Two or more PPF accounts opened after this date cannot be merged; check details

There is important news for you if you are also investing in PPF account. A rule has been issued by the government for investors in PPF, which will have a direct impact on investors. Two or more PPF accounts opened by a single person on or after December 12, 2019 cannot be merged, the finance ministry said. The Ministry of Finance has also issued Office Memorandum (OM) in this regard. The Office Memorandum states that entities operating PPF accounts should not request a merger of PPF accounts opened on or after December 12. This is due to the PPF's 2019 rules. 

Following the issuance of the Office Memorandum, the Post Office issued a circular stating that only one of the two or more PF accounts opened on or after 12 December 2019 will remain active. The rest of the accounts will be closed. No interest will be paid on any closed account.

For example, if you opened one PPF account in January 2014 and another opened in February 2020, in this case your February 2020 PPF account will be closed. There will be no interest on this account. Also, if you opened the first account in January 2014 and the second account in February 2017, the two will be merged at your request.