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THE PUBLIC PROVIDENT FUND SCHEME, 1968
[Issued vide Government of India, MOF (DEA) Notification No. GSR 1136 dated 15.6.1968 and further amended from time to time]
Note:- The scheme was introduced in Head Post Offices w.e.f. 1.1.1979 vide Annexure 1 and Selection Grade sub post offices w.e.f. 1.7.1988 vide Annexure 2. The nationalized banks as detailed in Annexure-3 were authorized to accept subscriptions under paragraph 2 of the PPF Scheme w.e.f. 1.1.1988. Some branches of the Corporation Bank (Nationalised Bank) as detailed in Annexure 4 were authorized to accept subscriptions w.e.f. 27.8.2003.
GSR 225(E) : - In exercise of the power conferred by Section 3 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government hereby makes the following rules further to amend the public Provident fund Scheme 1968, namely:-
1. Short title and commencement: - (1) These rules may be called the Public Provident Fund Scheme(Amendment) Rules, 2014.
(2) They shall come into force on the date of their publication in the official Gazette.
[MOF (DEA) Notification No GSR 225 (E) dated 13.03.2014]
2. Definitions : - In this scheme, unless the context otherwise requires:-
(a) ‘ Account’ means a Public Provident Fund Account under this scheme.
(b) ‘Accounts Office’ means an office or branch of the State Bank of India, any subsidiary bank of the State Bank of India (excluding a pay office, a sub pay office or any other office managed by single officer or clerk) and any other office authorized by the Central Government to receive subscriptions under the scheme;
(c) ‘ Accounts Officer’ means the person who for the time being is in charge of an Accounts Office.
(d) ‘ Act’ means the Public Provident Fund Act, 1968 (23 of 1968)
(e) ‘Form’ means a form appended to this scheme;
(ee) ‘Guardian’ in relation to a minor, means:-‘
(i) Father or mother and
(ii) Where neither parent is alive, or where the only living parent is incapable of acting, a person entitled under the law for the time being in force to have care of the property of minor;
(f) ‘ Year’ means the financial year (1st^ April to 31st^ March)
3. Limit of subscription :- (1) Any individual may, on his own behalf or on behalf of a minor of whom he is the guardian, subscribe to the Public Provident Fund (thereafter referred to as the fund) any amount not less than **500 and not more than** 1,00,000 in a year. (2) Notwithstanding anything contained in sub-paragraph (1), an individual may also subscribe to the fund on behalf of:-
(a) HUF- Deleted vide MOF Notification No. GSR 291 (E) dated 13.05. (b) An Association of persons- Deleted vide MOF Notification No. GSR 291 (E) dated 13.05.
(3) Non Resident Indians are not eligible to open an account under the Public Provident Fund Scheme:-
Provided that if a resident, who subsequently becomes Non Resident Indian during the currency of the maturity period prescribed under Public Provident Fund Scheme, may continue to subscribe to the Fund till its maturity on a Non Repatriation Basis.
[MOF (DEA) Notification No GSR 585 (E) dated 25.7.2003]
CLARIFICATIONS
(1) The accounts if any opened by juristic person (HUF, Trusts etc.) i.e. Persons other than individual on or after 13.5.2005, under PPF, shall be treated as void ab initio and immediate action should be taken to close such account and refund the deposits without any interests to the depositors. Further existing accounts in operation prior to the amendment date 13.5.2005, shall continue till maturity and deposits/withdrawals in/from these accounts shall be allowed to be made in accordance with the said rules. However, any extension of existing accounts shall be subject to the amendments dated 13.5.2005.
