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PPF Withdrawal / a/c close

A.K.Agrawal (Investments & Finance) (132 Points)

05 May 2011

AFTER 20 YRS. OF DEPOSITING FUND IN PPF, WITHOUT PERSONAL PRESENCE OF THE PPF A/C HOLDER, CAN FUND BE WITHDRAWN BY A MASSENGER FATHER, AUTHORISED & DULY SIGNED SO, BY THE A/C HOLDER SON, ON THE WITHDRAWAL FORM , WHICH HAS SUCH PROVISION PRINTED ON IT.

1. TO WITHDRAW FUND FROM OR TO CLOSE A PPF A/C, PERSONAL PRESENCE OF THE A/C HOLDER ESSENTIAL ? IS THERE ANY SUCH RULE ?

2. AFTER 20 YRS. & WITHOUT EXTENDING ITS TERM FOR FURTHER 5 YEARS, CAN ANY AMOUNT BE WITHDRAWAN WITHOUT ANY LIMIT SAY 99% ? 60% IS THE LIMIT ONLY WHEN IT IS EXTENDED FOR FURTHER 5 YRS.

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5 Replies

KIYOSH (TAX CONSULTANT) (332 Points)
Replied 05 May 2011

ON COMPLETION OF 20YEAR YOUR ACCOUNT GETS MATURED, IF U R NOT EXTENDING IT THAN YOU HAVE TO SUBMIT FORM FOR CLOSING OF ACCOUNT.

I DON'T THINK THAT THERE IS NECESSARY TO BE PRESENT AT THE TIME OF SUBMITTING APPLICATION FORM FOR CLOSER OF PPF ACCOUNT.

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 05 May 2011

PPF is not a bank a/c but a fund saved for future, in case of non presence, the a/c holder have to submit a photocopy of his own bank a/c and put request to transfer the funds there directly, or issue a banker cheque in favor of himself with bank details provided.

usually the bank does not allow cash withdrawl by any person else except a/c holder from ppf, as it is secured deposit, and can not be operated alike bank a/c.

A.K.Agrawal (Investments & Finance) (132 Points)
Replied 06 May 2011

MY SON'S PPF A/C IS MATURED . I SUBMITTED A/C CLOSURE FORM DULY SIGNED BY MY SON. I FATHER AS A MESSANGER TO COLLECT THE A/C PAYEE CH. IN MY SON'S NAME. SR.POST MASTER DENYING PAYMENT TILL PERSONAL PRESENCE OF THE A/C HOLDER WHO IS A NRI & AWAY. I DO NOT FIND ANY RULING FOR A/C HOLDER PERSONAL PRESENCE FOR WITHDRAWAL OR A/C CLOSURE. IS THERE ANY SUCH RULING. I MAY BE AGREE FOR 99%OF WITHDRAWAL & NOT A/C CLOSING, IF REQD. SUCH COND. FOR A/C CLOSING. EVEN THEN HE IS NOT READY. CHIEF POST MASTER GEN. OFFICE LCK. ADVISES TO CONTACT SR.SUPTD. OF POST WHO IN TURN SAYS - SPM WILL TAKE DECISION NOT HE. WHAT IS THIS NON SENSE? I LODGED COMPLAINT ON-LINE ON DIRECTORATE PUBLIC GRIEVANCE, INDIA POST ON 3-5-11, BUT OF NO REPLY TILL NOW. I AM IN A TIGHT CORNER. I FEAR MY SON'S PROJECT WILL FAIL. ANY REMEADY PL.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 06 May 2011

send the following to your son :-

PPF passbook copy / bank a/c passbook copy ( a/c no /address details/ bank name, address must appear) and your son will request postmaster to close the a/c and send the proceeds to his bank , he will send such doducments direct by post ( not courier) under acknowledgement, and copy to you for follow up.

you have to get help of any post office deposit agent to verify your identity as father of PPF a/c holder, this will help you to produce yourself in front of postmaster.

as PPF a/c is personal deposit for future of life, no govt treasury handovers it to any representative, but the procedure does not authorize any person to withdraw and ask the postmaster to direct debit to the a/c of ppf holder, so here the postmaster will not raise any query. however if the post office is not a controller post office then it may take months to close, coz they will send the documents to head post office for formalities.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 06 May 2011

alongwith his application to close the a/c, your son has to submit his passport details stamp of immigration and any other valid document which can prove that he is not in india and can not be present in person for such closure.