Saving Schemes: Types, Interest Rates & Comparisons

Table of Content:

1. What are saving schemes?
2. List of Savings Schemes
   1. Sukanya Samriddhi scheme
   2. Public Provident Fund (PPF) Scheme
   3. Senior Citizen Saving Scheme
   4. National Savings (Monthly Income Account) Scheme
   5. National Savings Recurring Deposit Scheme
   6. National Savings Certificate Scheme [VIII issue]
   7. Kisan Vikas Patra (KVP) Scheme
   8. Post Office Savings Account Scheme
   9. National Savings Time Deposit Scheme
   10. Mahila Samman Savings Certificate
   11. Equity Linked Savings Scheme (ELSS)
   12. Sukanya Samruddhi Yojana (SSY)
   13. Atal Pension Yojana (APY)
   14. National Pension System (NPS)
   15. Employees Provident Fund (EPF)
   16. Voluntary Provident Fund (VPF)
   17. Post Office Monthly Income Scheme ( POMIS)
   18. NREGA Scheme
   19. Pradhan Mantri Vaya Vandana Yojana (PMVVY)
   20. Bhamashah Yojana
   21. Beti Bachao Beti Padhao (BBBP)
   22. Ladli Laxmi Yojana
   23. Balika Samridhi Yojana
   24. CBSE Udaan Scheme
   25. West Bengal Kanyashree Prakalpa
3. Rate of Interest for Small Saving Schemes for FY 2023-24
4. Rate of Interest for Small Saving Schemes for FY 2022-23
5. Rate of Interest for Small Saving Schemes for FY 2021-22
6. Rate of Interest for Small Saving Schemes for FY 2020-21
7. Rate of Interest for Small Saving Schemes for FY 2019-20
8. Why is it important to invest in saving schemes?
9. Aadhaar and PAN Now Mandatory for All Post Office Schemes
10. FAQs

1. What are saving schemes?

Small savings schemes are the household saving schemes notified by the Central Govt., such as Public Provident Fund, Senior Citizens Savings Scheme, Post Office Recurring Deposit, Sukanya Samriddhi Scheme, etc. The rate of interest on such small saving schemes is notified quarterly.

“Savings Schemes” means the government savings schemes notified by the Central Government to promote household savings in the country. The Government can notify the schemes from Government Savings Promotion Act 1873. The notification may include the provisions relating to who shall be eligible to deposit in a Savings Scheme, the manner of calculation, frequency of payment and rate of interest payable on the deposit, the maximum and minimum limits of deposit, etc.

These schemes guarantee returns with minimal risk and volatility. They can be opened in various ways and start with – monthly, quarterly, half-yearly, and yearly schemes. Some of these schemes are also eligible for deduction under Section 80C.

2. List of Savings Schemes

The following table highlights the details of savings schemes:

 Notes:

1. Accounts in all the above schemes can be opened by resident Indians  Beneficiaries should likewise be resident Indians. Foreign nationals and NRI can neither open the accounts nor be beneficiaries.
2. Only the PPF balance can’t be attached by any decree of the Civil Court. Other Schemes in the above table enjoy no such protection from attachment.

The Government has introduced a range of investment vehicles for people who prefer to invest small amounts over a period of time as they earn. The Govt. has notified the following small saving schemes:

1. Sukanya Samriddhi scheme

The Sukanya Samriddhi Scheme is designed as a savings plan specifically for the benefit of the girl child. Its main objective is to build a fund for her higher education and wedding expenses. The initial scheme was introduced through Notification No. GSR 863(E) on 2nd December 2014. However, it was later replaced by a new scheme, as notified through Notification No. GSR 323(E) on 18th March 2016. Subsequently, the government introduced yet another scheme via Notification No. GSR 914(E) on 12th December 2019, effectively replacing and revoking the previous scheme from 2016.

2. Public Provident Fund (PPF) Scheme

Initially introduced in 1968, the Public Provident Fund (PPF) aimed to foster the habit of savings and investment for post-retirement security. Investing in PPF offers a twofold benefit to the investor: firstly, it enables them to build a corpus for retirement benefits, and secondly, it provides a deduction under Section 80C of the Income-Tax Act.

The Public Provident Fund (PPF) is a tax-free investment avenue open to all individuals. The government introduced this scheme to encourage saving and investment habits among the populace. The scheme was initially notified through GSR 1136, dated 15th June 1968, and has since undergone various amendments. Recently, the government introduced a new version of the scheme via G.S.R. 915(E), dated 12th December 2019.

