Public Provident Fund Accounts– requests for premature closure
Recently, there has been a considerable increase in the number of cases being forwarded by Circles to the Directorate for taking up with the Ministry of Finance, relating to premature closure of PPF accounts. The Ministry of Finance have noticed that very few of them qualify for pre-mature closure by relaxation of relevant rules and they have informed the Directorate that generally, cases on ground of migration to abroad, marriage, purchasing of house/vehicle, ceremonial occasions, repayment of loan, education, retiring/suspension from job, etc. do not merit relaxation of rules for premature closure of PPF account. Only those cases of extreme compassionate ground such as medical support in life-threatening diseases/ cases, death cases, etc. deserve consideration for granting permission for premature closure.
It is, therefore, requested that Circles/Regions may forward with the approval of their Principal/Chief PMG/PMG/DPS only these cases of premature closure of PPF accounts for consideration of Directorate/Ministry of Finance, where extreme compassionate ground is involved. In other non-deserving cases, the attention of depositors can be brought to the facility of loans and withdrawals available under Rule 9 and 10 of the PPF Scheme. These instructions may be circulated immediately to all concerned for information, guidance and necessary action.
[D.G.Posts letter NO. 32-1/2003-SB dated 22.9.2003]
(Compiled by Taxguru Team)