Small Savings Schemes | A new rule has come into effect for those who hide money in Post Office Schemes.
Recently the Central Govt Small Savings Schemes(Small Savings Schemes) increased interest rates. This has made these schemes attractive. Small savings schemes that offer high interest rates have become attractive as there is no risk involved. However, the government has decided to keep a close eye on people investing in these schemes to prevent money laundering and terrorist-financing activities. In India Post A circular has recently been issued to complete the documentation required to complete the Know Your Client (KYC) process while investing.
According to this circular, customers having accounts with India Post are identified into three categories. It includes low risk, medium risk and high risk. Those having certificates with maturity value up to Rs.50,000 or current balance in savings accounts not exceeding Rs.50,000 are identified as low risk category.
Those who have investments between Rs.50,000 to Rs.10 lakh are in the medium risk category. Those who invest more than Rs.10 lakh are in the high-risk category. Investors in three categories shall submit two passport-size photographs, Aadhaar Number, PAN No should be submitted. Address proof is also mandatory. If there is no address proof, any documents like driving license, utility bills should be submitted.
Every investor should complete KYC in case of joint account holders also. For high-risk category investors, bank statements, Income Tax Returns, inheritance certificates, gift or sale deeds, wills, any documents reflecting income are mandatory.
If the depositor is a minor then KYC and income proof of the guardian is required. Those in the low risk category should resubmit KYC every seven years, those in the medium risk category every five years and those in the high risk category every two years. Existing India Post depositors should submit their Aadhaar number by September 30, 2023. It is not necessary if Aadhaar proof has been given earlier.
If the balance in any account exceeds Rs.50,000, if the amount of all credits in the bank account exceeds Rs.1 lakh in a financial year or if the transfer or withdrawal from the account exceeds Rs.10,000 in a month, the PAN number should be submitted. If the depositor fails to submit the documentation the account will be frozen.