3. Senior Citizen Saving Scheme

The Senior Citizen Saving Scheme is a program sponsored by the Central Government, specifically designed for senior citizens and retired individuals. The amount deposited under this scheme qualifies for tax deduction under Section 80C. Below are the key features of the new scheme:

The Senior Citizen Saving Scheme is aimed at providing benefits to senior citizens. The original scheme was introduced through Notification No. GSR 490(E) on 2nd August 2004. However, the government has recently introduced a new scheme through Notification No. G.S.R. 916(E) on 12th December 2019, which supersedes and replaces the previous scheme from 2004.

4. National Savings (Monthly Income Account) Scheme

The National Savings (Monthly Income Account) Scheme, 2019, is a savings plan that welcomes investments from residents and non-residents. Initially introduced through Notification No. G.S.R. 701(E) on 10th August 1987; this scheme offered an avenue for individuals to invest and save.

However, the government recently introduced a new scheme through Notification No. GSR 917(E) on 12th December 2019, effectively replacing and nullifying the previous scheme from 1987. The updated scheme continues to provide an opportunity for individuals, whether residents or non-residents, to invest and save with attractive benefits.

5. National Savings Recurring Deposit Scheme

The National Saving Recurring Deposit Scheme is designed as a savings plan specifically for individual investors. Initially introduced through Notification No. F. 3/15/81-NS (v) on 17th December 1981, this scheme allowed individuals to save and invest their money.

However, the government has recently notified a new scheme through Notification No. GSR 918(E) on 12th December 2019, effectively replacing and revoking the previous scheme from 1981. The updated scheme continues to offer a saving avenue for individual investors, providing attractive benefits for those seeking to save and grow their funds.

6. National Savings Certificate Scheme [VIII issue]

The National Saving Certificate Scheme (VIII Issue) is a savings plan for individual investors. It was initially introduced through Notification No. GSR 496(E) on 1st May 1989 offers individuals a saving opportunity.

However, the government has recently notified a new scheme through Notification No. GSR 919(E) on 12th December 2019, effectively replacing and revoking the previous scheme from 1989. The updated scheme continues to provide an attractive saving avenue for individual investors, encouraging them to save and grow their investments.

7. Kisan Vikas Patra (KVP) Scheme

The Kisan Vikas Patra Scheme, 2019, is a savings plan available to individuals, both residents and non-residents. Initially, it was introduced exclusively for farmers, but currently, anyone who meets the criteria outlined in the scheme can open an account.

This scheme does not have a fixed maturity period; instead, the maturity period depends on the prevailing interest rate at the time of account opening.

The Kisan Vikas Patra Scheme was introduced in 1988 but discontinued in 2011. However, it was later reintroduced in 2014 and subsequently replaced by the new scheme, as notified in 2019 through Notification No. GSR 920(E), dated 12th December 2019. The new scheme supersedes the previous version from 2014.

8. Post Office Savings Account Scheme

The Post Office Savings Scheme is a deposit plan provided by post offices all over India. It offers a fixed rate of interest and provides the convenience of easy liquidity with short notice. This scheme is considered risk-free and is ideal for individuals seeking regular income without exposure to financial risks.

Post Office Savings Scheme serves as a savings plan for individual investors. The original scheme was introduced through Notification No. F.3/15/81-NS.II on 17th December 1981. However, the government has recently notified a new scheme via Notification No. GSR 921(E) on 12th December 2019, effectively replacing and revoking the previous scheme from 1981. The updated scheme continues to provide an excellent saving option for individual investors across the country.

9. National Savings Time Deposit Scheme

The National Savings Time Deposit Scheme, 2019, is a savings plan that allows any individual, whether resident or non-resident, to make investments. The original scheme was introduced through Notification No. G.S.R. 664(E) on 17th December 1981, providing an investment opportunity for individuals.

However, the government has recently introduced a new scheme through Notification No. GSR 922(E) on 12th December 2019, effectively replacing and nullifying the previous scheme from 1987. The updated scheme continues to offer a saving avenue for all individuals, irrespective of their residential status, encouraging them to invest and grow their savings.

10. Mahila Samman Savings Certificate

The Mahila Samman Savings Certificate Scheme is a small saving scheme specially designed for the benefit of girl children or women. Guardians of a girl child or a woman can deposit in this scheme until 31st March 2025. The maximum deposit allowed in the scheme is Rs. 2 lakhs for a tenure of 2 years.

