It should be noted that the Ministry of Finance has the authority to regulate small savings accounts. All irregular accounts must be referred to this division for regularization by the Ministry of Finance, in accordance with the regulations.
The following six categories have been identified and the following relevant guidelines have been issued: The main categories include irregular NSS accounts, FPP accounts opened in the name of a minor, more than one PPF account, extension of PPF account by Non-resident immigrantand regularization of Sukanya Samriddhi Account (SSA) opened by grandparents who are not guardians.
1) Irregular NSS accounts: They have been determined to be of the following types:
· Two NSS-87 Accounts Opened before DG order
· Two NSS-87 accounts were opened after the DG order
· In case of more than two NSS-87 accounts
(a). Two NSS-87 accounts opened prior to Order No. 35-19/9GSB-lll of the General Directorate of Post Offices, dated 02.04.1990:
(i) The oldest open account will get the current plan rate.
(ii) The second account (opened after the first) will receive the current POSA rate plus 200 basis points on the outstanding balance.
(iii) Points (i) and (ii) shall be subject to the following conditions:
(a). The accumulated deposits in both accounts taken together must not exceed the applicable deposit limits for each year.
(b) Excess deposits (if any) will be refunded to the investor without any interest.
(iv) Items (i) to (iii) are in the nature of a one-time special dispensation permitted to NSS-87 investors till 30th September 2024 from the date of the OM dated 12th July 2024 issued by the Ministry of Finance.
(v). Beginning October 1, 2024, both accounts will bear a zero percent interest rate.
(b) Two NSS-87 accounts opened after DG Posts Order No. 35-19/90-SB-lll dated 02.04.1990:
(i) The account opened first and oldest will get the current scheme
(ii). The second account (opened after the first) will receive the prevailing POSA rate on the outstanding balance, (iii). Items (i) and (ii) are subject to the following conditions:
(a). The accumulated deposits in both accounts taken together must not exceed the applicable deposit limit for each year.
(b) Excess deposits (if any) shall be refunded without any interest to the investor.
(iv) Items (i) to (iii) are in the nature of a one-time special dispensation for NSS-87 investors till 30th September 2024 from the date of the OM dated 12th July 2024 issued by the Ministry of Finance.
(v). Beginning October 1, 2024, both accounts will bear a zero percent interest rate.
(c). In case of more than two NSS-87 accounts
The principles established for the two accounts opened before/after Order No. 35-19/90-SB-lll of the General Directorate of Post Offices of 2 April 1990 will apply. In the case of the third account, which is more irregular, no interest will be paid and the principal will be refunded to the investor.
2. PPF account opened in the name of a minor:
(a). POSA interest shall be paid on such irregular accounts until the person (minor) becomes eligible to open an account, i.e. until he or she turns 18 years of age. Thereafter, the applicable rate of interest shall be paid.
(b) The maturity period of such accounts shall be calculated from the date on which the minor reaches the age of majority, that is, the date from which the individual acquires the right to open the account.
3. More than one PPF account:
(a). The principal account will earn the rate of interest under the plan, provided the deposit is maintained within the applicable limit for each year. (The principal account is one of the two accounts chosen by the investor at any post office or agency bank in which the investor prefers to continue the account after regularization.)
(b) The balance of the second account will be merged with the first account, provided that the main account remains within the estimated investment limit for each year. After the merger, the main account will continue to enjoy the rate of interest prevailing under the plan. The excess balance in the second account, if any, will be repaid at a rate of interest of zero percent.
(c). Any additional account to the primary account and the second account will accrue a zero percent interest rate from the date of opening of that account.
4. Extension of PPF account by NRI
Only for those active NRI PPF accounts opened under the Public Provident Fund (PPF) Scheme, 1968, where Form H did not specifically ask for the residency status of the account holder, the POSA rate of interest will be given to the account holder (Indian citizen who became NRI during the tenure of the Account) till 30th September 2024. In this case, such account will earn zero percent interest.
(5) Small savings account opened in the name of a minor (except PPF and SSY)
These irregular accounts can be regularized with simple interest. The interest rate for calculating the simple interest on the account must be the interest rate in force at the POSA.
6. Regularization of Sukanya Samriddhi Account (SSA) opened by grandparents who are not guardians.
(a). In the case of accounts opened under the guardianship of grandparents (other than the legal guardian), guardianship will be transferred to a person entitled under current law, i.e. the natural guardian (living parents) or the legal guardian.
(b) If more than two accounts are opened in a family in violation of paragraph 3 of the Sukanya Samriddhi Accounts Scheme, 2019, then the irregular accounts shall be closed by treating them as open accounts.
ed in contravention of the plan’s guidelines.
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