New Rules Announced For PPF And Sukanya Samriddhi Yojana: How They Impact You

The Public Provident Fund ( PPF ) and Sukanya Samriddhi Yojana (SSY) are popular long-term investment schemes in India, allowing individuals to build substantial savings over time. While any Indian citizen can invest in PPF, the Sukanya Samriddhi Yojana is specifically designed for parents or guardians of daughters up to 10 years of age. Starting from October 1, 2024, new rules have been introduced for both these schemes, and it’s important for investors to be aware of how these changes may impact their investments.

New Rules for PPF:

Interest on Minor Accounts: The first major change in PPF is related to accounts opened for minors. From now on, PPF accounts held in the name of minors will earn interest at the post office savings account rate until the child reaches 18 years of age. After the minor turns 18, the standard PPF interest rate will apply, and the maturity of the account will be calculated from the child’s 18th birthday.

Multiple PPF Accounts: If an individual has opened more than one PPF account, the primary account will earn the applicable interest rate, while any secondary account will be merged with the primary one. The excess amount from the secondary account will be refunded, but with 0% interest. Additionally, if there are more than two PPF accounts, they will earn 0% interest from the date they were opened.

NRIs with Pre-1968 PPF Accounts: The third change affects Non-Resident Indians (NRIs) whose PPF accounts were opened before 1968 under the older regulations. These account holders will continue to receive interest at the Post Office Savings Account rate until September 30. After this date, their accounts will earn 0% interest.

New Rules for Sukanya Samriddhi Yojana:

Starting from October 1, 2024, new rules will also be implemented for the Sukanya Samriddhi Yojana (SSY), which is designed to secure the future of young girls. According to the revised rules:

If a Sukanya Samriddhi account has been opened by the grandparents of a girl child, the account will now be transferred to the legal guardian or biological parents of the child.

In cases where more than two Sukanya Samriddhi accounts have been opened for the same girl, the additional account(s) will be closed.

These new regulations aim to streamline the management of accounts and ensure transparency for investors in both schemes.

Investors should take note of these changes and review their accounts accordingly to maximize their returns and avoid any potential issues.