According to the rules, no investor can open more than one PPF account. However in some cases additional accounts can be merged
PPF accounts are considered to be an attractive investment option, in such a situation, many times investors open more than one account. However, according to the rules , an investor can open only one PPF account . In order to give relief to investors having more than one account, the government has also given the facility to merge the accounts in special situations. But there are conditions for them.
At the end of February, the Finance Ministry has clarified the conditions for merging accounts through a circular. If you also have more than one PPF (Public Provident Fund ) due to any reason) accounts and you are trying to merge them to comply with the rules or think that you will merge them in the future, then know when you cannot merge the accounts. It has been clarified in the new circular that under what circumstances the account holders cannot merge two PPF accounts and in such situations what will happen to the other PPF accounts.
In which situations relief will not be available
According to the PPF Rules 2019, an investor cannot have more than one PPF account in his name. If an investor has opened more than one account as per PPF Rules 2019 on or after 12th December 2019, then such additional accounts will be closed and PPF interest will not be payable on them. According to the circular issued by the Ministry of Finance, the government has cleared the picture regarding the merger of accounts opened on or after this date. According to the circular, if you have opened additional accounts after November 12, 2019, then you cannot merge them. No interest will also be payable on such additional accounts.
What are the rules regarding PPF account?
PPF is an option to get secured returns. However, according to the rules, a person can open only one PPF account. However, many times people open more than one PPF account due to lack of information. According to the rules of the government, the accounts opened later in such a situation are considered as irregular accounts. And they are turned off. However, last year, the government had announced exemption in some cases in case of more than one account and allowed to merge more than one account in special circumstances.
According to these rules, the investor can maintain any account as per his choice. And can merge other accounts if they meet the rules. According to the rules, the amount deposited in both the accounts should be within the prescribed limit. However, now the government has given an explanation regarding this rule that in which situation the accounts cannot be merged. At present, investors on PPF have to pay 7.
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