[MOF letter F No. 2/8/2005-NS-II dated 20.5.2005]
(2) An amendment was made to Rule 3 of PPF Scheme 1968 vide MOF Notification No. GSR 585 (E) dated 25.7.2003; Non Resident Indians are not eligible to extend/continue PPF account after maturity. It has been clarified by the Ministry of Finance that accounts opened under such category cannot continue beyond maturity; therefore any subscription
[DG Posts letter No. 1-23/75-SB dated: 8.2.1979]
(9) Only one account can be opened in one name. If two accounts are opened by the subscriber in his name by mistake, the second account will be treated as irregular account and will not carry any interest unless the two accounts are amalgamated with the approval of the Ministry of Finance (DEA). For this purpose the subscriber will have to write to the Under Secretary-NS Branch MOF (DEA), New Delhi-1 through the Accounts Office giving detail of each account.
(10) If contributions in excess of 1,00,000 are made during a year by the subscriber, the deposits in excess of 1,00,000 will be treated as irregular subscriptions and will neither carry any interest nor this excess amount will be eligible for rebate under Section 80-C of the Income Tax Act. This excess amount will be refunded by the Accounts Office to the subscriber without any interest.
[MOF (DEA) letter No F.3(1)-PD/70 dated 24.9.1970 and N.S.C. Nagpur letter No. 12235/Tech/PPF/20-3/98 dated: 20.7.1998]
(11) Opening of Accounts in joint names or in the name of artificial/Juridical persons:- According to Rule 3 of the Public Provident fund Scheme, 1968, a PPF account can be opened by an individual in his own name or on behalf of a minor of whom he is the guardian. The Ministry of Finance (DEA) has clarified that the PPF account cannot be opened in the joint names. Further such accounts cannot be opened in the name of an artificial/juridical person. The accounts office should ensure at the time of opening a PPF account that the account is opened correctly as per Rule 3 of the PPF Scheme to avoid further complications.
[MOF (DEA) letter No.F.3 (1)-PD dated 24.9.1970 and D.G. Posts letter No. 1-23/75-SB dated 15.11.1979]
(12) The HUF account will not be closed before maturity on the death of the Karta but it will continue by the new Karta appointed by the HUF.
(13) If the account is opened in the name of the minor and the minor attains majority before the maturity of the accounts, the ex-minor will himself continue the account thereafter. He will submit a revised application form for opening the account and nomination form to the Account Office. His signature on the application form will be attested by the guardian who opened the account of the minor or by a respectable person known to the Accounts Office.
(14) If the subscriber dies during a year, his executors cannot deposit any sum from the income of the deceased to his PPF account after his death. If they do so, the amount deposited shall neither carry interest nor shall this amount be
eligible for rebate. This amount will be refunded without interest to the nominee/legal heir, as the case may be, at the time of closure of the account.
(15) There is no bar in opening a PPF account by an illiterate subscriber. For this purpose the thumb impression of the subscriber will be attested by a respectable person known to the Accounts Office. The procedure for opening a savings account by a illiterate depositor will be followed. The blind person will be treated as illiterate subscriber. The attestation should be in the following terms:- “The subscriber is known to me and his thumb impression/mark has been affixed in my presence.”
(16) For opening of a PPF account Form-A appended to the Scheme has been prescribed. This form does not contain provision for the nomination. A separate Form-E for nomination appended to the Scheme has been prescribed for this purpose. Both these forms may be supplied by the Accounts Office to the subscriber to be filled up at the time of opening of the account.
(17) There is no maximum limit of age for a person to open a PPF account. A person of any age can open an account.
(18) Those having General Provident Fund or Employee’s Provident Fund account can also open a Public Provident Fund Account.
(19) Opening/operations of a PPF account by a Power of Attorney holder:- The matter has been considered in this Department. It is clarified that in the absence of a specific provision in the PPF Scheme, 1968, a Power of Attorney holder can neither open a PPF account nor operate any PPF account on behalf of a subscriber.
[MOF (DEA) letter No.F.7/72004-NS.II dated 12.4.2004]
4. Manner of making the subscription:- (1) Every individual desirous of subscribing to Fund under the Scheme for the first time either on his own behalf or on behalf of a minor of whom he is the guardian shall apply to the Accounts Office in Form A, together with the amount of initial subscription which shall be minimum of ` 100/-.
