Fri Sep 20 06:58:45 UTC 2024: ## Government Cracks Down on Multiple PPF Accounts: What You Need to Know

**New Delhi, [Date]:** The Public Provident Fund (PPF), a popular savings scheme offering tax-free interest and maturity proceeds, is facing scrutiny as the government tightens rules around multiple account holdings.

**Multiple Accounts Now Classified as Irregular:** While individuals are allowed only one PPF account per PAN card, some have exploited loopholes by opening multiple accounts using different banks or combining accounts from banks and post offices. These additional accounts, except for one chosen as the primary account, are now considered irregular.

**Merger and Interest Implications:** The balance in the second PPF account will be merged with the primary account, provided the total investment remains within the yearly ceiling. Excess funds from the second account will be refunded without interest. All other additional accounts, beyond the primary and second, will cease to earn interest from the date they were opened.

**Impact on Minors’ Accounts:** If multiple PPF accounts are opened for the same minor child, all except one will be considered irregular. These accounts will earn interest at the Post Office Savings Bank rate, not the usual PPF rate.

**Stricter Rules for NRIs:** Non-Resident Indians (NRIs) cannot open new PPF accounts. While existing accounts can be continued until maturity, they cannot be extended after the 15-year period. Any NRI account extended beyond this period will be deemed irregular and will cease to earn interest after September 30, 2024.

**Advice for Account Holders:** Individuals with multiple PPF accounts should review their situation and choose a primary account. Any excess funds will be refunded, and additional accounts beyond the primary and second will stop earning interest. For NRIs, ensuring their accounts are closed on time is crucial to avoid losing interest.

**The Bottom Line:** The government is taking a firm stance on multiple PPF account holdings. Account holders need to be aware of the new rules and take necessary steps to avoid any negative implications on their investment.

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