In order to remove ambiguities due to multiple Acts and Rules for Small Saving Schemes, Union Government on February 13, 2018 proposed merger of Government Savings Certificates Act, 1959 and Public Provident Fund Act, 1968 with the Government Savings Banks Act, 1873.
For this, the relevant provisions of the Government Savings Certificates (NSC) Act, 1959 and the Public Provident Fund Act, 1968 will be subsumed in the new amended Act without compromising on any of the functional provision of the existing Government Savings Banks Act, 1873.
Objective behind the merger of these Acts
• The amendment is expected to strengthen the objective of “Minimum Government, Maximum Governance”.
• The main objective of proposing a common Act is to make implementation easier for the depositors as they need not go through different rules and Acts for understanding the provision of various small saving schemes.
• This amendment will also bring about certain flexibilities for the investors.
Consolidation of PPF Act
• While consolidating Public Provident Fund (PPF) Act, 1968 under the proposed Government Savings Promotion Act, government retained all existing protections.
• There is no proposal to withdraw the existing provisions and depositors will continue to enjoy protection under the amended umbrella Act as well.
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New benefits introduced for depositors
Foreclosure of PPF Account:
Investment in Small Savings Schemes can be made by Guardian:
Provisions for differently-abled people:
Right of Nominees:
Provision for grievance redressal:
No change in interest rate or tax policy:
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