**Update on PPF-Sukanya Samriddhi Yojana: Aadhaar and PAN Required for Investments**
Investors planning to put their money in small savings schemes like Public Provident Fund (PPF), Senior Citizen Saving Scheme (SCSS), or Sukanya Samriddhi Yojana (SSY) must note a new regulation issued by the Ministry of Finance. The Ministry has clarified who can now invest in these government schemes.
**New Rules for Small Savings Schemes**
The government has revised the rules for investing in these schemes. Moving forward, individuals will not be able to reap the benefits of these investment opportunities without a Permanent Account Number (PAN) and Aadhaar card.
The Finance Ministry issued a notification recently explaining that Small Savings Schemes will now require Know Your Customer (KYC) procedures.
**Need for PAN and Aadhaar**
According to the Ministry, investors will have to submit their Aadhaar enrollment number before making further investments. Furthermore, for investments exceeding certain limits, displaying a PAN card is mandatory. Investments cannot be made without a PAN card.
**Timeframe for Aadhaar Submission**
For those opening an account for the Post Office Savings Scheme without Aadhaar, proof of enrollment slip for Aadhaar must be submitted. Additionally, to link the investment with the ‘Small Savings Scheme’, the Aadhaar number must be provided within six months from the date of account opening.
The essential documents required to open an account in the Small Savings Scheme include:
– Aadhaar number or enrollment slip
– Passport size photograph
– PAN number
The Ministry has also declared that if existing investors fail to submit their PAN and Aadhaar cards by September 30, 2023, their accounts will be frozen from October 1, 2023.
**Key Points:**
– PAN and Aadhaar card are now mandatory for investing in small savings schemes.
– The Aadhaar enrollment number must be submitted before making further investments.
– For investments above certain limits, a PAN card must be shown.
– If opening an account without Aadhaar, the Aadhaar enrollment slip should be submitted.
– Existing investors must submit their PAN and Aadhaar by September 30, 2023, to avoid freezing of their accounts.
