PPF, KVP and NSC account: This new rule has been mentioned in the order issued by the Postal Department. According to the department, this decision has been taken to close such accounts which remain inactive even after three years of maturity.
PPF Account: If you have a PPF, NSC or any other small saving scheme account in the post office, then this news is important for you. Recently a new rule has been issued by the Postal Department. Under this, if your account is not closed even after three years of maturity, then it will be frozen. This step has been taken by the Postal Department to keep the investors’ money more safe.
Which accounts will be affected?
The new rules will apply to all small saving schemes of the post office. These mainly include Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Post Office Monthly Income Scheme (MIS), Post Office Term Deposit (TD) and Post Office Recurring Deposit (RD).
Why was this decision taken?
This new rule has been explained in the order issued by the Postal Department. According to the department, this decision has been taken to close such accounts which remain inactive even after three years of maturity. Its purpose is to keep the hard-earned money of the customer safe. This freezing process will now be done twice a year at a fixed time.
When and how will the accounts be frozen?
This process will run in two phases, starting from January 1 and July 1. Within 15 days of these dates, all those accounts will be frozen which have completed three years after maturity. For example, accounts which will complete three years of maturity by 30 June or 31 December will be included in this process.
How to avoid freezing?
To prevent their account from being frozen, the account holder has to do one thing. They have to formally apply to the post office to extend the period of their deposit scheme. Let us tell you that the new rule has come a few days after the government announced to keep the interest rate of small savings scheme schemes unchanged for the July to September quarter of FY 2025-26.
