For PPF, NSC, and other minor savings programs, the Ministry of Finance has made Aadhaar and PAN crucial. This was announced in a notice dated March 31, 2023, that its mandate is to link your Aadhaar card with PPF and other accounts. Existing investors were also required to link Aadhaar numbers, according to the notice.
According to a government statement, customers with such investments must hand over their Aadhaar number to a post office or a financial institution branch by September 30, 2023. If you do not supply the Aadhaar number by the deadline, your small savings investments will be blocked until the Aadhaar number is provided.
Ministry of Communication Announcement:
On March 31, 2023, the Ministry of Communications made a significant statement mandating the implementation of Aadhaar for purchases in small saving schemes such as the Public Provident Fund (PPF), National Savings Certificate (NSC), or Senior Citizens Savings Scheme (SCSS) is utmost important for every individual in India. people who have already invested must provide their Aadhaar numbers. In addition, when certain criteria are met, persons must submit their Aadhar number and PAN in order to register a savings account under any of the programs in the Government Savings Promotion Act.
Divakar Vijayasarathy, Founder and CEO of DVS Advisors statement:
In the event that Aadhaar is not submitted within the deadline of 6 months, the account will no longer continue to be accessible until the time of registration. Sukhanya Samriddhi, NSC, Post Office Monthly Income Scheme, SCSS, KVP, PPF Post Office Time Deposits, and other schemes are governed by the above-mentioned Act.
When an account holder needs to link an Aadhar card?
An investor has created a savings account without completing the pending compliance within 6 months i.e. from 1st April 2023. Aadhar has not yet been allocated, he must provide proof of implementation for Aadhar at the stage of releasing an account, and the person who holds the account shall provide the Aadhar within 6 months of the date of releasing of account for the sake of linking.
What will happen if a person fails to link it’s Aadhaar Card to PPF ?
If individuals fail to give an Aadhaar number and their funds are frozen, any interest due will not be paid to their bank account. Individuals may also be prohibited from making contributions into their PPF or Sukanya Samriddhi accounts. Furthermore, the maturity money will not be transferred to the investor’s bank account, and the account will remain dormant until the investor furnishes the Aadhaar number to the Accounts department.
Government’s Purpose for Linking Aadhaar Card:
The Indian government is implementing this policy to guarantee fiscal openness and to prevent unlawful activity. In this respect, Aadhaar, a 12-digit unique identity number provided by the Unique Identity Authority of India (UIDAI), is seen as useful. It serves as a vital identifier, providing an individual’s completely personal and biometric information, minimizing the likelihood of committing fraud and money laundering. It is an important cog in the government’s effort to digitalize the Indian economy.