It’s important to note that the deposit made under this scheme is not eligible for Section 80C deductions, and the interest earned on the deposit is taxable as income from other sources. This scheme aims to encourage savings and provide financial security for the girl child or women. Still, the tax benefits are not applicable to the contributions made to this particular scheme.

11. Equity Linked Savings Scheme (ELSS)

Equity Linked Savings Scheme (ELSS) is a mutual fund category known for its short lock-in period of only 3 years, making it an attractive tax-saving option. These schemes invest a minimum of 80% of their assets in equities (stocks), providing the potential for higher compounding over the long term compared to other tax-saving instruments.

Here are the key features of ELSS:

• The minimum investment amount varies among different fund houses.
• There is no maximum investment limit.
• Investors can claim a deduction on the principal amount invested, up to Rs. 1.5 lakh, under Section 80C of the Income Tax Act.
• The interest earned on ELSS is taxable at 10% as Long-Term Capital Gains (LTCG).
• Dividends earned from ELSS are taxable at 10% as dividend distribution tax.

12. Sukanya Samruddhi Yojana (SSY)

The SSY scheme, initiated by Prime Minister Narendra Modi, is designed to secure the future of girl children. This government-supported scheme can be opened by parents of girls below the age of 10 years. Parents need to contribute for a period of 15 years. Under Section 80C, individuals can avail of a tax deduction of up to Rs. 1.5 lakh per year. A household can open a maximum of two accounts, one for each girl child.

If a household has more than two girl children, the additional girl children cannot benefit from this account. Individuals can invest a minimum of Rs. 250 and a maximum of Rs. 1.5 lakh per annum. The current interest rate stands at 8.0% per annum. The account has a tenure of 21 years from the date of opening or until the girl child gets married after attaining the age of 18 years. The scheme also permits partial withdrawals, up to 50% of the balance, after the girl child turns 18 to meet higher education expenses.

13. Atal Pension Yojana (APY)

The APY scheme, named in honor of the former Prime Minister of India, Mr. Atal Bihari Vajpayee, primarily focuses on the welfare of the weaker sections of society, especially those from the unorganized sectors. It offers a meager premium for enrollment. Individuals aged between 18 and 40 years can apply for this scheme.

The premium must be paid for a minimum of 20 years. Unlike other schemes, you have to decide on the monthly pension amount you desire to receive upon reaching 60 years of age, which will determine the monthly contribution you need to make. The contribution amount also varies depending on the age you start contributing. The minimum monthly pension that can be availed is Rs. 1,000, while the maximum is Rs. 5,000.

The government provides a co-contribution of 50% of your annual contribution or Rs. 1,000 per year, whichever is lower. This co-contribution is provided for five years if you subscribed to the scheme between 1st June 2015 and 31st December 2015. To be eligible for this government contribution, you must not have any other statutory saving schemes and must not be an income taxpayer.

14. National Pension System (NPS)

The National Pension System (NPS) is a government initiative that offers a reliable source of income post-retirement. The scheme is open to state and central government employees and private employees in organized and unorganized sectors. Indian citizens falling within the age group of 18 to 70 years are eligible to participate.

Under this scheme, a certain percentage of the employee’s monthly salary is contributed, and an equal amount is contributed by the employer, including government employees. The contribution is 14% for government employees, while it is 10% for others. Both the employer’s and employee’s contributions are eligible for tax deduction under Section 80C, up to a limit of Rs. 1.5 lakh. Additionally, individuals can make self-contributions and claim an additional deduction of Rs. 50,000.

The minimum monthly contribution for non-salaried individuals is either Rs. 500 or Rs. 1,000. Upon retirement, account holders can withdraw up to 60% of the corpus tax-free, while the remaining 40% is utilized to purchase an annuity plan, providing a monthly pension post-retirement.

15. Employees Provident Fund (EPF)

The Employee Provident Fund (EPF) is a savings scheme operated by the EPFO (Employee Provident Fund Organization) under the EPF Act. Both the employer and employee covered under EPF are required to contribute to a Provident Fund (PF) account in the employee’s name. EPF serves as a valuable long-term retirement planning tool for the working class and is transferable between employers.

