If you have invested in any of these savings schemes like Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Senior Citizen Savings Scheme (SCSS) and National Saving Certificate (NSC), you need to provide two key documents Aadhaar and PAN to the accounts office of the respective financial institution, if not submitted them yet.
If you fail to submit these key documents within the specified period, your account will be dormant until the documents are submitted.
Govt mandates Aadhaar for opening these accounts
It is now mandatory to provide Aadhaar to invest in small savings schemes like PPF, SSY, SCSS and NSC. Opening a fresh account in any of the small savings schemes needs Aadhaar card details of the applicant.
In a notification issued last year, the government said that an individual shall submit to the accounts office, the following identity documents containing proof of identity and address for the purpose of opening an account. The documents are – Aadhaar, issued by the Unique Identification Authority of India UIDAI, and PAN.
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What happens when Aadhaar number is not assigned?
Where Aadhaar number has not been assigned, investors may furnish proof of application of enrollment for Aadhaar at the time of opening an account and the account holder shall furnish the Aadhaar number to the accounts ofice within a period of six months from the date of opening of account for linking the account with Aadhaar, the notification by the Finance Ministry said.
If a depositor has already opened an account and has not submitted his Aadhar to the accounts offfice, he shall do so within a period of six months with effect from April 1, 2023.
In the event of faliure of the depositor to submit the Aadhaar number within specified period of six months, “his account shall cease to be operational till the time he submits the Aadhaar Number to the accounts office”.
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Is PAN required for investors to participate in the small savings scheme?
As per the notification, an investor is given two months’ time to submit his or her PAN if it is not submitted at the time of opening the small savings scheme account. “He/she shall submit it to the accounts office of the respective financial institution within a period of two months from the date of happening of the following events; whichever is earlier:
(i) the balance at any point of time in the account exceeds fifty thousand rupees or
(ii) the aggregate of all credits in the account in any financial year exceeds one lakh rupees; or
(iii) the aggregate of all withdrawals and transfers in a month from the account exceeds ten thousand rupees,
“In the event of the failure of the depositor to submit the Permanent Account Number within the specified period of two months, his account shall cease to be operational till the time he submits the Permanent Account Number to the Account Office,” the notfification said.
