How to claim PPF after subscriber's death

In the event of the death of a Public Provident Fund (PPF) subscriber, any money left in their PPF account is passed on to the nominee(s) or the legal heir(s). The paperwork and documentation for the claim vary based on whether a nomination has been registered by the PPF subscriber or not. Here’s how to go about filing a claim. 

Form 

Nominees or the legal heir of the deceased PPF subscriber are required to submit a duly filled Form G to the bank or post office where the the PPF account was held. 

Nomination registered 

If the PPF subscriber had registered a valid nomination, the nominee will be able to claim the proceeds from the account by simply filing the Form G, along with proof of death of the subscriber (death certificate). 

No nomination 

If there is no nomination in force, the claim can be made by the legal heirs of the de -ceased subscriber. In addition to death certificate, the legal heirs also have to submit a succession certificate or letters of administration along with an attested copy of probate of will issued by a competent court. 

Amount up to Rs 1 lakh 

If the amount standing to the credit of the PPF account is up to Rs 1 lakh, the claim may be processed after submission of the following documents: 

*A letter of indemnity. 

*An affidavit. 

*A letter of disclaimer on affidavit. 

*A certificate of death of subscriber on stamped paper. 

Process 

On receipt of application and documents from the nominee(s), if these are found to be in order, all amounts standing to the credit of the PPF account of the deceased subscriber will be repaid to the nominee(s) by the bank or post office. Adjustments will be made according to interest on loans taken by the subscriber. 

Points to note 

*In case of death of one of the nominees, the surviving nominee(s) will also have to provide proof of death of the deceased nominee. 

*The balance in the PPF account continues to earn interest till the end of the month preceding the month in which payment of the deposits stopped. 

Source:-The Economic Times

Discontinuation of PPF Agency Scheme, commission under Pay Roll Scheme (PRSS) and Sanchiyaka Scheme w.e.f.1/10/2016 (SB order 09/2016)

PPF(Amendment) Scheme, 2016 - Premature Closure of PPF Account

First time in 48 years, PPF rate could fall below 8%

For the first time since the Public Provident Fund was established in 1968, the interest rate on the government-managed saving scheme could fall below 8%. Interest rates on small savings schemes, including the PPF and the Senior Citizens' Saving Scheme, are linked to the government bond yields and are revised every three months. The last interest rate revision on 19 March saw the PPF rate being cut 60 basis points from 8.7% to 8.1%. 

Now, given that the average 10-year benchmark bond yield has been nearly 7.5% between March and May, analysts believe the rate for PPF could be cut to 7.75%. "The PPF rate is 25 basis points higher than the 10-year benchmark bond yield. So it could be revised to 7.75% for the next quarter," says Manoj Nagpal, CEO of Outlook Asia Capital. If the PPF rate is indeed cut by 25-35 basis points, this would be the first time that the scheme will give less than 8% in its 48-year history. 

However, some experts believe that despite the decline in bond yields, the government will not cut the small savings rate in this quarter. "Given the furore over the rate cut in March, the government may not want to alienate the middle class before the assembly elections in 2017," says a mutual fund manager. 

Analysts point out that even if rates are cut, the PPF would still be a good investment due to the low consumer inflation. Though consumer inflation edged up to 5.76% in May, the PPF will still deliver 2% real rate of return. "PPF offers tax-free returns. It should be the instrument of choice for those in the highest tax bracket," says Mumbai-based financial advisor Amol Joshi. 

If interest rates on small savings schemes are cut, senior citizens will be the worst hit. The interest rate of the Senior Citizens' Saving Scheme was reduced from 9.3% to 8.6% in March. It could now recede to 8.25%. An investment of Rs 10 lakh earned them a quarterly pension of Rs 23,250 till last year. Now it will pay only Rs 20,625. 

Source:-The Economic Times