 0% interest.
More than two accounts
No interest will be paid on the third and additional accounts. The principal will be refunded.
Public Pension Fund (PPF) Accounts
Accounts opened in the name of a minor
POSA interest will be paid until the minor turns 18. After that, the applicable interest rate will apply.
Maturity will be computed from the minor’s 18th birthday.
More than one PPF account
The main account will get the plan rate if the deposits are within the annual limit.
The balance of the secondary accounts will be merged into the main account. Excess amounts will be refunded with 0% interest.
Accounts in addition to two will earn 0% interest from their opening date.
PPF Account Extensions for NRIs
NRIs active with PPF Accounts that did not require residency details will accrue POSA interest until September 30, 2024. After this date, interest will be 0%.
Accounts opened in the name of a minor
Irregular accounts can be regularized with simple interest at the current POSA interest rate.
Sukanya Samriddhi Beads
Accounts opened by grandparents (not legal guardians) must transfer guardianship to a legal guardian or biological parents.
If more than two accounts are opened in violation of the plan guidelines, the additional accounts will be closed.
Required actions
Verification
All post offices must collect PAN and Aadhaar details of account holders or guardians if not already available and update the system before sending regularisation applications.
Post offices must notify account holders of these changes and provide guidance on how to comply.
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