Holding more than one PPF account? Govt releases guidelines for amalgamation of Public Provident Fund accounts

By: |
October 26, 2021 11:38 AM

Whenever any depositor has opened more than one PPF account, the second and subsequent accounts opened are treated as irregular, as an individual can open only one single account under the PPF Scheme.

ppf account more than one, can we open ppf account in more than one bank, can more than one ppf account be opened, Public Provident Fund accounts, loan amount, interestIf there is any outstanding loan in any of the PPF accounts to be merged, the depositor has to repay the entire outstanding loan amount along with the interest.

One is not allowed to open more than one Public Provident Fund (PPF) account in his or her name. One can open a PPF account in a bank or at a post office, but only one account can be held in one’s own name. If there is more than one PPF account, one of them has to be closed. The government has recently released rules and Standard Operating Procedure (SOP) for dealing with cases of amalgamation of PPF accounts.

Whenever any depositor has opened more than one PPF account, the second and subsequent accounts opened are treated as irregular, as an individual can open only one single account under the PPF Scheme.

When more than one PPF account is held by an individual with one or more operating agencies (Operating agencies means Department of Posts and Bank) against the provisions in PPF Rules, the Department of Economic Affairs, Ministry of Finance, in relaxation of rules issues orders for amalgamation of the accounts of PPF subscribers, for regularization of irregular deposits / accounts.

Where the deposits made in both the accounts taken together are within the prescribed deposit ceiling, as applicable to the account from time to time, shall be allowed to be amalgamated and the account holder will be given an option to retain the account of his choice. The PPF accounts in the same operating agency could easily be amalgamated at the level of the operating agency by adopting the procedure of transfer of the PPF account.

If there is any outstanding loan in any of the PPF accounts to be merged, the depositor has to repay the entire outstanding loan amount along with the interest. That is, if there is any PPF loan account, it should be closed before the amalgamation of accounts is done. 5. During the process of amalgamation, the interest calculation is required to be done manually by the Head Post Offices.

Where the deposits made in both the accounts taken together are in excess of the prescribed deposit ceiling (currently Rs 1.5 lakh), applicable from time to time, the excess amount breaching the limit will be refunded to the subscriber from the account to be amalgamated without any interest.

Important to note is that the PPF account in the name of a minor is treated separately and a parent is allowed to open a separate minor account in addition to the account in self name.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Investing in Startups: Here’s all you need to know
2Crypto scams: How to spot, avoid and protect your money while investing in cryptocurrencies
3ICICI Pru launches Guaranteed Income for Tomorrow with two options – Check features