The account can be maintained until retirement, and the employer and employee contribute 12% of the monthly salary into the provident fund account. This account earns interest on the accumulated balances, with the current FY 2022-23 interest rate set at 8.15% per annum. Besides providing a means of saving for retirement, the EPF account also offers financial security in case of emergencies.

The employees’ contribution is eligible for deduction under Section 80C, providing tax benefits and encouraging individuals to save for their future.

16. Voluntary Provident Fund (VPF)

Salaried individuals can make an extra contribution, known as Voluntary Provident Fund (VPF), over and above the mandatory 12% contribution to the EPF. This additional contribution can be up to 100% of their basic salary and dearness allowance. The accumulated funds in VPF can earn an interest rate of 8.15%.

It is important to note that when you choose to contribute to VPF, your employer will not make any additional contribution. The VPF contribution is solely made by the employee, allowing individuals to increase their retirement savings with higher voluntary contributions.

17. Post Office Monthly Income Scheme ( POMIS)

The Post Office Monthly Income Scheme, as the name implies, provides a fixed income in the form of interest based on a lump sum deposit made by the investor. This scheme is particularly suitable for investors with a low-risk appetite seeking a regular assured income. While resident individuals are eligible to invest in this scheme, minors above the age of 10 can also utilize it and even operate the account themselves.

Investors can open multiple accounts under this monthly saving scheme, but the combined net amount across all schemes should not exceed Rs. 4.5 lakh. This scheme offers liquidity benefits, allowing investors to withdraw the deposited amount one year after the first deposit. However, it’s important to note that withdrawals between 1 and 3 years attract a penalty of 1%, while withdrawals after 3 years attract a 1% penalty.

One significant drawback of the Post Office Monthly Income Scheme is that, unlike other saving schemes that offer wealth creation and tax-saving benefits, POMIS does not provide any tax benefits. The interest received monthly is considered part of the taxable income. However, the monthly interest and deposit amounts are free from TDS (Tax Deducted at Source).

18. NREGA Scheme

Most of India’s population resides below the poverty line, struggling to meet their basic needs due to financial constraints. To address this issue, the government has introduced various social welfare schemes to benefit low-income individuals.

One significant measure implemented in 2005 was the National Rural Employment Guarantee Act (NREGA), later renamed the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This scheme has now become the world’s largest social security program.

MGNREGA aims to provide a guaranteed minimum level of employment to India’s rural population, offering an opportunity for the impoverished to work and earn a livelihood to support their families. Under this scheme, every rural household has the right to demand 100 days of paid work per year from the government and receive wages for their work.

19. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme and insurance policy that offers senior citizens an additional source of income after retirement. Administered by the Life Insurance Corporation (LIC) and supported by the Indian government, this plan is designed to cater to the financial needs of retirees.

Individuals aged 60 and above are eligible to enroll in this scheme. Initially available from 4th May 2017 to 31st March 2020, PMVVY was recently extended by the government for an additional three financial years until 31st March 2023.

Under PMVVY, participants receive a guaranteed pension payout at a fixed rate for 10 years. The scheme ensures a guaranteed return of 7.4% per annum, which will be paid out every month throughout the 10-year tenure.

20. Bhamashah Yojana

Bhamashah Yojana is a social welfare scheme implemented by the Government of Rajasthan, India. The scheme is named after Bhamashah, a legendary figure in Rajasthan known for his philanthropy and support for the underprivileged.

The main objective of the Bhamashah Yojana is to empower women and improve the delivery of various social welfare benefits and services to families in Rajasthan. The scheme aims to achieve this by providing a unique identification card to the female head of the family. This card contains the family’s details, including their bank account information and Aadhaar (unique identification) numbers.

By linking various government schemes and subsidies to this unique identification, the Bhamashah Yojana seeks to ensure direct benefit transfers to the eligible beneficiaries, especially women, and enable them to have better control over financial resources. The scheme aims to reduce leakages and corruption in the system and facilitate the efficient delivery of social welfare benefits and services.

The Bhamashah Yojana plays a crucial role in promoting women’s empowerment and inclusive development in Rajasthan by empowering them as the focal point for accessing various government benefits and services.

21. Beti Bachao Beti Padhao (BBBP)

Beti Bachao Beti Padhao (BBBP) is a flagship social welfare scheme launched by the Government of India in January 2015. The scheme is designed to address the declining child sex ratio and promote the welfare of girls in the country.