(2) On receipt of an application under sub-paragraph(1), the Accounts Office shall open an account in the name of the subscriber and issue a pass book to him, wherein all amount of deposits, withdrawals, loans and repayment thereof together with interest due shall be entered over the signature of the Accounts Officer with the date stamp.
Provided that in case of Post Offices working on Core Banking solution platform, a statement of account shall be issued in place of passbook at the discretion of account holder. [MOF (DEA) Notification No GSR 225 (E) dated 13.03.2014]
(3) When the deposit is made by means of a local cheque or draft by the subscriber, the date of realization of the amount will be treated as the date of deposit.
[MOF (DEA) letter No. F.7/7/2008-NS-II dated 10.2.2010]
(4) The account in which the subscriptions are discontinued any time after the expiry of the financial year in which it was opened and the subscriber is unable to continue it further will be treated as discontinued. The subscriber will get back his amount only after the expiry of maturity period of 15 years alongwith interest which will continue to be added each year on the balance at rate fixed from time to time. The facility of loan and withdrawal will not be allowed from such an account.
(5) A discontinued account can be revived during the period of maturity only. It cannot be revived after maturity nor can it be closed before maturity. The account will continue to earn interest till it is closed after maturity.
(6) The subscription can be deposited in the account in multiples of 5/- either in lump sum or in installments subject to the condition that the total amount deposited in a year should not be less than 500 and more than ` 1,00,000.
5. Number of subscription: The subscription, which shall be in multiples of ` 5/- may, for any year, be paid into the account in one lump sum or installments not exceeding twelve in a year.
Clarification :- A subscriber can pay his subscription in more than one installment in a calendar month provided the total number of installments paid in a financial year does not exceed 12. He can vary the amount of subscription to suit his convenience.
[Ministry of Finance (DEA) letter No. F.3 (8)-PD/72 dated 6.8.1972]
6. Transfer of Account:- A subscriber may apply for transfer of his account from one “Account Office” to another “Account Office”.
Clarification :- The PPF account standing open in the State Bank can be transferred to the Head Post Office or Nationalized bank or selected private banks and vice-versa. The account standing in a nationalized bank can be transferred to other nationalized bank or State Bank or selected private bank or Head Post Office and vice-versa.
7. Issue of duplicate pass book, etc.:- (1) In the event of loss or destruction of a pass book issued by an Accounts Office, the Accounts Office may, on an
application made to it in this behalf, and on payment of rupee one by the subscriber, issue a duplicate thereof to him.
(2) Condonation of default:- A subscriber who fails to subscribe in any year according to the limits specified in paragraph 3, may approach the Accounts Office for condonation of the default, on payment , for each year of default , a fee of 50 alongwith arrear subscription of 500 for each year.
[MOF (DEA) Notification No. GSR 768 (E) dated 15.11.2002]
Note: The revised rate of defaulted subscriptions and default fee will also be applicable to the defaults occurred in the previous years prior to 2002-2003 if deposited after 15.11.2002.
8. Interest - Interest at the rate, notified by the Central Government in official gazette from time to time, shall be allowed for calendar month on the lowest balance at credit of an account between the close of the fifth day and the end of the month and shall be credited to the account at the end of each year.
Provided that where the interest to be credited contains a part of a rupee then, if such part is fifty paise or more, it shall be increased to one complete rupee, and if such part is less than fifty paise, it shall be ignored.
Note :- In case where withdrawals are made during the year from 1986- 87 to 1988-89, an amount equivalent to one per cent of the amount withdrawn, rounded to the nearest rupee, shall be deducted from the interest creditable to the account of the subscriber. This recovery has been discontinued w.e.f. 1.4.1989.
[MOF (DEA) Notifications No. F.6 (1)-PD/86 dated 30.4.1986 and NO. S.O. 279 (E) dated 2.4.1989]
CLARIFICATIONS
(1) The subscriptions in the PPF account start earning interest from the date of their deposits i.e. even before they reach the level of ` 500/- in a year.
