No one will be allowed to have more than one Public Provident Fund (PPF) account. Multiple PPF accounts opened after December 12, 2019, will be closed without interest being paid on it, said an Office Memorandum of the Department of Economic Affairs at Ministry of Finance.
Multiple Public Provident Fund (PPF) accounts opened after December 12, 2019 will be closed without any interest payment, the Department of Economic Affairs at Ministry of Finance’s Office Memorandum (OM) said. According to the PPF rules, 2019, nobody can have more than one PPF account against their name.
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Merger of multiple PPF accounts is also not allowed. However, multiple accounts that were opened before this date can be merged by requesting for amalgamation.
The memorandum has asked not to send any such proposals for consideration of merging PPF accounts as per PPF rules, 2019. Any such requests will not be entertained.
“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,” the circular stated as reported by The Economic Times.
Many people end up opening two PPF accounts with different banks or with a bank and a post office. In such a case, people who have opened the second account after December 12, 2019 will lose their account without any interest payment.
For instance, if a person opened a PPF account in 2015 and another PPF account in 2020, these accounts cannot be merged as per the new rules and the second account opened in 2020 will be closed without interest payment. However, in a different case where an account is opened in 2015 and another in 2018 by the same person, then these accounts can be merged requesting for amalgamation.
Read Also | How can you revive a dormant PPF account?
(Edited by : Thomas Abraham)