Making life easier for small savers

Making life easier for small savers

News:

1. The Government setting up of Government Savings Promotion Act by merging the Public Provident Fund (PPF) Act of 1968, the Government Savings Banks Act of 1873 and the Government Savings Certificates Act of 1959.

Important Facts:

2. This move would strengthen the objective of ‘minimum government, maximum governance’.
3. The main objective is to make implementation easier for the depositors through this Act. As the existing benefits being accrued to the depositors would not be taken away by this Act.
4.  The Act would have certain new benefits such as:

• Earlier, a PPF account could not be closed before 5 years. Now, premature closing of account has been introduced for Small Saving Schemes to deal with medical emergencies, higher education needs and other contingencies.
• investment in SSS can be made by a guardian on behalf of minor(s). In addition, now ,  the guardian may also be given associated rights and responsibilities.
• Unlike earlier, a provision has been proposed to promote a culture of savings among children.
• A succession certificate need not be obtained if a minor dies without a nomination. The balance amount automatically goes to the guardian.
• The Bill has clear provisions on the operation of accounts in the name of physically infirm and differently abled persons.