Bank account will close if not done this work before September 30
The finance ministry has directed the banking companies to freeze the account if the PAN and Aadhaar are not linked to savings accounts process is not completed by the end of this month, those accounts will be closed.
As confidence in the banking sector increases, people are investing their money in various banking schemes for reliable returns. The central government comes up with some schemes to divert people towards savings and offers them a higher rate of interest.
As a result, a large percentage of people are investing in small savings accounts. However, recently, the government has mandated linking of Aadhaar and PAN to these accounts. This link time is extended in a phased manner. However, the deadline ends on the 30th of this month.
Those who have invested in small savings schemes like SCSS need to link Aadhaar card and PAN with their respective accounts. The finance ministry has directed the banking companies to freeze the account if the process is not completed within the stipulated time. So, if PAN and Aadhaar are not linked to savings accounts by the end of this month, those accounts will be closed.
If investors fail to link their Aadhaar and PAN with PPF, NSC or SCSS within the deadline, their investments in these small savings schemes will be frozen. Moreover, investors will not be able to avail benefits like interest return on their deposits. Investors are required to submit Aadhaar number and PAN to open an account as part of any scheme under the Government Savings Promotion Act when certain conditions are met.
The Finance Ministry has made it mandatory to link both Aadhaar and Permanent Account Number (PAN) for PPF, NSC and several other small savings schemes. Existing investors must provide their Aadhaar numbers compulsorily to comply with this requirement, the ministry said.
The finance ministry has advised banks in the new financial year to freeze accounts if depositors have already opened an account and have not submitted their Aadhaar number to the account office. Last time six months were given for linking. As the deadline expires on September 30, Aadhaar and PAN will have to be linked to the accounts.
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The deposit interest is not credited to the investor’s bank account. Individuals face restrictions for making deposits in their PPF or Sukanya Samriddhi accounts. The maturity amount is not credited to the investor’s bank account.
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