[NSC Nagpur letter No. 29/70/1(6) CR/68-III dated 1.1.1972]
(2) A doubt has been raised whether interest would be admissible on PPF accounts in case of discontinuance of subscriptions. It has been clarified by the Ministry of Finance that it is not intended to disallow interest in such cases and interest has to be added to all the accounts.
SCHEDULE
Rates of interest payable in PPF accounts as fixed from time to time since the introduction of the scheme. Year Rate of interest (p.a.) 1968-69 4.8% 1969-70 4.8% 1970-71 5% 1971-72 5% 1972 - 73 5% 1973-74 5.3% From 1.4.1974 to 31.7.1974 5.8% From 1.8.1974 to 31.3.1975 7% 1975-76 7% 1976-77 7% 1977-78 7.5% 1978 - 79 7.5% 1979-80 7.5% 1980-81 8% 1981-82 8.5% 1982-83 8.5% 1983-84 9% 1984-85 9.5% 1985-86 10% From 1.4.1986 to 31.3.1999 12% From 1.4.1999 to 14.1.2000 12% From 15.1.2000 to 28.2.2001 11% From 1.3.2001 to 28.2.2002 9.5% From 1.3.2002 to 28.2.2003 9% From 1.3.2003 to 30.11.2011 8% From 1.12.2011 to 31.3.2012 8.6% From 1.4.2012 to 31.3.2013 8.8% From 1.4.2013 onwards 8.7%
9. Withdrawals from the Fund:- (1) Any time after the expiry of five years from the end of the year in which the initial subscription was made , a subscriber may, if he so desires, apply in Form C or as near thereto as possible, together with his pass book to the Accounts Office withdrawing from the balance to his credit, an amount not exceeding fifty per cent of the amount that stood to his credit at the end of the forth year immediately preceding the year of withdrawal or at the end of preceding year, whichever is lower, less the amount of loan, if any, drawn by him under paragraph 10 and which remains to be repaid:
Provided that not more than one withdrawal shall be permissible during any one year.
(2) On receipt of an application under sub paragraph (1) the Accounts Office may, after satisfying itself that the amount of withdrawal applied for is not in excess of the limit prescribed in sub-paragraph (1) and that the applicant has, till the date of application, been subscribing according to the limit specified in paragraph 3, subject to the provisions of sub-paragraph (4) permit the withdrawal and enter the amount withdrawn in the pass book.
(3 ) Closure of account or continuation of account without deposits after maturity :- Notwithstanding the provisions of sub-paragraph (1), any time after the expiry of 15 years from the end of the year in which the initial subscription was made by him, a subscriber may, if he so desires, apply in Form C or as ‘near thereto as possible together with his pass book to the Accounts Office for the withdrawal of the entire balance standing to his credit and the Accounts Office, on receipt of such an application from the subscriber, shall subject to the provisions of sub-paragraph (4) allow the withdrawal of the entire balance (together with interest up to the last day of the month preceding the month in which the application for withdrawals is made) after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him and close his account. Provided that a subscriber may, if he so desires, make withdrawal of the amount standing to his credit, from time to time, in installments not exceeding one in a year.
Provided further that an account opened on behalf of a Hindu Undivided Family prior to the 13th^ day of May, 2005, shall be closed after expiry of fifteen years from the end of the year in which the initial subscription was made and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him. In the case of accounts opened on behalf of Hindu Undivided Family, where fifteen years from the end of the year in which initial subscription was made, has already been completed, they shall also be closed at the end of the current year i.e. the 31st^ day of March, 2011 and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him.
[MOF Notification No. GSR 956 dated 7.12.2010]
(3A) Continuation of account with deposits after maturity:- Subject to the provisions of sub-paragraph (3) a subscriber may, on the expiry of 15 years from the end of the year in which the initial subscription was made but before the expiry of one year thereafter, may exercise an option with the Accounts Office in Form H, or as near thereto as possible, that he would continue to subscribe for a further block period of 5 years according to the limits of subscription specified in paragraph 3.
