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Opened two or more PPF accounts? Check merger rules now or you could lose money
If an individual had opened a second PPF account on or post-December 12, 2019, such account or accounts will be closed in case of a merger.
Highlights
- Investors won't receive interest in such cases.
- Department of Economic Affairs has clarified that the authority won’t entertain any proposal related to the merger of PPF accounts.
New Delhi: Are you saving your money in a Public Provident Fund or PPF account? If yes, then you should know that an investor isn't allowed to open more than one PPF account against his/her name, according to the Public Provident Fund or PPF Rule 2019.
However, if an individual had opened a second PPF account on or post-December 12, 2019, such account or accounts will be closed. In these cases, the authorities are not even liable for issuing the credit of the PPF interest rate.
In a recent Office Memorandum dated 23rd February 2022, the Department of Economic Affairs, Ministry of Finance, clarified that the authority won’t entertain any proposal related to the merger of PPF accounts.
The department noted in its official memorandum noted “in the case of Dr. Anupam Mishra regarding the merger of the account No.7003137726 opened on 23.03.2021 in Indian Bank, KGM College, Lucknow Branch…the said account was opened under the PPF Rules, 2019 and therefore, is not eligible for regularization.”
“Accordingly, the account may immediately be closed without any interest payment and the provisions of PPF Rules, 2019 may strictly be complied," the department said in its office memorandum.
"The operating agencies are further advised not to send any proposal for consideration of merger of PPF accounts opened under the PPF rules, 2019 i.e. on or after 12.12.2019," the memorandum was quoted in a report by Mint. Also Read: YouTube creators contributed Rs 6,800 cr to Indian economy in 2020
The department also explained that if PPF account/s (opened on or after 12.12.2019) is/are proposed to be merged, 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. Also Read: ASUS unveils 2-in-1 Vivobook laptop in India
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