Ponmagan Scheme in Post Office: Interest Rate, Eligibility, Documents Required, Benefits

The Government of Tamil Nadu introduced the Post Office Ponmagan Podhuvaippu Nidhi Scheme, a social welfare initiative in 2015. The term ‘Ponmagan’ means ‘Golden Child’. The government launched this scheme to assist boy students facing economic and financial constraints.

What is Ponmagan Podhuvaippu Nidhi Scheme?

The Ponmagan Podhuvaippu Nidhi Scheme is necessary to promote inclusive education and ensure every student gets an education, even with financial constraints. This savings scheme encourages parents or guardians of economically weaker sections in Tamil Nadu state to save money for their boys’ education. The Department of Post administers this scheme. 

The minimum amount required to open the Ponmagan Podhuvaippu Nidhi Scheme (PPNS) account is Rs.100. The parents or guardians must deposit a minimum of Rs.500 per year under the Ponmagan Scheme. The maximum annual amount under the PPNS account is Rs.1.5 lakh. 

The PPNS account can be transferred across branches of post offices in India. The parents or guardians can open the PPNS account through cash or cheque payment. The nomination facility is available for this account.

Ponmagan Scheme in post office interest rate

The Tamil Nadu government decides the Ponmagan Scheme interest rate periodically. Currently, the interest rate of the Ponmagan Scheme is 9.7% p.a. The interest is compounded annually.

Ponmagan Scheme eligibility criteria

The eligibility criteria to open a PPNS account under the Ponmagan Scheme are as follows:

• Should be a male child resident of Tamil Nadu
• Studying in a government or government-recognised school or college in Tamil Nadu
• Should belong to the Economically Weaker Section (EWS) category
• Should not be receiving other financial assistance for education from the government
• Only one male child in a family can open the PPNS account
• PPNS account should be in the name of the boy child when the child is above 10 years
• Parents or guardians can open a PPNS account when the boy child is below 10 years

How to open Ponmagan Scheme online?

Step 1: Visit the nearest post office branch and get the Ponmagan Podhuvaippu Nidhi Scheme application form.

Step 2: Fill in the form and attach all the required documents.

Step 3: Submit the filled application form, required documents and the deposit amount to the post office officials.

Step 4: The officials will verify the application form and documents and open the PPNS account.

Ponmagan Scheme in post office documents required

• Ponmagan Scheme application form
• Passport-size photo of the boy child 
• Income certificate of parents or guardians 
• School certificate of the current academic year of the boy child
• Bank account details of the boy child
• Residence proof (Voter ID, ration card or Aadhaar card)

What is the maturity period for Ponmagan Podhuvaippu Nidhi?

The maturity period of the Ponmagan Podhuvaippu Nidhi Scheme is 15 years. It can be extended by five years within a year of maturity. Premature closure of the scheme before its maturity is not allowed. However, partial withdrawals are allowed from the seventh financial year of opening the PPNS account. 

Ponmagan Scheme benefits

• It is easily accessible to people at designated Tamil Nadu and Puducherry post offices.
• The minimum investment or deposit amount for the PPNS account is Rs.100, making it affordable for people.
• It offers a fixed interest rate, usually higher than the interest rates given by other small savings schemes. 
• Investors can claim tax benefits under Section 80C of the Income Tax Act for their investments in PPNS accounts.
• The government backs the scheme; thus, it is a safe investment option for financially weaker sections.
• The fixed interest rate provides an assured payment upon its maturity, helpful to fund the educational expenses of the boy child in future.

Ponmagan Scheme tax exemption

The  Ponmagan Podhuvaippu Nidhi Scheme provides tax exemptions for investments up to Rs.1.5 lakh under Section 80C of the Income Tax Act, 1961. The interest paid on the PPNS account is also tax-free. 

The Ponmagan Scheme has successfully provided financial assistance to thousands of boy students in Tamil Nadu to pursue their education without worrying about their financial burdens.

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