One is allowed to open only one PPF account in own name while another can be opened in minor child's name.
The Department of Posts, under the Ministry of Communication, has communicated to all the Head of Circles or Regions that the opening of PPF, SCSS, NSC, KVP, and MIS accounts is now being allowed in GDS Branch Post Offices. It will, however, be subject to certain conditions in the beginning. The move will allow rural investors to benefit from investing in these schemes.
The communication observes that the need to allow MIS/SCSS/ NSC/KVP/PPF schemes in GDS Branch Post Offices was raised from time to time. Under Government Savings promotion General Rules-2018 it has now been decided to allow the account opening in GDS Branch Post Offices.
However, the process for necessary modification in CBS application form or Finacle may take time. So, in order to facilitate rural customers to open an account under these schemes at the GDS Branch Post Offices, the following guidelines are issued for further necessary action.
Till the provisions are made available in CBS Application/Finacle:
i) Opening of PPF, SCSS, NSC, KVP, MIS account of any amount subject to minimum/ maximum limit, if any under each scheme and subsequent deposit in PPF account can be done at GDS Branch Post Offices through Cheque only (POSB Cheque/Bank Cheque).
ii) The process defined for acceptance of cheque and account opening through cheque in GDS Branch Post Offices will be as per the SB Order 2212020 dated 18.06.2020.
iii) For the opening of MIS/SCSS account in CDS Branch Post Office, the monthly/quarterly interest will be paid through respective customer’s PO Savings Account only. Likewise, in case of loan or withdrawal in PPF account, the same will be paid through respective customer’s PO Savings Account only.
iv) Respective account office will ensure the eligibility conditions/applicable limit of the schemes.
v) In case, Form 15G/15H is submitted by SCSS depositor at GDS Branch post Office, the GDS Branch Post Office will send the same to respective account office which will ensure updation of receipt in Finacle.
One is allowed to open only one PPF account in own name, another can be opened in minor child’s name. The tenure of PPF is 15 years and a minimum of Rs 500 and maximum of Rs 1.5 lakh ( self plus minor account) in each financial year can be deposited in the account. As all post office schemes are long term in nature, its better to link investments in them to one’s long term goals.