Failed to Make PPF, SSY Deposits in Lockdown: Accounts to Remain Active

Amidst the nationwide lockdown to limit the spread of Novel Coronavirus (COVID-19), the government has come up with a relief to the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and National Saving Recurring Deposit (NSRD) account holders. 

As a response to several requests and proposals from the Department of Posts, Banks, Depositors and Agent Associations, the government has decided to overlook the standard minimum contribution fee applicable on PPF, SSY and NSRD accounts. This implies that even in case of non deposit of monthly/yearly deposit, the accounts under the above-mentioned schemes will remain active. 

As per the existing rules of the schemes, National Savings Recurring Deposits (NSRD) accounts require a minimum monthly deposit of Rs.1,000. PPF and SSY accounts require minimum annual contributions of Rs.500 and Rs.250 respectively.

Following provisions are approved by the Economic Affairs Department (DEA) of the Ministry of Finance-

1. The subscribers of PPF/SSY/RD Account can deposit the due mandate amount (if any) for 2019-20 and April 2020 in their respective accounts till June 30, 2020. No penalty or revival fees to be charged.
2. There is no change in interest payment calculation on all the Small Saving Schemes as the last day of the current financial year (March 31, 2020) shall be considered by the Operating Agencies.

“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 the nationwide lockdown.” confirms Sachin Kishore, Deputy Director General of Financial Services in India. He also added that “Deposits for the defaulted amount can be made up to June 30, 2020.”