The Union government said on Tuesday that it is retaining the basic elements of the popular public provident fund scheme including tax exemptions and the interest rate policy — but is building in new facilities such as allowing investors to opt out of the scheme before the completion of five years. The government has proposed several amendments to the laws governing small savings schemes such as PPF and National Savings Certificate, which have raised apprehensions about subscribers losing out on several benefits. In a statement, the finance ministry said that in case of exigencies, such as medical emergencies or higher education needs, PPF accounts will now be allowed to close prematurely. Investment in small savings schemes can be made by a guardian on behalf of a minor under the provisions proposed in the Bill and the guardian may also be given associated rights and responsibilities.

The Union government said on Tuesday that it is retaining the basic elements of the popular public provident fund scheme including tax exemptions and the interest rate policy — but is building in new facilities such as allowing investors to opt out of the scheme before the completion of five years. The government has proposed several amendments to the laws governing small savings schemes such as PPF and National Savings Certificate, which have raised apprehensions about subscribers losing out on several benefits. In a statement, the finance ministry said that in case of exigencies, such as medical emergencies or higher education needs, PPF accounts will now be allowed to close prematurely. Investment in small savings schemes can be made by a guardian on behalf of a minor under the provisions proposed in the Bill and the guardian may also be given associated rights and responsibilities.