Nov 212015

 Close PPF of Deceased Accounts

Public Provident Fund is an  account which can be opened by people residing in India. Indian Individuals and the individuals on behalf of minor can get the benefit of this account. An individual is supposed to maintain only one PPF, but there is the freedom to open one more account on the behalf of a minor. A mother or father can ope this account on the behalf of their minor daughter and son. At present, the interest rate of this fund is 8.8 percent. This account attains the maturity after the completion of 15 years.

Close PPF of Deceased Accounts

Closing of PPF:

For such accounts, premature withdrawal is not yet allowed. But the nominee or the legal heir of PPF has been granted the authority to close the account after the death of the costumer.  To close the PPF account for deceased costumer, the nominee will be asked to submit all the essential documents. All of them should be guided by the Ministry of finance. The legal heir will be asked to apply for closure. After processing of application, the existing bank verifies all the original  documents submitted. After the maturity of this account , it can be used as the Tax free Pension Account. 

Documents Required

The documents required to close account of deceased are as follows, they all must be submitted to claim the amount

The first document required is an original and a photocopy of Death Certificate of the deceased person, it must be verified from the bank. Another thing required is the letter of undertaking. This letter should be from all the claimants, apart from all those who had signed the disclaimer letter. That letter of disclaimer should be in the claim format. Only a well known or respectble person can do the declaration in the claim format. He/she should have a very good knowledge about the deceased person and his family. But he should not be connected to them, only then it will be acceptable at the bank.

Indemnity can only be signed by person whose name has been clearly mentioned in the letter of disclaimer. There must me the sureties in all  applicable cases. When the letter of disclaimer has been signed by the legal heir in favour for another legal heir, he has the authority to take the stand for surety purpose.

But to claim the amount, the candidate must be independently good enough. Wherever required, affiDavid must be attached. If the balances are paid through the  Banker’s cheque, then stamped receipt are essential. These balances can also paid through credit into an individual account of claimant. The account must be maintained with any Indian bank. But the bank transfer and the interbank transfer must only be done through RTGS/NEFT to the account which is being maintained with any other Bank in India. 

If no nominee?

In case, when the deceased account holder had not mentioned any nominees of his PPF account, then the whom accumulated account is sent to one of the closest or nearest kin of that person. But the claimant have to go through the necessary verification, only then officials give approval and validction for the money to be transferred.

If the nominee or the legit hire of the fund amount wants to continue the PPF deceased account, in such case, there is no chance for that account to be operated further. It can neither be extended, nor be transferred to any other person. The account will be closed and later if the nominee is willing to reinvest the amount accumulated in PPF, then he will be asked to open a new account.

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