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People like to speculate closely in Public Provident Fund. The largest cause for that is that it supplies protected funding choices in addition to higher returns. Due to raised returns, many occasions folks open multiple PPF account. But in accordance with the foundations, nobody can open multiple PPF. But, in accordance with particular guidelines, the federal government provides the power to merge each the accounts in some circumstances.
The Finance Ministry has issued a round stating that each the accounts may be merged solely in particular circumstances and the federal government doesn’t permit the merger of some accounts. In such a state of affairs, what’s going to occur to the second account, so allow us to reply you this question-
Interest is not going to be accessible in these accounts
According to the foundations of the Ministry of Finance, no individual can open two PPF accounts. If an individual has opened two PPF accounts after December 12, 2019, then he should shut that second account. Along with this, it is not going to get any sort of curiosity (PPF Rate of Interest) on this account. At the identical time, the federal government has not but clarified the curiosity place relating to the accounts opened earlier than this.
Here are the foundations relating to PPF account
Let us inform you that in accordance with the foundations made for PPF account, you possibly can open just one account. Sometimes folks don’t have the precise data. Because of this, he will get to open one other PPF account. But, this second account is invalid. In such a state of affairs an account needs to be closed. But, in particular circumstances, the federal government provides permission to merge each the accounts. In such a state of affairs, you possibly can remove one account and merge it with one other. In the occasion of a merger, all the cash in a single account will probably be transferred to the opposite account. Let us inform you that the return of seven.1 p.c is obtainable in PPF accounts.
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