File No. 14/6/2020-NS(Pt)

F.No. 14/6/2020-NS
Ministry of Finance
Department of Economic Affairs
(Budget Division)

North Block, New Delhi
Dated: 11.04.2020


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.

(Rajesh Panwar)
Dy. Director
Ph. 011-2309 3170

More Under Finance


  1. Sajal says:


    I’ve invested around 70K at 15th July 2020 to take benefit of extended deadline. Earlier, I also invested around 50K at 10th March 2020. So as per the extended deadline, my total investment in FY 19-20 is 120K for PPF 80C.

    My query is, now I want invest full 150K in PPF for FY 20-21 in Feb-21. Can I do that? It won’t conflict with the 70K invested in July-2020, right? Since I want to consider July-2020 investment in FY 19-20 instead of FY 20-21.

    Thanks in advance.


  2. Vinita Gupta says:

    I had opened new PPF account in Mar’20 with Rs 500/- but due to lockdown unable to deposit the balance Amount of Rs. 149500/-, can i Deposit the same in current FY 20-20 with Rs. 150000/- of current year also. It means can i deposit Rs 299500/- in current FY 20-20 in my PPF account.

  3. vijay says:

    Provision for nomination of more than one person to inherit singly or jointly will help all deposit holders in banks, post offices, LIC policy holders etc and will go a long way to reduce inheritance litigations. .Further there should be a provision for issue certificate of nomination registered with the banks etc. during the life of the the person nominating so that he can be sure whom he has nominated to receive the funds in the event of his death and he can peacefully die ,Government and Reserve Bank may issue necessary orders in this regard

  4. Sanjyot says:

    1) Can I pay PPF for F.Y.2020-21 online before 30/06/2020 ?
    2) If I pay PPF for F.Y.2020-21 online before 30/06/2020, then whether I have to still give undertaking to bank and how ?

  5. MANISHA says:

    i want to contribute for the year 2020-21 in my PPF A/C, CAN I DO SO FROM THE MONTH OF APRIL 2020 ONWARDS OR I HAVE TO START FROM JULY 2020

  6. ASHOK KUMAR B says:

    Relaxation in PPF and Sukanya Samrudhi : The way extension of dates are given is it not surprising that the competent authority has found it fit that by June 30th 2020 all Covid 19 will vanish into thin air and life will be bristling with activity and Sensex and Nifty will be bang to their life time high. So much confidence in them

  7. ASHOK KUMAR B says:

    I agree with Mr A Ranganathan, and also want a long list of Nominees like in some documents( I can’t recall maybe in AGM’s or Wills etc which mention ” A failing which B failing which C and so on. Not only in PPF but also in Bank Fixed Deposits Savings Accounts Property documents anything and everything that one can Imagine. In fact my friend suggested that a Legal Heir certificate must be issued when the person is alive instead of after the death making the legal heir run from Pilllar to Post

  8. A. Ranganathan says:

    I am told theat the present PPF Rules provide for registration of only one nominee. In case the Account holder and the nominee die in an accident , God forbid, the inheritors of the estate will have to t go hrough torcherous legl formalities to get hold of the funds in the account of the deceased.
    I think one more nominee may be permitted and recorded to meet such contingencies

Cancel reply

Leave a Comment to Vinita Gupta

Your email address will not be published. Required fields are marked *

Search Posts by Date

June 2021