Govt relaxes rules for PPF, SCSS and time deposit accounts

Recently the news has come on the internet that the rules for funding small savings plans including the Public Provident Fund (PPF), Time Deposit Scheme, and Senior Citizen’s Savings Scheme (SCSS) have changed. Now the rules have been relaxed, therefore, permitting more inclined investors to benefit from putting their money in them. Since the news has come on the internet it circulated on many social media platforms. Currently, this news is gaining huge attention from people as they are super curious to know about the whole information. Here we have more information about the news and we will share it with you in this article.

Government

The following list supplies a few category summaries of little security schemes supplied by the Indian government at present. Scroll down to the next page for more information about the news.

Recurring Deposit (RD)

Objective: To create an organised deposit over a predetermined time.

Interest Rate: Up to 7.5% per annum.

Term: 5, 10, or 15 years.

Investment Amount: Minimum of Rs. 100 per month.

Tax Implications: Taxable interest income.

Sukanya Samriddhi Yojana (SSY)

Objective: Saving for a girl child’s more elevated education or marriage.

Interest Rate: Currently at 8% per annum.

Term: Up to 21 years.

Investment Amount: Minimum of ₹250 per month.

Tax Implications: Tax-exempt interest payment.

Public Provident Fund (PPF)

Objective: Accumulating long-term savings for retirement or other objectives.

Interest Rate: Presently at 7.1 per cent per annum.

Term: 15 years.

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Investment Amount: Minimum of ₹500 per annum.

Tax Implications: Interest earnings are delayed until adulthood.

Kisan Vikas Patra (KVP)

Objective: Rallying savings from rural families.

Interest Rate: Currently at 7.5% per annum.

Term: 113 months

Investment Amount: Fixed amount (based on tenure).

Tax Implications: Capital proceeds on maturity are tax-exempt.

Mahila Samman Saving Certificate

Objective: Encouraging savings among women.

Interest Rate: Currently at 7.5% per annum.

Term: Up to 2 years.

Investment Amount: Minimum of Rs. 1000 per annum.

Tax Implications: Tax-exempt interest payment.

How have the rules changed for these savings schemes?

Small saving schemes have been investment options regulated by the Department of Economic Affairs (DEA) within the finance ministry. Presently, the Central Government enforces the latest regulations aimed at amending existing provisions, to foster more prominent inclusivity in these schemes. The government has extended the time for initiating an SCSS account from one month to three months. Here we have shared all the information that we had if we get any information then we will update you soon. Stay connected with us for more updates.

Mark
Gurleen Kaur

I'm a science graduate from the Ahmadu Bello University, Nigeria. My passion for writing has brought me to into the field of content.