Aadhaar, PAN becomes mandatory for PPF, SSY other small saving schemes
2 min read 01 Apr 2023, 12:41 PM ISTPPF, SSY, SCSS, other small savings scheme investors need to furnish Aadhaar number by 30th September 2023 while new subscribers will have to submit the 12-digit UIDAI number within six months of account opening
PremiumPAN and Aadhaar number has become mandatory for making investments in small saving schemes like Public Provident Fund PPF), Sukanya Samriddhi Yojana (SSY), Post Office Saving Scheme, Senior Citizens Saving Scheme (SCSS), etc. The ministry of finance issued notification in this regard on 31st March 2023. These changes have been notified as part of KYC (Know Your Customer) for small saving schemes. Prior to this central government's notification, investment in small saving schemes was possible without submission of one's Aadhaar number. But, from now onwards, one will have to submit at least Aadhaar enrolment number for making investment in government-backed small saving schemes. The notification also made it clear that one will have to furnish PAN card on investment above a certain threshold.
New rule for small saving scheme
As per Finance Ministry's notification, small savings subscribers will have to submit one's Aadhaar number by 30th September 2023, if they have not submitted their Aadhaar number while opening PPF, SSY, NSC, SCSS or any other small savings account. The notification further made it clear that new subscribers who wish to open any of the small saving scheme without Aadhaar number, they will have to furnish Aadhaar number within six months of account opening. One's Aadhaar enrolment number would work in case a small saving scheme subscriber is yet to get his Aadhaar number assigned from the UIDAI.
In case of non seeding of Aadhaar number or Aadhaar enrolment number, one's small savings account will be freezed after six months of account opening. For existing subscribers, their account will be freezed from 1st October 2023, if they fail to furnish their Aadhaar number with their small savings account within the given deadline.
See Finance Ministry's notification below:
The notification went on to add that PAN has to be submitted at the time of small savings account opening. In case the PAN is not submitted at the time of account opening, it must be submitted within two months of account opening in following cases:
1] The balance at any point of time in the account exceeds fifty thousand rupees; or
2] The aggregate of all credits in the account in any financial year exceeds one lakh rupees;
3] The aggregate of all withdrawals and transfers in a month from the account exceeds ten thousand rupees.
"In the event of failure of the depositor to submit the Permanent Account Number (PAN) within the specified period of two months, his account shall cease to be operational till the time he submits the Permanent Account Number to the Accounts Office," the notification added.
