Government Relaxes Norms for Small Savings Schemes: Key Changes You Need to Know

In a recent move, the government has eased norms for various small savings schemes, impacting popular avenues like the Public Provident Fund (PPF), Senior Citizen's Savings Scheme (SCSS), and Time Deposit Scheme. This development, outlined in a gazette notification dated November 9, introduces alterations aimed at facilitating more flexible and accessible financial planning for citizens.
Changes in Key Schemes:
Public Provident Fund (PPF):
The PPF now allows changes in premature closure norms. This adjustment is part of the Public Provident Fund (Amendment) Scheme, 2023, as mentioned in the notification.
These modifications aim to provide individuals with additional options regarding the closure of their PPF accounts.
Senior Citizen's Savings Scheme (SCSS):
New norms for the SCSS extend the time frame to open an account. Previously set at one month, individuals now have three months to initiate an account.
The gazette notification specifies that an individual can open an SCSS account within three months from the date of receiving retirement benefits, along with providing proof of the disbursal date of these benefits.
National Savings Time Deposit Scheme:
Changes in the National Savings Time Deposit scheme address premature withdrawals. If a deposit in a five-year account is withdrawn after four years from the account opening, the interest payable would be at the rate applicable to Post Office Savings Account
This alteration simplifies the interest calculation process, streamlining it with the existing withdrawal structure.
Interest Rates for October-December 2023 Quarter:
PPF - 7.1%
SCSS - 8.2%
Sukanya Yojana - 8.0%
NSC - 7.7%
PO-Monthly Income Scheme - 7.4%
Kisan Vikas Patra - 7.5%
1-Year Deposit - 6.9%
2-Year Deposit - 7.0%
3-Year Deposit - 7.0%
5-Year Deposit - 7.5%
5-Year RD - 6.7%
Tax Benefits of Small Savings Scheme:
Many of these schemes offer tax benefits under various sections of the Income Tax Act. Commonly eligible schemes include SCSS and PPF, providing deductions under Section 80C of the Income Tax Act, with benefits extending up to Rs1.5 lakh.
This relaxation in norms is seen as a positive step toward making these savings instruments more user-friendly and aligning them with the evolving financial needs of individuals.



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Changes in Our Business Model
25th Sept 2020
Greetings from Moneylife Advisory Services
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
What remains the same:
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  • We will have to suspend the restructuring tool.
What changes:
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Over the next few weeks our site and our communication to you will reflect these and other additional changes.
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
Debashis Basu