Investors of small saving schemes can get these 6 reliefs
The government has clarified on Tuesday that there will be no change in interest rates on small savings schemes such as PPF and NSC. Also, in the coming days, it is being considered to facilitate the closure of public provident fund (PPF) accounts before maturity. Apart from this, opening of accounts in small savings schemes under the name of minors may also be allowed. The Finance Ministry gave this information on Tuesday.
The government is in the process of incorporating the Government Savings Certificates Act, 1959 and the Public Provident Fund Act, 1968 in the Government Savings Bank Act, 1873. The Ministry said that the main goal of the proposal is to make such a law, to facilitate the process for the depositors. They do not have to go through different rules and laws for different schemes.
In addition to ensuring the existing benefits, the depositors are also expected to get new benefits under the proposed bill. These provisions will be included in the revised act. Know about these six roads-
What is the current arrangement- According to the PPF Act, the PPF account can not be closed before the completion of five financial years. If the depositor wants to close the PPF account five years ago, then he can not do it.
What is the proposed arrangement- Public Provident Fund (PPF) accounts are being considered to be closed before maturity? Prior to maturity, withdrawal of funds will be helpful to the account holder in need of emergency medical emergency and higher education requirements.
What is the current arrangement – In small saving schemes, no adult can open an account instead of a non-resident. In the proposed law the guardian may also discuss the rights and obligations related to it.
What is the proposed arrangement- So far if any amount is deposited in the account on behalf of a non-resident, then there was no clear law. On which any rules can be brought in the upcoming change. These will definitely encourage the habit of saving in children.
Procedure for the success of the successor-
Existing arrangement – Under the current provision of the Act, if the depositor dies and nomination is present, the outstanding balance will be given to the nominee.
Proposed system- The Supreme Court had stated in its judgment that the nominee has the right to collect funds in the form of a trustee for the benefit of a legal heir only. There was a difference between the provision of the Act and the Supreme Court’s decision. Hence the rights of the nominees are now clearly defined.
Present system- There is no provision for enrollment in connection with opening of account under the name of minor under existing Act. Also, according to the existing Act, if the account holder dies, there is no nominee and if the amount is more than the prescribed limit then this amount will be paid to Legal Ar (legal heir). For this the patron has to get a succession certificate.
Proposed Treatment- In order to overcome this inconvenience, the provision of nomination has been included in the account opened under the name of minorities. Also, such provisions have been made that if the minor dies and no nomination has been made, the remaining balance will be given to the protector.
Grievance Correction (Gravination Ridrassal)
Existing arrangement- There is no clear provision for the Gravian’s Ridrassal in the current Act
Proposed Mechanism – The Revised Act allows the government to create a mechanism for the cordial and speedy disposal of disputes related to redressal of grievances and disputes related to small savings.