PAN and Aadhaar numbers are now required for investing in small savings schemes like the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Post Office Saving Scheme, Senior Citizens Saving Scheme (SCSS), and others. The Ministry of Finance published a notification with respect to this on March 31, 2023. These modifications were made as part of the KYC (Know Your Customer) process for small savings schemes introduced by the government.
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Previously, it was possible to invest in small savings programmes without submitting one’s Aadhaar number. But, in order to engage in government-backed programmes, one must now provide at least an Aadhaar enrollment number. The letter further stated that anyone investing in a particular amount will be required to provide a PAN card.
KNOW THE NEW RULES ASSOCIATED WITH THE SMALL SAVING SCHEME:
According to the Finance Ministry’s statement, small savings subscribers must provide their Aadhaar numbers by September 30, 2023. This condition applies if the users have failed to submit it earlier while creating a PPF, SSY, NSC, SCSS, or any other small savings account.
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In addition to the statement made, the new subscribers who desire to open any of the modest savings schemes without an Aadhaar number must provide an Aadhaar number within six months of account opening.
If a modest saving programme subscriber has not yet received his Aadhaar number from the UIDAI, his Aadhaar enrolment number will function.
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If an Aadhaar number or Aadhaar enrollment number is not issued, the small savings scheme account will be frozen six months after the account opening.
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For existing customers, the accounts will be frozen on October 1, 2023 if they do not provide their Aadhaar number with their small savings account before the deadline.