The main objectives of the Beti Bachao Beti Padhao scheme are as follows:

• Beti Bachao (Save the Girl Child): The scheme aims to curb female foeticide, infanticide, and discrimination against girls. It seeks to raise awareness about the importance of the girl child and discourage practices that lead to the neglect and abandonment of female infants.
• Beti Padhao (Educate the Girl Child):The scheme emphasizes the significance of educating girls and empowering them through education. It aims to improve access to quality education and create a conducive environment for girls’ education.
• Promote Gender Equality: The scheme seeks to promote gender equality by providing equal opportunities and support for girls in all aspects of life, including education, health, and overall development.

To achieve these objectives, the Beti Bachao Beti Padhao scheme employs various strategies, including awareness campaigns, sensitization programs, advocacy initiatives, and community engagement. It works in collaboration with central and state governments, local authorities, and various stakeholders to ensure effective implementation and monitoring of the program.

The Beti Bachao Beti Padhao scheme is a crucial step towards empowering girls and addressing gender imbalances in society, ultimately leading to the overall development and progress of the nation.

22. Ladli Laxmi Yojana

“Ladli Laxmi Yojana” is a social welfare scheme initiated by the Government of Madhya Pradesh, a state in India. The scheme was launched to promote the welfare and empowerment of girl children in the state.

The main objectives of the Ladli Laxmi Yojana are as follows:

• Financial Assistance for Girl Child: Under this scheme, the state government provides financial assistance and incentives to families for the welfare and education of the girl child.
• Encourage Girl Child Education: The scheme aims to promote the education of girl children and to encourage them to pursue higher studies by providing financial support.
• Improve Birth Registration:Ladli Laxmi Yojana encourages timely birth registration of the girl child, ensuring her access to various government schemes and benefits.
• Empowerment and Equality:The scheme aims to empower girls and promote gender equality by providing them with the necessary resources and opportunities for development.
• Mitigate Gender Bias:By providing financial assistance and incentives, the scheme aims to mitigate any gender-based discrimination in society.

The Ladli Laxmi Yojana provides various benefits, including cash incentives, scholarships, and other forms of assistance to eligible families based on specific criteria and conditions set by the government. The primary focus is ensuring the well-being, education, and development of the girl child and promoting a more equitable society.

23. Balika Samridhi Yojana

Balika Samridhi Yojana (BSY) was a social welfare scheme launched by the Government of India in 1997. The primary objective of the scheme was to address the issue of gender inequality and promote the welfare of the girl child in the country.

The key features and objectives of the Balika Samridhi Yojana were as follows:

• Financial Assistance for the Girl Child: The scheme provided financial assistance as a cash incentive to families with a girl child to support their upbringing and education.
• Encourage Girl Child Education:BSY aimed to encourage parents to send their daughters to school by providing financial incentives for the education of the girl child.
• Address Gender Discrimination: The scheme sought to mitigate the discrimination faced by the girl child regarding nutrition, health, and education and promote a more equitable society.
• Awareness and Empowerment:BSY also aimed to raise awareness about the importance of the girl child and empower girls through various support mechanisms.
• Conditional Cash Transfers: The financial assistance under Balika Samridhi Yojana was provided as conditional cash transfers linked to the girl’s regular school attendance and immunization.

It’s important to note that Balika Samridhi Yojana was merged with the Rajiv Gandhi Scheme for Empowerment of Adolescent Girls (RGSEAG), also known as SABLA (Schemes for Adolescent Girls), in 2010. SABLA continues to address similar objectives and supports adolescent girls in their education, health, and overall development.

24. CBSE Udaan Scheme

CBSE Udaan Scheme is an initiative launched by the Central Board of Secondary Education (CBSE) in collaboration with the Ministry of Human Resource Development (MHRD), Government of India. The scheme was introduced to provide free online resources and support for preparing for engineering entrance examinations like JEE (Main and Advanced) and other national and state engineering entrance exams.

The main objective of the CBSE Udaan Scheme is to encourage and facilitate girls’ participation in the engineering field. The scheme aims to address the gender gap in engineering education and promote gender equality in science and technology-related fields.

