Chairman and Managing Director/Managing Director
Accounts Department, Head Office
Bank of India and its Associates
Bank / Bank of Baroda / Bank of India / Bank of Maharashtra /
Bank / Central Bank of India / Corporation Bank / Dena Bank / Indian Bank /
Overseas Bank / Punjab National Bank / Syndicate Bank /UCO Bank /
Bank of India / United Bank of India / Vijaya Bank / ICICI Bank Ltd
Provident Fund Scheme, 1968 (PPF) - Settlement of PPF Claims of Subscribers, who
of India (GOI) has been receiving several references seeking guidance on the settlement
of PPF claims in respect of subscribers, who go missing.
Government of India has, vide their Office Memorandum No. 7/7/2005-NS.II
dated August 6, 2007, since advised that the PPF accounts of subscribers who
go missing will be settled as per the provisions contained in Section 107/108
of the Indian Evidence Act, 1872. A copy of the said Memorandum dated August 6,
2007 indicating details of procedure to be followed in this regard is enclosed
herewith for information and guidance.
We advise you to bring the contents of this circular to the notice of designated
branches of your bank for information and compliance.
Please acknowledge receipt.
Assistant General Manager
Department of Economic
Delhi, the 6th August 2007
Settlement of PPF Claims of Subscribers, who go missing
undersigned is directed to say that several references were being received by
this Ministry, seeking guidance on the settlement of PPF claims of subscribers,
who go missing, as there is no specific provision in the PPF Act/Scheme to deal
with such cases.
The matter has been examined in consultation with Ministry of Law & Justice
(Department of Legal Affairs). In the absence of any specific provision under
the PPF Act/Scheme regarding settlement of accounts of missing subscribers, such
accounts are advised to be settled as per the provisions of Section 107/108 of
the Indian Evidence Act, 1872.
Section 107 of the Indian Evidence Act, 1872 deals with presumption of continuance
of life whereas Section 108 deals with presumption of death. Section 108 of the
Indian Evidence Act read as under:-
'Provided that when
the question is whether a man is alive or dead and it is proved that he
not been heard for seven years of those who would naturally have heard of him
if he is
alive, the burden of providing that he is alive, is shifted to the
person who affirm it.'
As per the provisions of Section 108 of the Indian Evidence Act, presumption of
death can be raised only after a lapse of seven years from the date of his/her
being reported missing. As such, the nominee of a missing subscriber has to raise
an express presumption of death of the subscriber under Section 107/108 of the
Indian Evidence Act before a competent court. If the court presumes that he/she
is dead, then, the nominee will be entitled for settlement of outstanding amount
of the PPF Account of the missing subscriber in his/her favour.
Department of Posts and RBI may issue guidelines for settlement of claims of missing
to the Govt. of India
Deptt. of Posts [DDG (FS)], F.S. Division, Dak Bhavan, Sansad Marg, New
2. Reserve Bank
of India, [Imtiaz Ahmad, (Assistant General Manager)], Deptt. of Govt. &
Bank Accounts, Central Office, Opp. Mumbai Central Railway Station, Byculla, Mumbai-400008.