Corona Lockdown: Failed to make PPF, SSY deposits? Your a/c won’t become inactive

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Updated: Mar 31, 2020 8:48 PM

According to the rules, holders of of PPF and SSY accounts need to make minimum annual contributions of Rs 500 and Rs 250 (earlier Rs 1,000) respectively.

Coronavirus outbreak, Novel Coronavirus COVID-19, lockdown, Coronavirus relief measures, extension in cutoff date for tax-saving instruments, Public Provident Fund, PPF, Sukanya Samriddhi Yojana, SSYInterest on PPF, SSY and NSRD will be calculated on March 31, 2020.

In view of the current nationwide lockdown to contain the spread of highly contagious Novel Coronavirus COVID-19, the government has provided relief to the holders of Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and NSRD (National Saving Recurring Deposit) accounts.

The government has taken the decision after receiving proposal/requests from the Department of Posts, banks, depositors and Agents Associations to waive default fee/revival fee applicable on NSRD/PPF/SSA accounts on non deposit of monthly/yearly deposit and period of calculation/payment of interest on Small Savings Accounts due to the lockdown situation in the country to contain the spread of COVID-19 infection.

After due deliberation, the Economic Affairs Department (DEA) of the Ministry of Finance has given the following approval:

A) The subscribers of RD Account/ SSA/ PPF A/c may deposit the mandated due amount, if any of Current FY (2019-20) and April, 2020 (as the case may be) in their respective accounts till June 30, 2020 and no penalty/ revival fee shall be charged.

B) The last day of the Current Financial Year (FY) i.e. March 31, 2020 shall be considered by the Operating Agencies for the purpose of calculation of interest payment on all Small Savings Schemes and hence, no change is made.

According to the rules holders of NSRD accounts need to deposit at least Rs 100 per month, while holders of PPF and SSY accounts need to make minimum annual contributions of Rs 500 and Rs 250 (earlier Rs 1,000) respectively.

Confirming the decisions of Ministry of Finance (DEA) against an email query, DDG (FS) Sachin Kishore told Indian Express Online, “As informed by the Ministry of Finance, default/revival fee applicable on monthly deposits for March and April 2020 in case of RD and yearly minimum deposit on PPF and SSA has been waived in view of nationwide lock down.”

“Deposits for the defaulted amount can be made up to June 30, 2020,” he added.

Despite the extension in date for minimum deposits, interests on PPF, SSY and NSRD will be calculated on March 31, 2020.

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