(4) As per proviso to Rule 9(3) the subscriber can retain his account after maturity without making any further deposits for any period without limit. For this purpose, it is not necessary to give option in writing. It is automatic. Form H has since been amended. The balance in the account will continue to earn interest at the normal rate applicable to PPF accounts. The subscriber can make one withdrawal in each financial year of any amount within the balance. Once the account is continued without deposits, for more than a year, the subscriber cannot opt again to continue the account with deposits for a block period of 5 years.
[MOF (DEA) Notification No. F.3(6)-PD/86 dated 20.8.1986]
(5) According to Rule 9 (3A) and (3B) the subscriber can continue to make deposits after the maturity of an account for one or more further blocks of 5 years without any loss of benefit. For this purpose he will give his option in writing to the Accounts Office in Form H within one year from the date of maturity of the account. If the subscriber fails to give his option to continue the account within one year but continues to make deposits in the account, these deposits will be treated as irregular deposits and will not carry interest. Further these deposits will not earn rebate under Section 80-C of Income Tax Act unless the account is regularized by the Ministry of Finance (DEA). For this purpose the subscriber will have to write to the Ministry of Finance, (DEA) NS Branch through the Accounts Office for regularizing the account which was continued by him without giving the option.
[MOF (DEA) letter No. F.7/8/88-NS II dated 11.8.1992]
(6) As per Rule 9 (3B), if the PPF account is continued after maturity for a further block period of 5 years, the subscriber is eligible to make partial withdrawals not exceeding one every year subject to the condition that the total of the withdrawals, during the 5 year block period, shall not exceed 60 per cent of the balance at his credit at the commencement of the said period. This amount can be withdrawn either in one installment (one year) and or in more than one installment in different years as per requirements of the subscriber. Similarly during the second block period of 5 years the subscriber can withdraw 60% of the whole amount at credit at the commencement of the second block period either in one year or in different years not exceeding one withdrawal in a year. This limit of withdrawal will apply on commencement of every extension of block period of 5 years.
[MOF (DEA) letter No. F.7/2/97-NS II dated 9.2.1988]
(7) If the account is continued with deposits for one or more block period of 5 years, the subscriber can leave the account without deposits on completion of any block period. The account will continue to earn interest till it is closed and the subscriber can make one withdrawal every year form the account.
(8) The Account Offices should not accept further subscriptions from the account holders whose accounts have matured unless they give option in writing in Form H to continue the account. For this purpose they should prepare a list of such accounts which should be kept with the counter Assistant so that it may be referred to when deposits in such accounts are received. The list should be updated on 1st^ April each year.
(9) A PPF account can be closed after the expiry of 15 financial years from the end of year in which the account was opened. For example, if the account was opened during the year 1984-85, the account can be closed on or after 1.4.2000 at the option of the subscriber. The account will continue to earn interest till it is closed.
(10) A question was raised whether a subscriber whose account has matured and he leaves the matured account without further deposits, can open a new PPF account as he will not be maintaining his existing account i.e. he will not be subscribing to the said account. The matter was referred to the Ministry of Finance (DEA) for clarification on this point. The MOF (DEA) has clarified that since the facility of extension for further block periods of 5 years has been provided in the scheme, the subscriber should extend the account instead of opening the new account. Had the facility of extension not been provided in the PPF Scheme, the subscriber could open a new account. In view of this facility the subscriber cannot open a new account in addition to his existing matured account.
