PPF, SCSS, post office savings scheme rules changed: Here is everything that's new
Several changes have been made to the public provident fund (PPF), senior citizen savings scheme (SCSS), and post office savings schemes.
Several changes have been made to the public provident fund (PPF), senior citizen savings scheme (SCSS), and post office savings schemes. The ones who have invested in these schemes must know these new rules on these policies claimants in case of first accountholder's death. Now, the rules regarding the claimants on death of the first account holder where there is no nomination or legal evidence have been revised.
The rule has been amended and the powers of various authorities to sanction the claims of heirs of the deceased people regarding post office savings schemes redefined by the Department of Posts (DoP). The authorities are also empowered to provide claims where there is no nomination or no legal evidence available or produced.
The rules come into effect with immediate effect. The revised rules, issued on August 29,2019, will be applicable to PPF, SCSS and post office savings schemes. On the death of the account holder, where there is no nomination, the authorities are competent to sanction claims without producing legal evidence. However, there is a maximum limit. Under the new rule, a Chief Postmasters General/Postmasters General sanction up to Rs 500,000 in his or her discretion.
"The authorities mentioned are competent to sanction claims without production of legal evidence up to the limit noted against each, after expiry of six (6) months from the date of death of the depositor, if no succession certificate or probate of will or letter of administration of the deceased estate is produced during the period or up to the date of sanction," the circular stated.
This new rule is applicable to all the core banking solutions (CBS) and non-CBS post offices, the circular said. These revised provisions should be made applicable where claims are not submitted or claims are submitted but yet not sanctioned, it said. However, the cases which have already been decided in the past will not be reopened.
This will give relief to the kin of account holders who face problems to claim the amount after the death of the first-holder.
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