PPF clarifies minor's account rule after social media confusion

Following the `misinterpretations and misunderstandings' over the Public Provident Fund (PPF) rules on social media, the central government has clarified the recent changes brought to the PPF account opening guidelines. 

The government clarification comes in the wake of a small savings circular that sparked a lot of confusion. The authorities highlighted that the Public Provident Fund (PPF) accounts opened for minors without a guardian are considered irregular and do not comply with the set guidelines.

The government said the new rules targeted irregular accounts following media reports that some individuals had opened multiple accounts in the names of the minors to circumvent the rule that only one account can be opened per person.

The main goal of the circular, the authorities noted, was to regularise similar accounts and ensure that people complied with the regulations. They warned that those attempting to bypass the Public Provident Fund guidelines would face complications.

Minor with a guardian

Public Provident Fund accounts can still be opened for minors with a guardian. This ensures that the accounts stick to the guidelines and safeguards the interests of young account holders.

The updated guidelines address six categories of irregular Public Provident Fund accounts: NSS accounts, PPF accounts opened in the name of a minor, multiple PPF accounts, PPF account extensions by NRIs, and Sukanya Samriddhi Accounts (SSA) opened by grandparents who are not legal guardians.

(By arrangement with livemint.com)