I have read your replies to many questions and very much pleased to note that you are doing great social service.
I am also asking you about a strange problem of my PPF A/C.
I have a PPF A/C. in State Bank of India. 15 years are over and is extended for further 5 years with Subscription Option. One year is over.
Recently I visited SBI branch to change name of My minor daughter in her PPF Account as Name was officially changed( By publication in Gazette.)
While making entry of new name, Bank computer operator by mistake made entry of daughter’s name in PPF A/c. of as under:-
Account Name :- Daughter’s Name
Customer Name:-My name.
After entering daughter’s name he realised the mistake but the daughter’s name could not be deleted.
Now Manger of the Bank said me that I should close the present PPF A/c. and open a new PPF account in the same Branch. Manager also assures me that New PPF A/c. will have all the rights of present PPF A/C.
As per PPF Rules we have doubts that the benefits of present PPF A/c. may not be available in new PPF A/c.
I seek your kind advise. Please advise whether
- All the benefits of present PPF A/c. will be available in new PPF A/C?
i.e.1. Will get interest on entire amount of more than Rs.7.00.000/- ?
- Can I deposit Rs. 1.50.000/- every year ?
- Can I close the NEW PPF A/c. after extended term of 5 years of present PPFA/c. is over or it will have to continue for 15 years ?.
- If new PPF A/c. is not opened, and if present PPF A/C. is continued (without removing my daughter’s Name, will there be any complications ? Can I operate the
Present PPF A/C. without any problem ?
This is a very strange problem and only you can guide us.
I therefore, earnestly request you to consider all the aspects and guide us in detail.
Seeking your valuable advise.
Apurva-They did the mistake and now they want to rectify that with the cost of your investment. Never heed their request. Instead, I suggest you to let them do the correction (by whatever means), or let them give in written reply to your application of name change that, you have to close the account. Coming back to your queries,
- Yes. There is no change in the product feature. But if you open the new account, then it will be for 15 years. However, in your case, it is already completed 15 years. So you can extended that for each 5 years of block. This means that you lose the liquidity of withdrawing it after every 5 years. Also, the important point to note that, you can’t deposit the accumulated Rs.7 lakh in one go, as the current yearly limit if only for Rs.1.5 lakh. Hence, you can’t invest the whole Rs.7 lakh at one go. This is considered as the new account. So the limit per year of investment will be only Rs.1.5 lakh.
- Yes, as this is the new account, you are eligible to invest of Rs.1.5 lakh for the rest of the 15 years.
- I already replied. This is the new account. Hence, you have to wait for 15 years.
- In my view, there will not be any problem. However, once you daughter’s status change from minor to major, then you have to update the same with bank. After that you are no longer be treated as guardian. So, first understand whether the maturity will be before your kid attains the age of 18 years or what. If it is before 18 years of age, then you can operate it regularly. However, if it is after 18 years of age, then it will be your kid’s PPF account.