Another Relief from Government for PPF, Sukanya Samriddhi Yojana Account Holders!Tue Apr 14 2020 / By: Rashmi
The 21-day lockdown has been extended and so have the worries of small time investors. In the view of rising number of corona virus cases, an uncertainty of the future is also looming on the country’s economy. However, not everything has gone black for now. The Indian government is coming up with various relief orders and ways to help the people.
Recently, the Finance Ministry announced that the government has decided to relax regulations on account holders of Public Provided Fund (PPF), Sukanya Samriddhi Account (SSA) and Recurring Deposits (RDs). They have decided to increase the deadline for mandatory minimum deposit for FY 19-20 by three months up to June 30.
Here is what the tweet said:
"Relaxation of provisions for Account holders of PPF, Sukanya Samriddhi Account (SSA) and RDs (recurring deposits). Govt has taken the decision to safeguard interests of small savings depositors in view of the lockdown in the country due to #Covid19 Pandemic,"
The guidelines also noted that “All those PPF subscribers, whose accounts were matured on 31.03.2020 (including one year window for extension), can now be extended upto 30.06.2020.
The government has made new rules for the PPF, SSA and RD account holders. An official memorandum released by the ministry touched upon important points which are as follows:
• The date of the deposit of minimum amount in PPF, SSA and RD account has been extended from March 31, 2020 to June 30, 2020. The users will not be charged with any penalty or revival fee between this period.
• For this purpose, the user will have to give an undertaking to the account officer promising that the minimum deposit cap will not be breached.
• In case there is a breach in the deposit limit, the extra amount will be returned without interest.
• The user will have to deposit separate amounts for FY 2019-20 and FY 2020-21.
• The outstanding balance as on 31st March will be considered to decide the loan/ withdrawal from the PPF account.
• PPF subscribers, whose accounts were matured on March 31 including one year window for extension, can now be extended up to June 30.
• The account holders will need to submit a duly filled and self-attested copy of the form of extension through the registered e-mail id to get an account extension.
Why The Decision?
For the information, Sukanya Smriddhi Account, PPF and RD account holders are expected to deposit a minimum amount in any of the financial year between April 1 and March 31. It is usually seen that most of the people wait for the last date to make the deposit.
This year, however, the country went into lockdown on 25 March due to which many people could not pay the amount. They were then being fined for late deposit. To solve this problem, Modi government has called for the extension of the last date.
However, those who have already made the deposit can continue with their FY20-21 deposits.