A Public Provident Fund (PPF) Account can be opened by any resident Indian Individuals (Salaried, Business men, Self employed professional or any other category).
If a salaried class person has a General provident Fund account, or an Employees Provident Fund account, he can still have a PPF account there is no restriction.
PPF account by Grand Father/Mother
The grand father/mother cannot open a PPF account on behalf of their minor grand son/daughter except in the case grand father/mother are acting as the guardian of the minor.
NRIs opening PPF account
Non-resident Indians (NRIs) are not eligible to open PPF account. However an NRI can maintain an existing PPF account which was opened when she was a resident Indian.
HUF opening PPF account
Opening of PPF accounts in the name of Hindu Undivided Family is also not permitted. Since May 13, 2005, HUF also can not open a account under the PPF scheme. If the PPF accounts was opened, in the name of HUF, prior to May 13, 2005 subscription may continue to that account till maturity. That account can not be extended any further i.e. it has to be closed after 15 years.
Number of PPF accounts
A person can have only one PPF account in his name, if a person opens 2 PPF accounts anyhow and at some point it is detected that a person has 2 accounts (can easily be done by PAN) one of them would be closed and only the principal amount would be returned not the interest. Thus it would serve no purpose to have 2 PPF accounts.
PPF account for a minor
One exception to the stated one account per person rule is having an account for the minor where a person who is already having a PPF account can open another account on behalf of a minor but in that case combined limit for both the account would be 1.5 lakhs (Current limit for the PPF) anything deposited over and above that amount won't get any interest.
In case of family of four- couple and their 2 kids, Kid-1 and Kid-2 there are following scenarios for the number of PPF accounts an individual can have.
- Father can open PPF account for self, kid-1 and kid-2.
- Mother can open PPF account for self, kid-1 and kid-2.
- Father can open PPF account for self and one kid (kid-1 or kid-2).
- Mother can open PPF account for self and one kid (kid-1 or kid-2).
Points to note -
- Joint PPF accounts are not permitted.
- An individual can't have more than one account on his/her name.
- No age is prescribed for opening a PPF account.
- Parents and Guardians can open PPF account for minors.
- opening of PPF accounts in the name of Hindu Undivided Family is not permitted.
That's all for this topic Public Provident Fund (PPF) account opening eligibility. If you have any doubt or any suggestions to make please drop a comment. Thanks!
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