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the notification specified that existing investors must also provide their Aadhaar numbers to comply with this requirement. (Representative image)
In April, the Finance Ministry asked that small savings account holders submit their Aadhaar details within a six-month timeframe.
Investors in small savings schemes like the Senior Citizens Savings Scheme (SCSS), Public Provident Fund (PPF), National Savings Certificate (NSC), and other post office schemes need to confirm the submission of their Aadhaar number to their post office or bank branch no later than September 30, 2023.
Failure to provide the Aadhaar number by this deadline will result in the freezing of your investments in these small savings schemes until the Aadhaar number is furnished. Additionally, investors may not receive benefits such as interest returns.
Understanding the Reasons Behind PPF, NSC, and SCSS Account Freezing
The Ministry of Finance, through a notification dated March 31, 2023, has mandated the requirement of both Aadhaar and PAN for PPF, NSC, and various other small savings schemes. Furthermore, the notification specified that existing investors must also provide their Aadhaar numbers to comply with this requirement.
As per the notification, “If a depositor has already opened an account and has not submitted his Aadhaar number to the Accounts Office, he shall do so within a period of six months with effect from the 1st day of April 2023.”
Accordingly, the six-month period is ending on September 30, 2023.
Here are some anticipated outcomes if investments held in post office accounts are frozen:
As mentioned above, the due interest will not be credited to the investor’s bank account.
- Individuals might face limitations in making deposits into their PPF or Sukanya Samriddhi accounts.
- The maturity amount will not be credited to the investor’s bank account.
PAN
Except for individuals who did not furnish their Permanent Account Number (PAN) during the initial account opening, they must submit it to the Accounts Office within two months of the earliest occurrence of the mentioned events, which include:
- The balance at any point of time in the account exceeds Rs 50,000; or
- The total of all credits in the savings account in any financial year is over Rs 1 lakh.
- The aggregate of all withdrawals and transfers in a month from the account exceeds Rs 10,000.
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