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RBI's clarificationon payment of interest of PPF (HUF) accounts under public provident fund (PPF) scheme, 1968

Others 3051 views 2 replies

anthony

Finance

7918 Points Joined August 2007

RBI's CLARIFICATION ON PAYMENT OF INTEREST IN RESPECT OF PPF (HUF) ACCOUNTS UNDER PUBLIC PROVIDENT FUND (PPF) SCHEME, 1968

CIRCULAR NO. DGBA. CDD. NO. H- 8842/15-02-001/2010-11, DATED 17-6-2011

Please refer to our Circular RBI/2010-11/344 DGBA.CDD.No.H-4311/15.02.001/ 2010-11, dated December 27, 2010, forwarding therewith a copy of Government of India Notification G.S.R.956 (E), dated December 7, 2010, on the above subject.

2. In this regard, Government of India has, vide their letter F.No.7/4/2008-NS.II, dated June 1, 2011(copy enclosed), decided that interest at PPF rates would be paid on those PPF (HUF) accounts, which had attained the maturity after May 13, 2005 but closed by the subscribers before December 7, 2010, subject to the conditions that the accounts had not been extended thereafter and the deposits were retained in such accounts without further subscriptttions.

3. You may bring the contents of this circular to all your branches dealing with this scheme.

Replies (2)

Vikas Gupta

CHARTERED ACCOUNTANT

16295 Points Joined January 2010

Thanks 4 sharing

jinal mehta

Asso accounts manager

212 Points Joined June 2012

Respected Sir,

Earlier HUF was eligible to open PPF account, i have one query for PPF of HUF

KARTA of HUF died in feb 2007 and as we were paying ppf in the month of march, as because of death of KARTA we have not paid ppf in the month of March i.e.( FY 2006-07) and made application for refund as KARTA was no more but due to certain reasons we could not get the amount.

Now in the year of 2011, the rule came out stating that now HUF cannot open account in their name.But now bank manager is telling due to certain RBI norms int upto 2006 is only payable not upto 2011, there is a int loss of Rs. 200000 which is big amount for me.

So please help me out whether such rules exists or not. In the bank system entire amount is shown not till 2006. Please help me out which link or reference that can be given to Bank manager and he agrees for the same.

Thank you in advance.