SB ORDER NO. 23/2010

CLOSING OF PPF (HUF) ACCOUNTS ON MATURITY –AN AMENDMENT TO PARAGRAPH (9) OF PPF SCHEME 1968. D.G. Posts No. 32-01/2010-SB dated 13.12.2010  ...

CLOSING OF PPF (HUF) ACCOUNTS ON MATURITY –AN AMENDMENT TO PARAGRAPH (9) OF PPF SCHEME 1968.

D.G. Posts No. 32-01/2010-SB dated 13.12.2010 (S.B. Order No. 23/2010)

            The undersigned is directed to say that as per GSR 286(E) dated 13.5.2005 circulated vide SB Order 10/2004 dated 23.6.2005, only individuals can open PPF account from 13.5.2005. A further clarification was issued vide then DDG (FS) D.O. letter No. 113-10/2004-SB dated 5.9.2005 and again reiterated vide SB Order No.20/2005 dated 14.11.2005 vide which it was conveyed that existing PPF accounts opened in the name of HUF would continue till maturity and enjoy all facilities available under earlier rules but their maturity period cannot be extended further after 13.5.2005 .Therefore the present position of PPF (HUF) accounts is :

●          PPF accounts opened in the name of HUF prior to 13.5.2005 cannot be further extended after maturity and no further deposit can be accepted in such accounts after maturity.

2.         Now, MOF(DEA) vide GSR(E) dated 7.12.2010 (F. No. 7/4/2010-NS-II dated 7.12.2010) has amendedParagraph 9 of PPF Scheme rules by adding a provision below Sub-paragraph (3) of this Paragraph according to which from 7.12.2010, the position of PPF accounts opened in the name of HUF prior to 13.5.2005 will be as follows:

●          PPF accounts opened in the name of HUF prior to 13.5.2005 will be closed on maturity i.e. 31^st March of the 16^th Financial Year from the year in which account was opened. No further interest will be admissible.

●          PPF accounts opened in the name of HUF prior to 13.5.2005 but have already been matured but not yet closed, shall be closed on 31^st March, 2011 after which no further interest shall be admissible.

3.         Copy of amendment issued by MOF (DEA) is enclosed. It is requested that this amendment should be circulated to all post office handling PPF scheme and above matter given in bullet points should be displayed on the Notice Boards of these Post Offices. It is also requested that strict instructions should be issued to all postal staff at the counters to see the passbook at the time of deposit of subscription in PPF accounts and not to accept deposits in such accounts. Any over payment of interest if made shall be the responsibility of the Counter PA and the Supervisor.

4.         This issues with the approval of DDG (FS).

                                                                                                          Sd/-

(Kawal Jit Singh)

Assistant Director (SB)

THE GAZETTE OF INDIA EXTRAORDINARY

Ministry of Finance

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 7^th December, 2010

G.S.R. 956(E).- In exercise of the powers conferred by sub-section(4) of section 3 pf the Public Provident Fund Act,1968(23of 1968), the Central Government hereby makes the following Scheme further to amend the Public Provident Fund Scheme,1968, namely:

1.         (1) This scheme may be called the Public Provident Fund (Amendment)   Scheme, 2010.

            (2) It shall come into force on the date of its publication in the Offcial Gazette.

2.         In the Public Provident Fund Scheme, 1968 in paragraph 9, in sub-paragraph     (3), after the proviso, the following proviso shall be inserted, namely:-

            "Provided further that an account opened on behalf of a Hindu Undivided Family prior to the 13^th 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 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 31^st day of March, 2011 and the entire amount standing at the credit of the subscriber shall be refunded , after making adjustment, if any , in respect of any interest due from the subscriber on loans taken by him."

{F.No.F.7/4/2008-NS.II

   M.A. KHAN, Under Secy.