The Department of Posts issued SB Order No. 05A/2024, providing clarifications on the regularization of accounts opened in violation of the National Small Savings Schemes (NSS) rules. As per the new guidelines, accounts under NSS 87 and NSS 92 will earn zero interest from October 1, 2024. For minor accounts, those with guardianship can continue to hold or open new Public Provident Fund (PPF) accounts, which will earn the prevailing interest rate of 7.1% per annum. The guidelines specifically target minor PPF accounts that were opened without guardianship, aiming to regularize them in the public interest. These actions are part of a broader initiative to align small savings accounts with established rules and ensure compliance with National Savings Schemes. The clarifications, issued by the Ministry of Finance, also reaffirm earlier instructions regarding the regularization process and the effective date for interest rate changes.
No, FS-113-0322024
Government of India
Ministry of Communications
Department of Posts
(Financial Services Division)
Dak Bhawan, New Delhi – 110001
SB Order No. 05A/ 2024 Dated: 11.10.2024
To
All Heads of Circles Regions
Subject: Clarification on SB order 05.’2024 on Guidelines of regularization of accounts opened in deviation of Rules stipulated under National Small Savings Schemes.
Madam Sir.
Kindly refer to SB Order No. 05’2024 dated 21-08-2024 conveying guidelines related to 414- regularization of accounts opened in deviation of Rules stipulated under National Small Savings Schemes. In connection with the above guidelines. the following clarifications have been issued by Department of Economic Affairs. MoF vide OM No. 14/1:2018-NS- Part (1) dated 30.09.2024:
a. All accounts opened under NSS 87 and NSS 92 will earn zero rate of interest, vv.e.f. 01.10.2024.
b. Minor with guardianship can continue to hold PPF account or open a new account and will get prevailing PPF scheme interest rates (currently at 7.1 % per annum). The new guidelines only apply to those cases which were irregularly opened (i.e. a minor account without Guardianship). The purpose of the guidelines is to regularize. in public interest. those PPF accounts which were opened by small investors in contravention to the extant PPF rules.
3. A copy of DEA, MoF’s OM No.14 1.2018-NS- Part (1) dated 30.09.2024 is attached herewith for reference.
4. It is requested to circulate it to all concerned for information, guidance, and necessary actions.
5. This issues with the approval of the Competent Authority.
Yours faithfully
Encl: As above.(P. Ajit Kumar)
Assistant Director (SB-I)
Copy to:-
1. Sr. PPS to Secretary (Posts)
2. PS to Director General Postal Services.
3. PPS/ PS to Aodl. DG (Co-ordination Member (Banking’ Member (0)/Member (P)/ Member (Planning & HRD)/Member (P_I)/Member i:TeehylAS & FA
4. ,Addl. Director General. APS. New Delhi
5. Chief General Manager. BD Directorate Parcel Direct Yate PLI Directorate CEPT
6. Deputy Director General (Vig) & CVO)! Sr. Deputy Director General (PAF)
7. RAKNPA Directors of all PTCs
8. Director General P & T (Audit). Civil Lines. New Delhi
9. Postal Services Board I All Deputy Directors General
10. All General Managers (Finance) / Directors Postal Accounts DDAP
11. The Under Secretary. MOF (DEA). NS-ll Section. North Block. New Delhi.
12. The Joint Director & HOD. National Savings Institute. ICCW Building. 4 Deendayal Upadhyay Marg. New Delhi-1 10002
13. All recognized Federations Unions Associations
14. Guard File/e-File.
(P. Ajit Kumar)
Assistant Director (SB-I)
F.No 14/1/ 2018-NS-Part(1)
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
North Block,New Delhi
Dated: 30.09.2024
T0,
1. The DDG (FS)
Ministry of Communications
Department of Posts (FS Division)
Dak Bhawan, New Delhi- 110 001
2. Government Business Unit of all Agency Banks
Subject: Regularization of accounts opened in deviation to Rules stipulated under National Small Savings Schemes for select Schemes-Guidelines communicated-reg.
Sir,
I am directed to reiterate the guidelines issued vide this Department’s letter of even number dated 12.07.2024 on regularization of accounts opened in deviation to Rules stipulated under National Small Savings Schemes for select Schemes. Copy enclosed for requisite compliance.
2. Further, following may be noted:
a. It is reiterated that all accounts opened under NSS 87 and NSS 92 will earn zero rate of interest w.e.f. 01.10.2024.
b. Minor with guardianship can continue to hold PPF account or open a new account and will get prevailing PPF scheme interest rates (currently at 7.1% per annum). The new guidelines only apply to those cases which were irregularly opened (i.e. a minor account without Guardianship). The purpose of the guidelines is to regularize, in public interest, those PPF accounts which were opened by small investors in contravention to the extant PPF Rules.
Yours faithfully,
(VISHNUKANTH P.B)
Director (Budget)
