PPF accounts merger: Govt points pointers for coping with such circumstances
Under the PPF or public provident fund scheme, a person can open just one single account. Whenever any depositor has opened a couple of PPF accounts, the second and subsequent accounts opened are handled as irregular. But some leisure is given in some circumstances, contemplating the requests of the PPF subscribers. The ministry of finance regularizes such irregular accounts/deposits by amalgamating a couple of PPF accounts into one account.
It is to be famous that if there may be any PPF mortgage account, it ought to be closed earlier than the amalgamation of accounts is finished. That means if there may be any excellent mortgage in any of the PPF account to be merged, the depositor shall be requested to repay the complete excellent mortgage quantity together with the curiosity.
The Department of Post has provide you with customary working process for put up places of work for coping with amalgamation request from PPF account holders after the receipt of the concurrence of Ministry of Finance.
Amalgamation of a couple of PPF accounts – Standard Operating Procedure:
-In circumstances the place deposits made in each the PPF accounts taken collectively are inside within the prescribed ceiling, as relevant to the account occasionally, the account holder will likely be given an choice to retain the account of his alternative. The PPF accounts in the identical working company may simply be amalgamated on the degree of working company by adopting the process of switch of the PPF account.
But amalgamation of PPF accounts in several working company requires interplay between each the working businesses. In such circumstances, the depositor will submit the request for amalgamation to the accounts workplace (Post Office or Bank) the place he intends to retain the account, together with photocopy of the passbook / assertion of account.
Thereafter, the accounts workplace will ahead the case to different accounts workplace (the place the account stands which is to be merged) and request to confirm/ship the small print of annual subscriptions of all of the monetary years. The accounts workplace will then work out the annual subscriptions deposited by the account holder in all of the PPF accounts protecting in view the prescribed deposit ceiling underneath PPF scheme declared/ determined by the federal government occasionally. On affirmation subscriptions don’t breach prescribed deposits ceiling of any of the monetary 12 months, the accounts workplace will request the opposite accounts workplace to shut the account and switch the balances within the account protecting in view the related provision of the PPF Scheme.
The date of opening of the retained account shall be deemed because the precise opening of the account for the calculation of maturity and different functions.
Where the deposits made in each the accounts taken collectively are in extra of the prescribed deposit ceiling, relevant occasionally, the surplus quantity breaching the restrict will likely be refunded to the subscriber from the account to be amalgamated with none curiosity.
The accounts workplace will alter the curiosity entry earlier than transferring the stability to the account workplace, the place the account stands supposed to be retained. The date of opening of the The date of opening of the retained account shall be deemed because the precise opening of the account for the calculation of maturity and different functions.
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