Public Provident Fund or PPF Rule 2019 says that an investor can’t have more than one PPF account against his or her name. If an earning individual has opened more than one PPF account — opened either of both accounts on or after 12th December 2019 under PPF Rules 2019 — then such PPF account(s) shall be closed without credit of PPF interest rate.
The Department of Economic Affairs at Ministry of Finance has already issued Office Memorandum (OM) in this regard. Putting an end to confusion regarding the amalgamation of such PPF accounts, the OM has made it clear that any proposal to merge such PPF accounts won’t be entertained. The OM was issued while addressing the PPF accounts merger proposal by Dr. Anupam Mishra.
In its Office Memorandum date 23rd February 2022, the Department of Economic Affairs at Ministry of Finance said, “In partial modification of this Department letter dated 14.02.2022, the undersigned is directed to refer to the case at serial number No.7 of Dr. Anupam Mishra regarding merger of the account No.7003137726 opened on 23.03.2021 in Indian Bank, KGM College, Lucknow Branch,” adding, “The said account was opened under the PPF Rules, 2019 and therefore, is not eligible for regularization. Accordingly, the account may immediately be closed without any interest payment and the provisions of PPF Rules, 2019 may strictly be complied.”
“The operating agencies are further advised not to send any proposal for consideration of merger of PPF accounts opened under the PPF rules, 2019 i.e. on or after 12.12.2019,” the OM concluded.
The circular further explained, “In case any one of the PPF accounts or all the PPF accounts is/are proposed to be merged or amalgamated is / are opened on or after 12.12.2019, such account(s) shall be closed without any interest payment and no no proposal should be sent to the Postal Directorate for amalgamation of such PPF Accounts.”