The Central Government has made it mandatory to link the accounts of savings schemes with Aadhaar to protect investors of all types of savings schemes from the dangers of online fraud and for financial monitoring of investors.
This requirement is also for the investors of Public Provident Fund (PPF). In such a situation, PPF investors must link their account with Aadhaar (Link Aadhaar With PPF) before June 30. Otherwise, their account may be locked and transactions with the account may be stopped.
The Public Provident Fund (PPF) investment scheme is included in the most popular list of government savings schemes. Investors can deposit a maximum of Rs 1.5 lakh annually in a PPF scheme with an investment limit of 15 years. Interest at the rate of 7.1 per cent is applicable on this amount. In this way, Rs 1.5 is deposited every year for 15 years, which the investor gets in the form of a thick corpus on completion of the tenure.
It is mandatory to link PPF account with Aadhaar
The Ministry of Finance has made it mandatory for all small savings schemes and post office scheme investors to link Aadhaar (PPF Link With Aadhaar). According to the ministry, if the PPF investor has opened the account before March 31, 2023 and has not submitted his Aadhaar number to the accounts office, he should submit the Aadhaar within a period of six months with effect from April 1, 2023.
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The period of six months will end on 30 September 2023. However, PPF investors should do this before June 30, as the government has set a deadline of June 30 to link all bank accounts and PAN with Aadhaar. Therefore, before September 30, if there is a transaction from PPF account to bank account, then the investor should not face any problem.
Disadvantages if PPF account is not linked to Aadhaar (PPF Aadhaar Linking)
According to the instructions of the Ministry of Finance, if the Aadhaar number is not submitted to the post office where the PPF account is opened and the PPF account is not linked, then the account will be frozen. In such a situation, the investor may have to face many problems like-
- The amount of interest payable will not be credited to the PPF account holder’s account.
- Investor will not be able to deposit money in his PPF accounts.
- The maturity amount will not be transferred to the bank account specified by the investor.