[MOF (DEA) letter NO. F.7/2/97-NS II dated 9.2.1998]
(11) From rule 9 and clarifications given below this rule it will be seen that the subscriber, on maturity of the account, has the following three options before him. He has to choose one out of these:-
(i) To close the account; or (ii) To continue the account for any period without further deposits and make one withdrawal in a year. The balance in the account will continue to earn interest at normal rate till the account is closed. There is no need to give in writing about this option to the Accounts Office. This is automatic; or
(2) On receipt of an application under sub-paragraph (1) the Accounts Office may, after satisfying itself that the amount of loan applied for is not in excess of the limit prescribed in sub-paragraph (1) and that the applicant has, till the date of application, been subscribing according to the limit specified in paragraph 3, subject to the provisions of sub paragraph (3), sanction the loan and enter the amount in the pass book.
(3) Where the application is made by a person who has made subscriptions to the Fund on behalf of a minor of whom he is the guardian, he shall furnish a certificate in the following form, namely:-
‘Certified that the amount for which loan is applied for is required for the use of ……. Who is alive and is still a minor.”
(4) A subscriber shall not be entitled to get a fresh loan so long as earlier loan has not been repaid in full together with interest thereon.
CLARIFICATIONS
(1) The first loan can be taken in the third financial year from the financial year in which the account was opened upto 25% of the amount at credit at the end of the first financial year. Thus, if an account was opened in 1996-97, the first loan may be drawn in 1998-1999, upto 25 per cent of the amount including interest for 1996-97 at credit in the account as on 31.3.1997. Further loans can be taken provided earlier loan(s) have been repaid in full with interest @ 2 per cent per annum as prescribed in para 11. If one takes loan in 4th^ or 5th^ or 6th^ financial year, he can take loan upto 25% of the balance at his credit at the end of 2nd^ or 3rd^ or 4th financial year respectively. No loan can be taken after the end of the 6th^ financial year form the financial year in which the account was opened.
(2) The loan can be taken only once in a year even though the loan taken in the year is repaid in the same year as the limit of amount of loan is fixed for each year. For example, if the account is opened during 1996-97, the first loan can be taken during 1998- to the extent of 25% of the balance as on 31.3.1997. If the said loan is also repaid during 1998-99 the second loan cannot be taken again during 1998-99 as the limit of loan i.e. 25% of the balance as on 31.3.1997 has already been exhausted. The next loan can be taken only during 1999-2000 to the extent of 25% of the balance as on 31.3.1998.
(3) A subscriber who has not maintained his subscriptions in accordance with paragraph 3 of the scheme and has defaulted in subscriptions in any year, either by non-payment of subscriptions
or payment of amount less than the minimum of ` 500 is ineligible for facility of taking loan from the account unless the account is revived. [MOF (DEA) letter No. F.3 (8)-PD/72 dated 16.8.1972]
11. Repayment of loan and interest :- (1) The principal amount of a loan under this Scheme shall be repaid by the subscriber before the expiry of thirty six months from the first day of the month following the month in which then loan is sanctioned. The repayment may be made either in one lump sum or in two or more monthly installments within the prescribed period of thirty six months. The repayment will be credited to the subscriber’s account.
(2) After the principal of the loan is fully repaid, the subscriber shall pay interest thereon in not more than two monthly installments at the rate of two percent per annum of the principal for the period of commencing from the first day of the month following the month in which the loan is drawn up to the last day of the month in which the last installment of the loan is repaid.
Provided that where the loan is not or is repaid, only in part within the prescribed period of thirty six months, interest on the amount of loan outstanding shall be charged at six per cent per annum instead of at two per cent per annum from the first day of the month following the month in which the loan was obtained to the last day of the month in which the loan is finally repaid.
(3) The interest on the amount of loan outstanding under the proviso to sub- paragraph (2) and any portion of interest payable, but not paid, on any loan , the principal amount of which has already been repaid within the prescribed period of thirty six months, may, on becoming due, be debited to the subscriber’s account.
(4) The interest recoverable shall accrue to the Central Government.
[MOF (DEA) Notification No. F.3(8)-PD/84 dated 22.7.1985]
Clarifications :- (1) The penal interest on outstanding loans which are not paid before the expiry of 36 months or paid partly will be debited to the subscriber’s account at the end of each financial year and adjusted in the departmental accounts as per prescribed procedure.
