Government Savings Promotion General (Amendment) Rules, 2023

Last updated: 03 April 2023

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The Government Savings Promotion General (Amendment) Rules, 2023, have been introduced, effective from their publication date. These amendments modify Rule 6 of the Government Savings Promotion General Rules, 2018. The key change requires individuals opening a new savings account to submit their Aadhaar Number or Permanent Account Number (PAN) or Form 60, in addition to other identity documents. Specific timelines and conditions apply for submitting these documents, with accounts potentially ceasing to be operational if deadlines are missed.

MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 31st March, 2023

G.S.R.238(E) - In exercise of the powers conferred by section 15 of the Government Savings Promotion Act, 1873 (5 of 1873), the Central Government hereby makes the following rules to amend the Government Savings Promotion General Rules, 2018, namely:-

1. These rules may be called the Government Savings Promotion General (Amendment) Rules, 2023.

(2) They shall come into force on the date of its publication in the Official Gazette.

2. In the Government Savings Promotion General Rules, 2018, in rule 6, for sub-rule (1), the following sub-rule shall be substituted, namely:-

“(1) In addition to the documents mentioned in sub-rule (2) of rule 5, an individual shall also submit to the Accounts Office, the following identity documents containing proof of identity and address for the purpose of opening an account, namely:-

(a) the Aadhaar Number issued by the Unique Identification Authority of India:

Provided that,-

(a) where the Aadhaar Number has not been assigned to an individual, he shall furnish proof of application of enrollment for Aadhaar at the time of opening an account and the account holder shall furnish the Aadhaar number to the Accounts Office within a period of six months from the date of opening of account for linking the account with Aadhaar Number;

(b) 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,

and in the event of failure of the depositor to submit the Aadhaar number within the specified period of six months, his account shall cease to be operational till the time he submits the Aadhaar Number to the Accounts Office;

(b) the Permanent Account Number or Form 60 as defined in the Income Tax Rules,1962:

Provided that the individual who has not submitted the Permanent Account Number at the time of opening an account shall submit the same to the Accounts Office within a period of two months from the date of happening of any of the following events, whichever is the earliest, namely:-

(i) the balance at any point of time in the account exceeds fifty thousand rupees; or

(ii) the aggregate of all credits in the account in any financial year exceeds one lakh rupees; or

(iii) the aggregate of all withdrawals and transfers in a month from the account exceeds ten thousand rupees,

and in the event of the failure of the depositor to submit the Permanent Account Number within the specified period of two months, his account shall cease to be operational till the time he submits the Permanent Account Number to the Accounts Office;

(c) any other document as may be considered necessary by the Accounts Office including those related to the nature of business and financial status of the depositor.”

[F. No. 1/3/2023-NS]

ASHISH VACHHANI, Addl. Secy.

Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide notification number G. S. R. 1003 (E), dated the 5th October, 2018.

FAQ :

These are amendments to the existing Government Savings Promotion General Rules, 2018, which came into force upon their publication in the Official Gazette.

The main change requires individuals opening a new savings account to submit their Aadhaar Number or Permanent Account Number (PAN) or Form 60, along with other required identity documents.

If an Aadhaar Number has not been assigned, individuals must provide proof of application for Aadhaar enrollment when opening an account. They then have six months from the account opening date to submit their Aadhaar Number.

Existing account holders who have not yet submitted their Aadhaar number must do so within six months from the 1st of April, 2023. Failure to do so will result in the account ceasing to be operational until submission.

A PAN or Form 60 must be submitted within two months from the earliest of these events: the account balance exceeding fifty thousand rupees, aggregate credits exceeding one lakh rupees in a financial year, or aggregate withdrawals/transfers exceeding ten thousand rupees in a month. The account will cease to be operational until submission.

Yes, the Accounts Office may request any other documents considered necessary, including those related to the depositor's business nature and financial status.