At present, premature closure of a Public Provident Fund (PPF) account is permitted on specified grounds on completion of five financial years from the date of opening of account. Opening of accounts in the name of a minor is permitted under all the small savings scheme except the Senior Citizens’ Savings Scheme.
There are some ambiguities due to multiple Acts and rules for small savings schemes and the same are as under:
- Certain provisions are not uniform in the existing three Acts.
- Some provisions have become redundant with time, which have been proposed to be deleted, with a view to simplify and avoid confusion.
- Some provisions are not clearly defined in existing Acts, leading to legal issues.
The Government proposed to merge Government Savings Certificates Act, 1959 and Public Provident Fund Act, 1968 with the Government Savings Banks Act, 1873. The main objective of the common act is to bring uniformity in the provisions of different small savings schemes presently governed by the three Acts.
The grievances relating to small savings are addressed by the banks and Department of Posts. Some grievances are also handled by Ministry of Finance.
This was stated by Shri P. Radhakrishnan, Minister of State for Finance in written reply to a question in Lok Sabha today.