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Home Blogs Health News Govt allows PPF subscribers to pay FY20 deposits till June 30

Govt allows PPF subscribers to pay FY20 deposits till June 30

By NS Desk| Health News| posted on :   11-Apr-2020

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New Delhi, April 11 (IANS) The government on Saturday further relaxed regulatory provisions to operate small savings schemes, allowing Public Provident Fund (PPF) and Sukanya Samriddhi Account (SSA) holders to complete their deposits for FY20 till June 30, 2020.

The three-month extension would be subject to the account holders making one deposit while sticking to maximum deposit ceiling prescribed for the two schemes.

The extension has been allowed to safeguard the interest of small savings depositors in view of the lockdown in the country due to coronavirus scare.

The PPF and SSA depositors will have to give an undertaking that while making deposits into their respoective accounts during the extended period, they will not breach the annual ceiling kept for the schemes.

Any additional deposit over the prescribed annual ceiling will be treated as irregular and will be returned to the account holders without interest. But interest on all regular deposits will accrue only from the date of actual deposits, even if made for the previous year.

The relaxation allowed by the government will also not result in levy of default fee if deposits for FY20 are made by account holders during the extended period. But this will be restricted only for FY20. The default fee will be charged if the account had remained inoperative in any previous years.

The Finance Ministry office memorandum also says that for the purpose of deciding withdrawal limit or loan, the balance in PPF and SSA on March 31 will be taken into account. But the subscribers will be allowed to extend their account after maturity during the extended period up to June 30.

--IANS

sn/tsb

NS Desk

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