Is Aadhaar mandatory for investment in small savings schemes such as Senior Citizen Savings Scheme, PPF, NSC, Sukanya Samriddhi Yojana? | Business

Apr16,2024



Small Savings Schemes: Investing in small savings schemes like public provident fund (ppf), Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), and others require adherence to certain documentation procedures. Chief among these is dedication Base Details, as mandated by the Ministry of Finance.
According to ET, the Finance Ministry announced on April 3, 2023 that, as per the Government Savings Promotion General (Amendment) Rules, 2023, individuals will have to provide unique identity documents to the accounting office while opening an account. These documents include aadhaar number Issued by Unique Identification Authority of India.
The notification also states that if a person does not have an Aadhaar number, they should enroll in the Aadhaar scheme. They can then use the proof of enrollment to open a Small Savings Scheme account.
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Aadhaar for Small Savings Schemes

The Finance Ministry has mentioned that if a person has not been given an Aadhaar number, they should provide proof of application for Aadhaar enrollment while opening the account. The account holder must provide the Aadhaar number to the account office within six months from the date of account opening for linking purposes.
The notification also said that if the depositor fails to submit the Aadhaar number within the specified six month period, their account will become inactive until they provide the Aadhaar number to the accounting office.
Sharing his experience, Abhishek Kumar, SEBI registered RIA and Founder of Sahaj Money, said, “Based on the provisions of GSR (General Statutory Rules) No. 238 (E) dated 31.03.2023 published in the Gazette of India, w.e.f. 01.04.2023 On June 10, 2019, we had advised our customers to update their Aadhaar and PAN details in their small savings accounts such as PPF. NSCSukanya Samriddhi Account, etc. Most of them have done so and are not facing any problems in receiving interest or operating their accounts.
He also shared the importance of individuals taking this need seriously. Failure to complete this activity may result in them being unable to receive the maturity amount unless they fulfill this requirement.
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Requirement to submit PAN for small savings schemes

According to the notification, if a person has not provided his/her PAN while opening a Small Savings Scheme account, he/she will have to do so within two months of the occurrence of specific events. These events include:
(i) the balance in the account at any time exceeds fifty thousand rupees,
(ii) the total deposits in the account exceed one lakh rupees in any financial year, or
(iii) Total withdrawals and transfers from the account in a month exceed ten thousand rupees.
The Finance Ministry said in the notification that if the depositor fails to deposit his permanent account number Unless they provide PAN to the account office, within the specified two month period, their account will become inactive.



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