File No. 14/6/2020-NS(Pt)
Ministry of Finance
Department of Economic Affairs
North Block, New Delhi
Subject: Relaxation guidelines for Small Savings Schemes – reg.
The undersigned is directed to inform that the regulatory provisions to operate the Small Savings Schemes are further relaxed in continuation to this office OM of even no. dated 30.03.2020. The decision is taken to safeguard the interests of small savings depositors in view of the lockdown in the country due to COVID-19 pandemic.
2. The following relaxation provisions in reference to specified Small Savings Schemes will be operationalized with immediate effect and shall accordingly be adhered to by all operating agencies:
a. The Public Provident Fund (PPF) account/ Sukanya Sarnriddhi Account (SSA) holders will be eligible to make a single deposit each in account(s) opened in his own name and/or account(s) opened in the name of minor(s), as the case may be for FY 2019-2o till 30.06.2020 subject to the condition of maximum deposit ceilings prescribed in the PH/ SSA scheme provisions.
b. Fur this purpose, the subscriber will have to give an undertaking to the accounts office that “The maximum deposit ceiling applicable to PPF account/ SSA scheme (as per the relevant statute) opened by me in my own name and/or in the name of the minor, as the case may be, will not be breached with this deposit for FY 2019-20. At any stage, if it is found that the ceiling has been breached, then the excess deposit will be treated as irregular and shall be returned to me without any interest.”
c. The deposit will earn interest from the date of actual deposit and will be calculated as per the provisions of the PPF/ SSA scheme.
d. If no deposit was made in the PPF accounts/ SSA maintained by an individual in FY 2019-20, no default fee for FY 2019-20 will be charged if the account is regularized by making deposit before 30.06.2020. However, default fee shall be charged for defaults pertaining to Financial Years other than FY 2019-20.
e. For the purpose of deciding the withdrawal/ loan limit in the PPF account, the outstanding balance on 31.03.2020 would be considered.
f. The subscribers of PPF account/ SSA may continue to make deposit for FY 2020-21 in the usual manner. However, the subscriber of the PPF Account/ SSA shall deposit the amount for FY 2019-20 and 2020-21 separately in his account.
g. All those PPF subscribers, whose accounts were matured on 31.03.2020 (including the period of one year for extension) and couldn’t be extended due to lockdown despite willingness, may now extend their PPF account by submitting the prescribed form before 30.06.2020.
h. The Department of Post/ Banks shall allow the subscribers to submit the duly filled signed scanned copy of prescribed form of extension of PPF account through registered email id. However, the original copy of the same shall be submitted to the concerned account office, once the lock-down is lifted in the country or concerned area, as the case may be.
3. These issues with the approval of competent authority.
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