A large number of people are opening Public Provident Fund (PPF) accounts for investment and savings. If you have also opened a PPF account and you have got two accounts in your name, then close one account as soon as possible.
Actually, the rule regarding PPF is that a person can open only one account in his name. Whether he gets it opened in the post office or in the bank. Since, the rules do not allow to have two PPF accounts, so if someone has opened two PPF accounts, then both the accounts should be merged and closed.
What does the postal department’s circular say
In the circular issued by the Department of Posts, it has been said that if you have opened two or more PPF accounts on or after December 12, 2019, then it will be closed without payment of any interest. Apart from this, there will be no possibility of merger of such PPF accounts. The Department of Economic Affairs (Budget Division) of the Ministry of Finance has not sent any proposal for merger of accounts opened after the due date under the PPF Rules 2019.
Understand the rules in simple words
If a person has opened one PPF account in January 2016 and another PPF account in January 2020, then these accounts cannot be merged. Also, the account opened in January 2020 will be closed without any interest. However, if one account is opened in 2016 and the other in 2017 by the same person, then these accounts can be merged to form one account.
How to apply for account merger
Actually, the second account of PPF is considered to be a regular account and interest is not paid on deposits in it. Also, there may be a penalty for having two accounts. It would be better if you merge both the accounts. For this, the Department of Economic Affairs (DEA) of the Ministry of Finance has to be informed. You can give a written application to the Under Secretary- NS Branch MOF (DEA), New Delhi-1 through the post office to merge the details of both the PPF accounts.