SB Order No. 11/2016 : Modification In Public Provident Fund (PPF) Scheme Rules, 2016 Regarding Premature Closure Of PPF Account.
F. No. 32-01/2016-SB
Government of India
Ministry of Communication
Department of Posts
(F.S. Division)
Dak Bhawan, New Delhi
Dated: 04 /11/2016
To
All Heads of Circles
Addl. Director General, APS, New Delhi
Subject:-
Modification in Public Provident Fund (PPF) Scheme Rules, 2016
regarding premature closure of
PPF Account.
Sir/Madam,
The
undersigned is directed to say that vide its O.M No.1/4/2016-NS-II dated
20thJune,2016, Govt. of India, Ministry Of Finance, Department of economic
Affairs (Budget Division) has notified the amendment to the Public Provident
Fund Scheme, Rules 1968 as per the notification dated 18.06.2016 (Copy
enclosed).
02. As a result
of this amendment, a subscriber shall be allowed premature closure of his
account or the account of a minor of whom he/she is the guardian, on a written
application to the Account Office, on any one of the following grounds:-
(i) the amount
is required for the treatment of serious ailments or life threatening disease
to the account holder, spouse or dependent children or parents, on production
of supporting documents from competent authority;
(ii) the amount
is required for higher education of the account holder or the minor account
holder, on production of documents and fee bill in confirmation of admission in
a recognized institute of higher education in India or abroad:
03. However, such
premature closure shall be allowed only after the account has completed five
financial years and such premature closure shall be subject to deduction of
such amount which shall be equivalent to one percent less interest on the
interest rates as applicable from time to time in the table payable on the
deposits held in the account from the date of opening of the account till the
date of such premature closure. This calculation has to be done in accordance
with the sample calculation as shown in the table attached in the notification
dated 18.06.2016. Post offices should follow the following procedure while
handling such cases:-
(a) All requests for premature closure of PPF Account
supported by Medical Certificate from SMO or CMO of a Government
Hospital/Dispensary/Health Centre (in case of Para 02(i) above) and Admission
Letter as well as Fee Bill from a recognized Education Institute in India or
abroad (in case of Para 02(ii) above) along with Passbook, should be sent to
Divisional Head by post offices after verification of PPF Account details with
the CBS system on the application of premature closure. In case account stands
at SO, SPM will also take Account Closure Form (in duplicate) from the
subscriber and send one copy to Divisional Office along with other documents.
Second copy of Account Closure Form should be retained.
(b) Divisional Head, after satisfying the genuineness of the
documents, should issue sanction, for premature closure of account and original
documents along with Passbook should be sent to Head Postmaster of the HPO
concerned.
(c) Head Postmaster should get the recalculation of interest
done from SBCO (till software is amended) and close the account as Exceptional
Closure in Finacle CBS Application and closure proceed should be credited into
office account 0340. All such payments should be made only by crossed Cheque
for the amount calculated by SBCO (not as shown by Finacle). Closure Amount
calculated by SBCO (after re-calculation of interest) should be accounted in
HPO LOT and Consolidation after manual correction for which entry in HO Error
Book should be made. Copy of error entry should be attached with closure
voucher. Sanction of Divisional Head and supporting documents should also be
attached to the account closure voucher.
(d) In case account stands at any SO, HPO should first
transfer the account from SO to HPO, close the account as mentioned above.
Particulars of payment for which cheque is issued as mentioned in Para(c)
above, should be mentioned on the Account Closure Form (already received from
SO through Divisional Office) by HPO. This amount should be accounted in HPO
itself as it would appear in LOT and Consolidation of HPO.
(e) HPO should send cheque to SO duly entered in SO Slip and
SO, on receipt of cheque, will handover the cheque to the depositor after
taking receipt on the Account Closure Form retained by SO as mentioned in para
3(a) above. This Account Closure Form
shall be sent to HPO for onward transfer to SBCO. SBCO will attach this Account
Closure Form with the copy of Account Closure Form received from HPO.
04. This may kindly
be circulated to all CBS and non-CBS
Post Offices for information and necessary guidance for staff and customers.
Post Offices on Sanchaya Post will close the account by using the option Claim
Closure and follow the rest of the procedure as mentioned for CBS Offices.
05. This issues
with approval of competent authority.
(Babu Lal Barolia)
Assistant Director
(SB-II)
Copy to:-
All