Under the Udaan Scheme, selected female students from economically disadvantaged backgrounds and underrepresented communities are provided with various benefits, including:

• Free Online Resources: The scheme offers free online study material, video lectures, and practice tests to prepare for engineering entrance exams.
• Virtual Classes: The selected students can attend virtual classes conducted by experienced teachers and subject matter experts to enhance their understanding of various engineering concepts.
• Mentoring and Guidance: The scheme provides personalized mentoring and guidance to the students, helping them in their academic and career choices.
• Mock Tests and Assessments:Students receive regular mock tests and assessments to evaluate their preparation and identify areas of improvement.
• Financial Support:The CBSE Udaan Scheme also provides financial support for the students’ coaching and preparation needs.

By providing these resources and support, the CBSE Udaan Scheme aims to empower and uplift female students, preparing them to excel in engineering entrance exams and pursue successful careers in the engineering field.

25. West Bengal Kanyashree Prakalpa

Kanyashree Prakalpa is a social welfare scheme launched by the Government of West Bengal, India, in 2013. The main objective of the scheme is to empower and uplift adolescent girls in the state and prevent child marriage.

Key features and objectives of the Kanyashree Prakalpa scheme are as follows:

• Financial Support for Girls:The scheme provides financial assistance to girls between the ages of 13 and 18 years to encourage them to continue their education and delay their marriage.
• Incentive for Education:Girls studying in schools and colleges are eligible to receive annual scholarships under Kanyashree Prakalpa, subject to certain conditions.
• Conditional Cash Transfers:The financial assistance is provided as conditional cash transfers to encourage girls to stay in school and pursue higher education.
• Prevention of Child Marriage:By incentivizing education, the scheme aims to prevent early marriage and promote the importance of education for girls.
• Awareness and Empowerment:Kanyashree Prakalpa also includes awareness campaigns and workshops to promote the empowerment of adolescent girls and raise awareness about gender equality.

The Kanyashree scholarship is Rs. 750 per annum for girls between the ages of 13 and 18 years, along with a one-time grant of Rs. 25,000 for girls between the ages of 18 and 19.

3. Rate of Interest for Small Saving Schemes for FY 2023-24

The rates of interest on such small saving schemes are notified every quarter.

4. Rate of Interest for Small Saving Schemes for FY 2022-23

5. Rate of Interest for Small Saving Schemes for FY 2021-22

6. Rate of Interest for Small Saving Schemes for FY 2020-21

7. Rate of Interest for Small Saving Schemes for FY 2019-20

8. Why is it important to invest in saving schemes?

Saving schemes play a crucial role for individuals and the overall economy due to the following reasons:

Safety: Depositing surplus money in saving schemes ensures its security for future needs. Holding onto liquid money may not be safe in the long run.

Retirement Funds: Regularly investing in long-term saving schemes helps build a substantial retirement corpus. Starting early allows for significant growth, providing a comfortable life post-retirement.

Long-Term Benefits: Many schemes use compound interest, leading to impressive returns over the long term. Lock-in periods range from one to fifteen years or even until the age of 60, and the power of compounding ensures substantial maturity amounts.

Tax Savings: Numerous saving schemes offer tax benefits, such as deductions under Section 80C of the Income Tax Act on investments up to Rs. 1.5 lakh. Some schemes provide exemptions on investments, accrued interest, and maturity amounts.

Avoid Unwanted Expenses: Investing surplus money in suitable saving schemes prevents unnecessary spending on frivolous items, ensuring better financial discipline.

These saving schemes cater to diverse investors; many are government-supported, guaranteeing attractive returns. However, interest rates, tax treatment, and lock-in periods vary among various schemes. Therefore, investors should carefully review the options and choose the most suitable one based on their financial goals. Combining different savings schemes can optimize wealth growth for individuals.

9. Aadhaar and PAN Now Mandatory for All Post Office Schemes

The Ministry of Finance has recently issued a notification stating that to open a new post office account, you must provide your Aadhaar number and PAN. If you don’t have an Aadhaar yet, you can show proof of application or enrollment ID during account opening, and then you have 6 months to furnish the Aadhaar number.

For existing post office accounts without an Aadhaar linked, you have 6 months from 1st April 2023 to submit your Aadhaar Card. Additionally, if you didn’t submit your PAN Card during account opening, you must do so within 2 months from the earliest occurrence of the following events:

• Balance in the account exceeds Rs. 50,000 at any time
• Total credits in the account in a financial year go beyond Rs. 1 lakh
• Total withdrawals and transfers from the account in a month exceed Rs. 10,000

Failure to provide Aadhaar within 6 months or PAN within 2 months will make the account inactive until the required information is submitted to the accounts office.

10. FAQs