DEA Issued 6 New Rules for PPF, Sukanya Samriddhi Yojana

Current Context: The Department of Economic Affairs (DEA) has issued six new rules for Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), and other small savings schemes, effective from October 1, 2024.

• Here are the key changes:
• Irregular NSS Accounts: Accounts opened irregularly under the National Small Savings (NSS) schemes will be regularized. Specific guidelines have been provided for accounts opened before and after certain dates.
• PPF Accounts for Minors: New rules for PPF accounts opened in the name of minors to ensure compliance with deposit limits.
• Multiple PPF Accounts: Guidelines for handling cases where individuals have more than one PPF account.
• NRI PPF Extensions: Rules for the extension of PPF accounts by Non-Resident Indians (NRIs).
• Sukanya Samriddhi Account (SSA) Regularization: Regularization of SSA accounts opened by grandparents instead of guardians.
• Zero Interest on Non-compliant Accounts: From October 1, 2024, accounts that do not meet the specified criteria will earn zero percent interest.
• These changes aim to streamline the management of small savings schemes and ensure compliance with the regulations.

Question:

1 Which of the following changes has been introduced by the Department of Economic Affairs (DEA) effective from October 1, 2024, concerning National Small Savings (NSS) accounts?

• A) Irregular NSS accounts will be regularized
• B) New accounts will no longer be permitted under NSS schemes
• C) NSS accounts will now have a higher interest rate
• D) Deposits in NSS accounts will be capped at ₹1 lakh annually

Answer: A) The DEA has introduced new rules for regularizing irregular NSS accounts to streamline the management of small savings schemes.