The government proposes to allow premature closure of Public Provident Fund (PPF) accounts and permit opening of small savings accounts in the name of a minor, the finance ministry said on Tuesday.
The legislative changes proposed in the Finance Bill 2018 are aimed at adding flexibility in the operation of the account under Small Savings Schemes (SSS), it said.
Dismissing concerns expressed in the certain section of media, the ministry said that all existing protections have been retained while consolidating PPF Act under the proposed Government Savings Promotion Act.
“No existing benefits to depositors are proposed to be taken away through this process,” it said, adding that the proposal is to merge Government Savings Certificates Act, 1959 and Public Provident Fund Act, 1968 with the Government Savings Banks Act, 1873.
It further said that apart from ensuring existing benefits, certain new benefits to the depositors have been proposed under the bill.