PPF account merge: Public Provident Fund (PPF) is a good way to invest. The main reason for this is tax exemption on the amount invested in it, tax free return on maturity and the hand of the government. At present, the annual interest rate on PPF is 7.1 percent at present. The rules related to PPF accounts are strict. If you have opened more than one PPF account then you may be in trouble.
New Delhi. Public Provident Fund (PPF) is a good way to invest. The main reason for this is tax exemption on the amount invested in it, tax free return on maturity and the hand of the government. At present, the annual interest rate on PPF is 7.1 percent at present. The rules related to PPF accounts are strict. If you have opened more than one PPF account then you may be in trouble.
If a depositor has opened more than one PPF account, then the second and subsequent accounts opened are considered irregular. But in some cases some relaxation is given in PPF. Ministry of Finance regularizes such irregular accounts/deposits by merging more than one PPF account into a single account.
Postal department told the process of merging
The Department of Posts recently issued a circular in which it was told about the process of having multiple PPF accounts and merging multiple PPF accounts into a single PPF account.
As per the circular, whenever a depositor has opened more than one PPF account, the second and subsequent accounts are treated as irregular, as a person can open only one account under the PPF scheme. In such a situation, if two PPF accounts have been opened inadvertently, then merge one account with the other. This is necessary as the PPF account cannot be closed before maturity. In this case, you only get the option of merging.
The depositor has this option
Investors will have the option to maintain a PPF account of their choice. The condition for this is that the amount deposited in both the accounts should be within the prescribed deposit limit. At present it is Rs 1.5 lakh per business year. If you have more than one PPF in different banks or two accounts in post office, then PPF account can be easily merged using the process of transfer.
Rules for opening PPF account
This account with a maturity period of 15 years can be opened in any bank or post office. But a person can open only one PPF account in his name. Whether it is opened in the bank or in the post office.
