Thursday, May 19 2022

The Public Provident Fund or PPF Rule 2019 states that an investor cannot have more than one PPF account in his name. If a winner has opened more than one PPF Account – either opened on or after December 12, 2019 under the 2019 PPF Rules – then such PPF Account(s) will be closed with no PPF Interest Rate Credit.

The Department of Economic Affairs of the Ministry of Finance has already issued a memorandum (OM) in this regard. Putting an end to the confusion regarding the merger of these PPF accounts, the OM made it clear that any proposal to merge these PPF accounts would not be considered. The OM was released during the review of the PPF Account Merger Proposal by Dr. Anupam Mishra.

In its office memorandum dated February 23, 2022, the Department of Economic Affairs of the Ministry of Finance stated: “In partial modification of this letter from the Department dated 14.02.2022, the undersigned is referred to case number Series No. 7 of Dr. Anupam Mishra regarding Merger of Account No. 7003137726 opened on 23.03.2021 at Indian Bank, KGM College, Lucknow Branch,” adding, “The said account was opened under PPF Rules, 2019 and is therefore not eligible for regularization. Accordingly, the account may be immediately closed without any interest payment and the provisions of the PPF Rules, 2019 may be strictly adhered to.”

“Operating Agencies are further advised not to submit a Merger Review proposal for PPF accounts opened under the PPF Rules, 2019 i.e. as of 12.12.2019,” said concluded OM.

The circular further explained: “In the event that any or all of the PPF accounts is/are proposed to be merged or merged is/are opened on or after 12.12.2019, such account(s) will be closed without any interest payment and no proposal shall be sent to the Post Office for the merger of these PPF accounts.”

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