You will be surprised to hear that there are major changes in Kisan Vikas Patras, Public Provident Fund, National Saving Scheme, Time Deposit and Interest on loan from PPF. Detailed information regarding such changes are given as under:-
- A New NSC instrument, with maturity period of 10 Years, would be introduced.
- The maturity period of Monthly Income Scheme (MIS) and National Savings Certificate (NSC) will be reduced from 6 years to 5 years.
- Kisan Vikas Patras will be discontinued.
- The annual ceiling on investment under Public Provident Fund (PPF) Scheme will be increased from Rs. 70,000 to Rs. 1,00,000.
- Interest on loans obtained from PPF will be increased to 2% p.a. from existing 1% p.a.
- Liquidity of Post Office Time Deposit (POTD) - 1 years,2 years, 3 years & 5 years- will be improved by allowing pre-mature withdrawal at a rate of interest 1% less than the time deposits of comparable maturity. For pre-mature withdrawals between 6-12 months of investment, Post Office Savings Account (POSA) rate of interest will be paid.
Notification for implementation of all above will be issued separately and implemented from the dates to be specified in the Notifications. However committee decision note are attached herewith for complete study. (Click Here)