[D.G. Posts letter NO. 1-23/5-SB dated 8.2.1979]
(2) In case of death of subscriber the nominee/legal heir is liable to pay interest on loan availed of by the subscriber but not paid before his death.
[NSC Nagpur letter No. 29-70(1)(b)-CR/68-III dated 1.1.1972]
(7) A subscriber to the Fund cannot nominate a trust as his nominee.
[MOF (DEA) Notification No. GSR 755 (E) dated 19.11.2004]
CLARIFICATIONS
(1) On the death of the subscriber, the balance in the PPF account does not cease to earn interest. The interest is admissible till the end of the month preceding the month in which payment of the deposits is made to the nominee/legal heirs of the deceased subscriber.
[NSC Nagpur letter No. 6398-6417/1(6)-CR/68-IV dated 1.3.1973]
(2) As the PPF accounts are not transferable from one individual to another, the nominee cannot continue the account of a deceased subscriber in his own name. He is free to open an account in his own name if he so wishes even when he has applied for payment from the account of the deceased subscriber.
[NSC Nagpur letter No. 29150-90-1(6)-CR/68-III dated 10.12.1971]
(3) The nominee/heir to the deceased subscriber is liable to pay interest on loans availed of by the subscriber but not paid before his death.
[NSC Nagpur letter No. 29-70/1(6)-CR/68-III dated 1.1.1972]
(4) No fee is to be charged from the subscriber for the registration, cancellation or variation of nomination in the PPF account.
[D.G.Posts letter No. 1-23/75-SB dated 8.2.1979]
(5) When a subscriber dies without any nomination, the scheme now permits payment of balance upto ` One lakh to the legal heirs on the basis of affidavits as explained in proviso to Rule 12 (6) (ii) of the scheme without the production of succession certificate. (6) Nominee does not get the right of ownership. He is only authorized to collect the money on the death of the subscriber and keep it with him as a trustee for the benefit of the persons who are entitled to it under the law of succession. Such payment to nominee does not deprive the legal heirs and holders of succession certificate to receive the amount in the hands of the nominee.
[Supreme Court decision in VIDYA Vs VISHIN case, October, 2000 and D.G.Posts letter No. 105-26/93-SB dated 5.8.1994]
(7) Documents to be submitted with the deceased claim case:- The following documents are required to be submitted with the claim cases of the deceased subscriber:-
(1) Where there is a nomination :-
(a) Application form for withdrawal in Form G by the surviving nominee/nominees. (b) A certificate in regard to the death of the subscriber. (c) A certificate in regard to death of Sh._____________ also the nominee appointed by the subscriber. (d) Pass book of the subscriber.
(2) When there is no nomination and the claim is supported by the legal evidence :-
(a) Application form for withdrawal in Form G by the legal heir(s) (b) A certificate in regard to the death of the subscriber. (c) Succession Certificate/Letter of Administration/ An attested copy of the probated will of the deceased subscriber issued by ______ High Court. (d) Pass book of the subscriber.
(3) When there is no nomination or legal evidence is not produced and the amount at credit in the account is upto ```` one lakh:-
(a) Application form for withdrawal in Form G by the legal heir(s). (b) A certificate in regard to the death of the subscriber. (c) Letter of indemnity in form in Annexure I to Form G on stamped paper. (d) An affidavit in form in Annexure II to Form G on stamped paper. (e) Letter of disclaimer on Affidavit in form in Annexure III to Form G on stamped paper. (f) Pass Book of the subscriber.
[Rule 12 (6) and provisions contained in Form G ]
(8) The nominee or legal heir will have to close the account by taking full amount due in the account in one installment. He will not be allowed to take part payment in more than one installment.
(9) State of PPF account in the event of death of the guardian of the minor or the death of the minor:- The matter has been examined in consultation with the Ministry of Law and the following clarifications are issued.
