PPF Interest Rate Post Office Bank Account Merge Rules
New Delhi: The public provident fund (PPF) scheme is very popular with investors. Under this system, any natural person can only open one bank or postal account. In the event of multiple accounts against an individual, accounts other than the first will be deemed irregular. However, there are some relaxations, as the Union Ministry of Finance is merging several accounts into one, although in some cases. The Postal Department, under the Ministry of Communications, has issued a detailed circular in this regard containing the standard operating procedure for the merger of more than one PPF account held by the depositor.Also Read – Public Provident Fund: Invest Only Rs 10,000 Each Month And Earn Up To Rs 1 Crore After Maturity
PPF interest rate 2021-22
An interest rate of 7.1 percent is provided per annum (compounded annually) under the PPF scheme. The minimum deposit of Rs 500 in a financial year and the maximum deposit is Rs 1.50 lakh in a financial year. Deposits can be made as a lump sum or in installments. While deposits are eligible for deduction under Section 80C of the Income Tax Act, interest earned is exempt from tax under the Income Tax Act. Only one loan can be taken out during a fiscal year under the PPF scheme and the second loan does not have to be granted until the first loan has been repaid. Read also – No reduction in interest on small savings plans: the Ministry of Finance withdraws the orders “issued by surveillance”
PPF account merge rules
If the deposits made in the two accounts taken together do not exceed the prescribed deposit limit, as applicable to the account from time to time, then these may be merged and the account holder will have the option of keeping the deposit. account of his choice. Also Read – New PPF Rules: Top 5 Changes Holders of Public Provident Fund Accounts Need to Know
The PPF accounts of the same farm could easily be merged at the farm level by adopting the PPF account transfer procedure.
Merging PPF accounts into different operating agencies requires interaction between the two operating agencies.
In such cases, the depositor will submit the merger request to the accounts office where he intended to keep the account, together with a photocopy of the passbook / account statement.
Subsequently, the accounts office will forward the file to the other accounts office where the account to be merged is located and will ask to verify / send the details of the annual contributions for all years.
When deposits made to the two accounts taken together exceed the prescribed deposit limit applicable from time to time, the excess amount exceeding the limit will be refunded to the subscriber of the account to be merged without any interest. The accounts office will adjust the interest entry before transferring the balance to the accounts office, where the account intended to be kept is located.
When a PPF depositor submits an application to keep their account with the post office, the following procedure should be followed by the main post offices after ensuring that the merger has been ordered / approved by the Ministry of Finance.
If one account is managed at the post office (PO) and another is managed at the bank and the customer wants to keep the account at the post office, the bank will issue the check along with the account transaction details to the bank.
Accounts managed either at the same post office (PO) or at different post offices can also be maintained at any post office.