4 ways your PPF account can become irregular
Public Provident Fund (PPF) is a popular fixed income investment because of its sovereign guarantee and tax benefits. However, before investing in a PPF account you should know that the rules governing it are stringent and not adhering can lead to the PPF account being termed as irregular.
What happens to an irregular PPF account?
When it is brought to the notice of the post office that a certain rule has not been followed, the PPF account may be closed, contributions may be returned, and interest payments can be stopped.
Also read: How to extend PPF account after it matures; three options to consider
Also read: What is the PPF interest rate for July-September quarter of FY 2023-24
Here is a look at four instances when a PPF account can become irregular.
1. Opening of more than one PPF account
According to PPF rules, you are allowed to open only one account to be opened in one name. Further, if you have a PPF account with a bank then you cannot open one with the post office and vice versa. When opening a PPF account on behalf of your minor child, it must be opened by either the father or the mother; both parents cannot open a separate account for the same minor.
This is what the PPF account opening form declaration portion states: I hereby declare that I am not maintaining any other public provident fund account.
(ii) I hereby declare that I am not maintaining any other public provident fund account, except and account on behalf of a
minor.
(iii) I hereby declare that the details of other public provident fund accounts opened earlier by me are as under
2. Contributing more than Rs 1.5 lakh in a year
The minimum amount that one should contribute to their PPF account is Rs 500 in a financial year, and the maximum allowed is Rs
