PPF Account Merger Rules: A Public Provident Fund account can be held in one’s own name and in the name of the minor child, and the total contribution in both of such accounts cannot exceed the maximum amount of Rs 1.5 lakh in a financial year. As per the PPF rules, if more than one account has been opened, then they need to be merged or amalgamation of accounts has to take place. According to PPF merger rules, any such merger is subject to the date of opening of the PPF account.
If any one or all the PPF accounts are opened on or after December 12, 2019, then they have to be closed without any interest amount and no amalgamation or merger of accounts will be allowed.
The Department of Economic Affairs (Budget Division), Ministry of Finance has issued a department letter to all head post offices stating – “In case any one of the PPF accounts or all the PPF accounts is/are proposed to be merged or amalgamated is / are opened on or after 12.12.2019, such account(s) shall be closed without any interest payment and no proposal should be sent to the Postal Directorate for amalgamation of such PPF Accounts.”
Earlier also in February 2022, the DEA had advised not to send any proposal for consideration of merger i.e. amalgamation of PPF Accounts opened under the PPF Rules 2019.
Therefore, the cut-off date for merger of PPF accounts stands at December 12, 2019 and any PPF account opened post that date is not eligible for regularization.
If the PPF accounts have been opened earlier then they can be merged if the deposits made in both the accounts taken together are within the prescribed deposit ceiling. In that case, for the purpose of merger, the account holder will be given an option to retain the account of his choice.
Where the total amount contributed in both the accounts taken together are in excess of the mandated limit of Rs 1.5 lakh), the excess amount breaching the limit is refunded to the subscriber from the account to be amalgamated without any interest.