The Ministry of Finance has issued a notification, dated March 31, mandating the linkage of Aadhaar and Permanent Account Number (PAN) to key small savings schemes, including the Public Provident Fund (PPF), National Savings Certificate (NSC), and various others. The deadline for completing the linking process is now very near.
Deadline fast approaching
The notification outlines the requirement for existing account holders who have not yet linked their Aadhaar number. They must do so within six months, starting from April 1, 2023, with the compliance cutoff set for September 30, 2023.
Consequences of not linking Aadhaar
Should depositors fail to provide their Aadhaar number within this six-month period, the ET report warns of certain consequences. These include the non-crediting of interest to their bank accounts, an inability to make further deposits into accounts such as PPF or Sukanya Samriddhi, and the non-crediting of maturity amounts to their bank accounts.
This directive for linking, Economic Times reported, extends to both new and existing investors.
For individuals who have invested in schemes such as the Senior Citizens Savings Scheme (SCSS), PPF, NSC, and other post office savings plans, compliance involves submitting their Aadhaar number to the relevant post office or bank branch by September 30, 2023. Failing to meet this deadline will result in the suspension of their small savings investments until the Aadhaar number is furnished.
Furnishing PAN also mandatory
Furthermore, investors who did not furnish their Permanent Account Number (PAN) at the time of account opening must ensure its submission to the Accounts Office within two months of the earliest occurrence of the following events:
- When the account balance exceeds Rs 50,000.
- When the total credits to the account during any financial year exceed one lakh rupees.
- When the cumulative withdrawals and transfers from the account in a month surpass Rs 10,000.