PPF Account Merger Is Not Allowed In This Condition: Check New Rule

According to the Public Provident Fund or PPF Rule 2019, an account holder cannot have two accounts, thus if two accounts are established on or after December 12, 2019 under the PPF Rules 2019, the account will be terminated immediately without payment of interest, and the conditions of the PPF Rules, 2019 should be rigorously followed. As a result, for merging two accounts, an account holder should submit a photocopy of the PPF passbook with the merger application at the concerned post office or bank.

To rectify any misunderstanding over the merging of such PPF accounts, the Department of Economic Affairs under the supervision of the Ministry of Finance has released an official memorandum (OM) on 23rd February 2022. The OM was published in response to Dr. Anupam Mishra's request to merge PPF accounts.

In the OM the Department of Economic Affairs at Ministry of Finance said "In partial modification of this Department letter dated 14.02.2022, the undersigned is directed to refer to the case at serial number No.7 of Dr. Anupam Mishra regarding merger of the account No.7003137726 opened on23.03.2021 in Indian Bank, KGM College, Lucknow Branch. The said account was opened under the PPF Rules, 2019 and therefore, is not eligible for regularization. Accordingly, the account may immediately be closed without any interest payment and the provisions of PPF Rules, 2019 may strictly be complied."

"All the operating agencies are further advised not to send any proposal for consideration of merger of PPF accounts opened under the PPF rules, 2019 i.e. on or after 12.12.2019. This issues with the approval of competent authority," the OM further noted.

In another circular released on 02.02.2022, the Department of Economic Affairs under the supervision of the Ministry of Finance has made further clarification that "In case any one of the PPF accounts or all the PPF accounts is/are proposed to be merged or amalgamated is / are opened on or after 12.12.2019, such account(s) shall be closed without any interest payment and no proposal should be sent to the Postal Directorate for amalgamation of such PPF Accounts."

"Department of Economic Affairs (Budget Division), Ministry of Finance in its OM No. 2/2/2020-NS dated 23.02.2022, has advised not to send any proposal for consideration of merger i.e. amalgamation of PPF Accounts opened under the PPF Rules 2019," the memorandum further added.