RBI Notification – Clarification regarding reckoning of the date of deposit

RBI Notification – Clarification regarding reckoning of the date of deposit

Reserve Bank of India, DGBA, vide its Notification –  RBI/2009-10/365 DGBA.CDD. H– 7530/15.02.001/2009-10 dt.March 29, 2010, has provided clarifications regarding the reckoning of the Date of  the Deposit.

Deposit into PPF Account can be made by way of

01) Cash

02)                       Local Cheque

03)                       Pay Order

04)                       Demand Draft drawn on the location where the Bank Branch is located

05)                       Outstation Cheque

06)                       Online Transfer viz NEFT

Of course, Deposits into PPF Account are not a part of the ECS cycle.

The Date of Deposit in cash of Cash has to be same day.

The issue is when the deposit is made through other methods than Cash.

If the deposit if made via Online Transfer viz NEFT, the date of deposit can be the date of the successful Online transfer.

But, what is the date of reckoning the date of deposit, if the deposit is through – Local Cheque/Pay Order/Demand Draft drawn on the location where the Bank Branch is located/Outstation Cheque ?

As per , Ministry of Finance letter No. F. 3(9)-PD/72 dated September 4, 1972, in the case of Public Provident Fund Scheme, 1968 (PPF)

• “when a subscriber makes a deposit by local cheque or demand draft,
• the date of tender of cheque or draft at the Accounting Office is treated as date of deposit,
• provided the related cheque is honoured on presentation for encashment.”

However, in case of all other Small Savings Schemes of the Government of India (GoI),

• such as, Post Office Savings Schemes (POSS),
• as also Senior Citizens Savings Scheme, 2004 (SCSS),
• if the money is deposited in the account by means of a cheque (local or outstation), the date of encashment of the cheque is treated as the date of deposit.

This provision in PPF gave an edge to depositors, especially when Outstation Cheques are deposited.

To remove this anomaly, Reserve Bank of India, DGBA, vide notification dt,.29^th March, 2010, has clarified that

QUOTE

In order to bring uniformity in the reckoning of the date of deposit in the PPF vis-à-vis POSS and SCSS, the GoI, vide their letter F. No.7/7/2008/NS-II dated February 10, 2010, have decided that hereafter in modification of Ministry of Finance letter No.F.3(9)-PD/72 dated September 4, 1972 “when a deposit is made in the PPF account by means of a local cheque or demand draft by the subscriber, the date of realization of the amount will be the date of deposit.”

UNQUOTE

Thus this brings in uniformity in reckoning the date of  deposit of the funds in PPF/POSS and SCSS.

Very Basic fundas of PPF 1968.

• PPF came into existence from   1st July, 1968.
• It uses the power of compounding to save your money.
• The Public Provident Fund has been established by the central government.
• You can voluntarily decide to open one. You need not be a salaried individual; you could be a consultant, a freelancer or even working on a contract basis. You can also open this account if you are not earning.
• Any individual can open a PPF account in selected  bank or its branches that handle PPF accounts. You can also open it at the head post office or certain select post offices.
• The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000.

• The Best part of the PPF is that the funds deposited in it are free from any attachment
• A PPF account is free from any attachment under any order or decree of a court in respect of any debt or other liability incurred by him

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PPF account can be opened in any of the following Banks:

PPF A/c-State Bank of India

PPF A/c-State Bank of Indore

PPF A/c-State Bank of Patiala
PPF A/c-State Bank of Bikaner & Jaipur

PPF A/c-State Bank of Travancore
PPF A/c-State Bank of Hyderabad

PPF A/c-State Bank of Mysore
PPF A/c-Allahabad Bank

PPF A/c-Bank of Baroda

PPF A/c-Bank of India
PPF A/c-Bank of Maharashtra

PPF A/c-Canara Bank

PPF A/c-Central Bank of India
PPF A/c-Corporation Bank

PPF A/c-Dena Bank

PPF A/c-Indian Bank
PPF A/c-Indian Overseas Bank

PPF A/c-Punjab National Bank

PPF A/c-Syndicate Bank
PPF A/c-UCO Bank

PPF A/c-Union Bank of India

PPF A/c-United Bank of India
PPF A/c-Vijaya Bank

PPF A/c-IDBI Bank

PPF A/c-ICICI Bank

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Yes, you have read correctly, PPF Accounts can be opened with ICICI Bank too, and the Bank offers Online PPF Accounts,

I am sure viewers would be interested in such a facility.