Contact Your Financial Adviser Money Making MC
30
October 2017
 |
Post office (The Total Investment & Insurance
Solutions)
Amending
rules on post office savings schemes like the National Savings Certificates
(NSC) and Public Provident Fund (PPF), the government has notified that such
accounts would be closed prior to maturity in case of holders changing their
personal status to become non-resident Indians (NRIs).
The
amended rules were notified in the official gazette earlier this month.
The
amendment to the PPF Scheme, 1968, says: "If a resident who opened an
account under this scheme, subsequently becomes a non-resident during the
currency of the maturity period, the account shall be deemed to be closed with
effect from the day he becomes non-resident."
The
interest payable would be up to the date of the account closure, it said.
A
separate notification on NSCs said in case of a similar change of status of the
certificate holder before the maturity period, "the certificate will be
encashed, or deemed to be encashed on the day he becomes non-resident" and
interest will be paid accordingly.
NRIs
are not allowed in instruments like the National Savings Certificates, Public
Provident Fund, Monthly Income Schemes and other time deposits offered by the
post office.
Asked
to comment in this regard, an investment consultant said that it is unclear why
NRIs are not allowed to invest in post office schemes.
Last
month, the government had retained the interest rate on Public Provident Fund
for October-December unchanged at 7.8 per cent, in line with the rates for
small savings schemes.The Total Investment
& Insurance Solutions
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