A non-resident Indian (NRI) can now be made a nominee for government saving schemes such as PPF, NSC and post offices savings, said the Finance Ministry in a notification.

Besides, the government permitted applicants to make changes to their names or surnames.

These changes are part of list of amendments to the Government Savings Promotion General Rules, as notified by the Finance Ministry.

The rules cover various schemes provided under Government Savings Promotion Act, 1873 such as Public Provident Fund (PPF), National Saving Certificate (NSC), Sukanya Samriddhi, Senior Citizens Savings Scheme, Mahila Samman Nidhi Post Office Time Deposits, Kisan Vikas Patra, and Post Office Monthly Income Scheme.

Relief for NRIs

NRIs are not allowed to invest in small saving schemes. There were also issues related to their nomination.

“Non-resident Indians shall be eligible to be nominated as nominee subject to the condition that payment to such nominee/s shall be on non-repatriation basis,” said a newly added sub-rule.

The new rule indicates that the money needs to utilised in India.

Changes to name/surname

Another amendment seeks to facilitate the account holder to change name or surname. This will be allowed by the account office by following the “procedure laid down by Reserve Bank of India for change of name or surname in Bank Savings Account.”

If one needs to make a change in the name or surname, he/she can request only after receiving the legal affidavit document to prove that the name has been changed legally. The name correction application can be written just like an application for bank statement or other formal letters to the bank.

Conversion of account

According to previous rules, an account opened as a Single Account cannot be subsequently converted into a Joint Account or vice versa.

Now a proviso has been added to allow for the conversion of a joint account into a single account on account of the death of an account holder.

Accounts on the names of minors

An amendment has also been done related to accounts of minors.

At present, an adult can open an account on behalf of the minor by submitting proof of age of minor.  There is a provision for submission of passport size photograph of the account holder. The latest rule says that only the recent passport size photograph of the guardian needs to be submitted.

Death of Depositor

Norms related to payments on account of death of a depositor have also been changed. If the total amount is up to ₹5 lakh and and there is no nominee and the probate of his will or letters of administration of estate or a succession certificate or legal heir certificate is not produced within six months from the date, then the rightful claimant will be required to fill Form11.

He will also have to produce death certificate of the account holder, original passbook or deposit receipt, an affidavit, letter of disclaimer, bond of indemnity and identity proof.

In case of dispute, the amount will be paid to claimant on submission of a succession certificate issued by the Court along with claim form, pass book or deposit receipt or statement of account in original, death certificate of the account holder and identity proof of the legal heir.

If the amount is more than ₹5 lakh, the payment will be made on the basis of will or letter of succession along with other documents.

Related Topics
comment COMMENT NOW