Under the new rule of the Central Government, there will be a time of three months to open an account under the Senior Citizens Savings Scheme, whereas at present this period is of one month.
The government has relaxed rules for some small savings schemes, including the Public Provident Fund (PPF) and Senior Citizens Savings Scheme. Under the new rule, there will be three months time to open an account under Senior Citizen Savings Scheme, whereas at present this period is one month.
What’s in the notification: According to the notification issued by the government, a person can open an account under the Senior Citizens 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. Some changes have been made regarding premature closure of accounts in the case of Public Provident Fund i.e. PPF. The notification said that this scheme may be called the Public Provident Fund (Amendment) Scheme, 2023.
Changes in these schemes also: Apart from this, some changes have been made in the rules of premature withdrawal under the National Savings Fixed Deposit Scheme. If the amount deposited in an account with a tenure of five years is prematurely withdrawn after four years from the date of account opening, interest will be payable at the rate applicable to Post Office Savings Account.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, in such a situation, interest is given at the acceptable rate 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 Finance Ministry.
