Modification in Public Provident Fund (PPF) Scheme Reules, 2016 regarding premature closure of PPF Accounts.
SB ORDER NO. 11/2016
F. No. 32-01/2016-SB
Government of India
Ministry of Communication
Department of Posts
(F.S. Division)
Dak Bhawan, New Delhi
Dated: 04 /11/2016
To
All
Heads of Circles
Addl.
Director General, APS, New Delhi
Subject:-Modification
in Public Provident Fund (PPF) Scheme Rules, 2016 regarding
premature closure
of PPF Account.
Sir/Madam,
The undersigned is directed to say
that vide its O.M No.1/4/2016-NS-II dated 20th June,2016, Govt. of
India, Ministry Of Finance, Department of economic Affairs (Budget Division)
has notified the amendment to the Public Provident Fund Scheme, Rules 1968 as
per the notification dated 18.06.2016 (Copy enclosed).
02. As a result of this amendment, a
subscriber shall be allowed premature closure of his account or the account of
a minor of whom he/she is the guardian, on a written application to the Account
Office, on any one of the following grounds:-
(i)
the amount is required for the
treatment of serious ailments or life threatening disease to the account
holder, spouse or dependent children or parents, on production of supporting
documents from competent authority;
(ii) the amount is required for higher
education of the account holder or the minor account holder, on production of
documents and fee bill in confirmation of admission in a recognized institute
of higher education in India or abroad:
03. However, such premature closure shall be
allowed only after the account has completed five financial years and such
premature closure shall be subject to deduction of such amount which shall be
equivalent to one percent less interest on the interest rates as applicable
from time to time in the table payable on the deposits held in the account from
the date of opening of the account till the date of such premature closure.
This calculation has to be done in accordance with the sample calculation as
shown in the table attached in the notification dated 18.06.2016. Post offices
should follow the following procedure while handling such cases:-
(a)
All requests for premature closure of PPF Account supported by Medical
Certificate from SMO or CMO of a Government Hospital/Dispensary/Health Centre
(in case of Para 02(i) above) and Admission Letter as well as Fee Bill from a
recognized Education Institute in India or abroad (in case of Para 02(ii)
above) along with Passbook, should be sent to Divisional Head by post offices
after verification of PPF Account details with the CBS system on the
application of premature closure. In case account stands at SO, SPM will also
take Account Closure Form (in duplicate) from the subscriber and send one copy
to Divisional Office along with other documents. Second copy of Account Closure
Form should be retained.
(b)
Divisional Head, after satisfying the genuineness of the documents, should
issue sanction, for premature closure of account and original documents along with
Passbook should be sent to Head Postmaster of the HPO concerned.
(c)
Head Postmaster should get the recalculation of interest done from SBCO (till
software is amended) and close the account as Exceptional Closure in Finacle
CBS Application and closure proceed should be credited into office account 0340.
All such payments should be made only by crossed Cheque for the amount
calculated by SBCO (not as shown by Finacle). Closure Amount calculated by SBCO
(after re-calculation of interest) should be accounted in HPO LOT and
Consolidation after manual correction for which entry in HO Error Book should
be made. Copy of error entry should be attached with closure voucher. Sanction
of Divisional Head and supporting documents should also be attached to the
account closure voucher.
(d)
In case account stands at any SO, HPO should first transfer the account from SO
to HPO, close the account as mentioned above. Particulars of payment for which cheque
is issued as mentioned in Para(c) above, should be mentioned on the Account
Closure Form (already received from SO through Divisional Office) by HPO. This
amount should be accounted in HPO itself as it would appear in LOT and
Consolidation of HPO.
(e)
HPO should send cheque to SO duly entered in SO Slip and SO, on receipt of
cheque, will handover the cheque to the depositor after taking receipt on the
Account Closure Form retained by SO as mentioned in para 3(a) above. This Account Closure Form shall be sent to HPO
for onward transfer to SBCO. SBCO will attach this Account Closure Form with
the copy of Account Closure Form received from HPO.
04. This may kindly be circulated to all CBS
and non-CBS Post Offices for
information and necessary guidance for staff and customers. Post Offices on Sanchaya Post will close the account by using the
option Claim Closure and follow the rest of the procedure as mentioned for CBS
Offices.
05. This issues with approval of competent
authority.
(Babu
Lal Barolia)
Assistant Director (SB-II)
Copy
to:-
1.
DDG(FS)/DDG(VIG)/JS&FA/DDG(PAF/DDG(RB)/DDG(Estt.)/DDG(PG &Insps.)/ DDG (PCO)
2.
Director (Tech) O/o Pr. CPMG T..N Circle.
3. Director (FS)/Director (CBS), Dak Bhawan.
4. Director of
Audit (P&T), Delhi.
5.
All Directors/Dy. Directors of Accounts, Postal
6.
Director, Postal Staff College, Ghaziabad.
7.
All Directors, Postal Training Centres.
8.
Director CEPT Mysore for uploading the
SB order on India Post Web Site.
9. Dy.Director (CEPT)
Chennai O/O CPMG T.N.Circle, Chennai for taking up changes in Sanchaya Post with
the vendor and issue necessary guidelines to Post offices working on Sanchaya
Post for handling such cases.
10 ADG(CBS) for taking
up the matter with the FSI Vendor for solution development in Finacle CBS
Application immediately.
11. Dy.Manager FSI
&RSI (CEPT)O/O CPMG T N Circle Chennai.
12.
AD /Inspection/PF/Vigilance
13.
All Accounts Officers ICO(SB)
14.
All recognized unions.
15.
MOF(DEA), NS-II, North Block, New Delhi
16.
Director, NSI, CGO Complex,’A’Wing, 4th Floor, Seminary Hills,
Nagpur-440006
17.
PS to Member (T) 18. PPS to Secretary Posts
