The government has amended rules on small savings schemes such as National Savings Certificates and Public Provident Fund. Now, such accounts will be closed before they mature if the account holders become non-resident Indians, IANS reported.
The new rules – according to which, the interest payable will be up to the date of the account closure – were notified in the official gazette earlier this month, PTI reported.
The notification said that in case of a similar change of status of the certificate holder, “the certificate will be encashed, or deemed to be encashed, on the day he becomes non-resident”.
NRIs are also not allowed to invest in other instruments such as Monthly Income Schemes and other time-bound deposits offered by post offices.
Last month, the government did not change the 7.7% interest rates on small savings schemes – that are recalibrated every quarter – for the October-December period.