How many PPF Account can be Opened by a Person – As per the PPF account opening rules made by government of India, an individual can open his/her PPF account either in the bank or in the post office. But, only one account is allowed for a person. Any individual can not open more than one PPF account on his/her name. But, he/she can open an Joint PPF account with his/her minor child.
In which case can a person hold more than one PPF account?
A person has the option to open a PPF account in the name of his/her child, along with his/her own account. Until the child is a minor, that account will be operated by the parent. But, after the child turns 18, the guardian will not have the right to handle the child’s PPF account.
Know about the best bank for opening PPF account
What if a person opens more than one PPF account?
In case of opening of more than one account by an individual, the government has released Standard Operating Procedures (SOPs) for amalgamation of PPF accounts.
If an investor opens more than one PPF account, then second and further all accounts will be considered irregular, as per PPF eligibility criteria.
In case, both the accounts are in the same operating agencies
In this case, the amalgamation of PPF accounts can be taken up easily by the operating agencies (banks or post office). The operating agency can easily amalgamate both the accounts by following the procedure of account transfer.
In case both the accounts are in the different operating agencies
In such a case, if the total amount of money invested in both the accounts combined are less than or equal to the yearly limit on one account (that is 1.5 lakh rupees), then the investor can amalgamate both the accounts. They has the option to choose in which operating agency, they wants to continue with their PPF account.
Whereas, if the invested money increases the limit of 1.5 lakh rupees, then the amount above 1.5 lakh rupees will be refunded to the investor and then, the process of amalgamation will take place.
*No Post PPF Interest rate will be given on the refunded amount.
What if the investor has any outstanding loan?
If the investor has taken a loan on any of the PPF accounts which has to be merged, then the investor will have to clear all the loans taken on the PPF account. They will have to clear loan along with complete interest within a certain defined period of time.
That means before the amalgamation process starts, all the accounts should be free from any loan or any other such liabilities.
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