This is because the Ministry of Finance has made Aadhaar mandatory for making investments in small savings schemes. The mandate of linking the Aadhaar number with the existing small savings scheme has come via a notification dated March 31, 2023.
Also Read: PAN-Aadhaar mandatory for making investments in PPF, NSC, other post office schemes
As per the notification, “if a depositor has already opened an account and has not submitted his Aadhaar number to the Accounts Office, he shall do so within a period of six months with effect from the 1st day of April 2023.” The expiry of six months will be on September 30, 2023. The same notification has made PAN and Aadhaar number mandatory for making investments in small savings schemes.
The notification states that if the Aadhaar number is not submitted to the post office or bank branch within six months, i.e., by September 30, 2023, then the small savings investment will be frozen. Some of the following are the likely consequences if the post office investments are frozen:
- Interest will not be credited to the investor’s bank account wherever it is due.
- An individual may not be able to deposit money into their PPF or Sukanya Samriddhi Accounts.
- The maturity amount will not be credited to the investor’s bank account.