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Thursday, December 23, 2010

SB ORDER NO. 23 /2010

SB ORDER NO. 23 /2010
Government of India
Ministry of Communications & IT
Department of Posts
Dak Bhawan, Sansad Marg,
New Delhi-110001.
Date: 13.12.2010
All Heads of Circles/Regions
Addl. Director General, APS, New Delhi.

Subject:- Closing of PPF(HUF) accounts on maturity- an amendment to Paragraph (9) of PPF Scheme 1968.

Sir / Madam,
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 956 (E) dated 7.12.2010 ( F.No. 7/4/2010- NS-II dated 7.12.2010) has amended Paragraph 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 31st March of the 16th 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 31st 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 overpayment of interest if made shall be the responsibility of the counter PA and the Supervisor.

4.         This issues with the approval of DDG(FS).
Yours faithfully,
(Kawal Jit Singh)
Assistant Director (SB)

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