PPF Alert: If you have opened two or more Public Provident Fund (PPF) accounts on or after December 12, 2019, it will now be closed without any interest payment. Also, there will be no possibility of merger of such PPF accounts.
What is the rule?
Actually, according to the Public Provident Fund or PPF Rules 2019, an investor cannot have more than one PPF account in his name. If the earning person has opened more than one PPF account on or after 12th December 2019 then it will now be closed under this rule.
“If any of the PPF accounts are opened on or after 12.12.2019, such account shall be closed without any interest. Any proposal for payment and merger of such PPF accounts shall be made to the Directorate of Posts,” the circular read. should not be sent.”
For example
Suppose a person has opened one PPF account in January 2015 and another PPF account in January 2020, then these accounts cannot be merged. The account opened in January 2020 will be closed without any interest. In another case, if one account is opened in 2015 and another in 2018 by the same person, these accounts can be merged by requesting for amalgamation.
