Six categories have been identified and related guidelines have been issued.
The government has advised the public to stay informed and refer to official sources to prevent any confusion regarding the PPF scheme and its regulations.
In response to widespread misinterpretations on social media, government officials have clarified the recent changes to Public Provident Fund (PPF) rules. The clarification aims to address confusion arising from a recent small savings circular, which has particularly stirred concerns on platforms like Twitter.
The government has advised the public to stay informed and refer to official sources to prevent any confusion regarding the PPF scheme and its regulations, CNBC-TV18 reported.
The report added that officials emphasise PPF accounts opened for minors without a guardian are deemed irregular and do not meet the established guidelines.
The new rules specifically address irregular accounts that deviate from the scheme’s guidelines. Reports suggest that some individuals have opened multiple accounts in the name of minors to bypass the one-account-per-person limit.
The primary goal of the small savings circular is to regularise these accounts and ensure they comply with regulations. Authorities caution that individuals who attempt to circumvent PPF guidelines may face complications if their accounts are flagged.
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, Sukanya Samriddhi Accounts opened by grandparents who are not legal guardians and extensions of PPF accounts by NRIs.
It is important to note that PPF accounts can still be opened for minors, provided they are done so with a guardian. This ensures that the accounts adhere to the necessary regulations and safeguards intended to protect the interests of young account holders.
