Centre may announce Aadhaar-based KYC norms for small savings schemes

The Centre is soon likely to announce Aadhaar-based simplified Know Your Customer (KYC) norms for small savings schemes, in a bid to cut down compliance and attract more small investors into these schemes, Business Standard has learnt.

Additionally, banks and post offices will implement enhanced savings limits under Senior Citizens Savings Schemes and Monthly Income Schemes, and introduce the new Mahila Samman Savings Certificate from April 1, as announced in the 2023 Union Budget.

“Aadhaar-based simplified KYC is on the anvil, with an aim to increase access of small investors to small saving schemes,” said a senior government official.

The simplified KYC, along with small savings rates for the April-June 2023 quarter, may be announced on March 31, the official said.

This comes at a time when the government has given a big push to small savings schemes. Finance Minister Nirmala Sitharaman had, in her budget speech on February 1, increased the maximum deposit limit for Senior Citizen Savings Scheme to Rs 30 lakh from Rs 15 lakh.

“The maximum deposit limit for the Monthly Income Account Scheme will be enhanced from Rs 4.5 lakh to Rs 9 lakh for single account and from Rs 9 lakh to Rs 15 lakh for joint account,” she had said.

She had also announced a one-time new small savings scheme, Mahila Samman Savings Certificate, that will be made available for a two-year period up to March 2025. “This will offer deposit facility up to Rs 2 lakh in the name of women or girls for a tenor of two years at a fixed interest rate of 7.5 per cent with partial withdrawal option.”

All these announcements will be implemented from April 1.