May 25, 2005
Jyeshtha 4, 1927 (S)
The General Manager Government Accounts Department
State Bank of India and Associate Banks
Allahabad Bank / Bank of Baroda / Bank of India /
Bank of Maharashtra / Canara Bank / Central Bank of India
Corporation Bank / Dena Bank / Indian Bank /
Indian Overseas Bank /Punjab National Bank / Syndicate
UCO Bank / Union Bank of India / United Bank of India
Public Provident Fund Scheme, 1968 - Clarifications
Please refer to our Circular
No.CO.DT.15.02.001/H-9593-9615/2004-05 dated May 14, 2005 forwarding therewith
Government of India Notification dated May 13, 2005 issued by Ministry of Finance,
amending the provisions of the PPF Scheme, 1968 with effect from May 13, 2005.
2. In this regard, Government of India, Ministry
of Finance vide letter F.No.2/8/2005-NS-II dated May 20, 2005 have, inter
alia, issued the following clarifications :
i) Sequel to amendments to various Small
Savings Schemes to restrict the scope of investments only to individuals,
the accounts, if any, opened by juristic persons (HUFs, Trusts, Provident
Funds, etc.) i.e. persons other than individuals (through single or joint
accounts or deposits by guardians on behalf of minors and persons of unsound
mind as per rules) on or after May 13, 2005, under any of the small savings
scheme including Public Provident Fund Scheme, 1968, shall be treated as
void ab initio and immediate action should be taken to close such
accounts and to refund the deposits without any interest to the depositors.
ii) It may, however, be noted that the
above amendments shall not be applicable to the existing accounts
opened in accordance with the rules in operation prior to the amendments
dated May 13, 2005. These shall continue till maturity and deposits/withdrawals
in/from these accounts shall be allowed to be made in accordance with the
said rules. However, any extension of existing accounts shall be subject
to the amendments dated May 13, 2005.
3. In view of the above, you may please issue
suitable instructions to all your designated branches / offices operating the
PPF Scheme, 1968 and ensure strict compliance with the same.
4. Please acknowledge receipt.
Deputy General Manager