Government clarifies about PPF changes, urges public against misinterpretations; Here is what you need to know: Report

Indian Government, in response to the misinterpretations and misunderstandings over the Public Provident Fund (PPF) rules on social media, clarified the recent changes, reported CNBC TV-18 on Sunday, September 8.

The government clarification came forth from a small savings circular that sparked confusion among the people, the majority on platform X. The Officials highlighted that the Public Provident Fund (PPF) accounts opened for minors without a guardian are considered irregular and do not comply with the set guidelines, according to the report.

The new rules are targeted towards the irregular accounts that have been opened in alteration to the scheme's set guidelines, according to the news portal. Media reports show that some individuals have opened multiple accounts in the name of the minors to find a away around the guideline of a single account per person limit, said the report.

The main goal of the small savings circular is to regularise similar accounts and ensure that people comply with the regulations. The authorities warned those who are attempting to bypass the Public Provident Fund guidelines that they may face complications if their accounts are detected in the process, according to the news portal report.

It is important to note that the Public Provident Fund accounts can still be opened for minors if they are done under a guardian. This ensures that the accounts stick to the required guidelines and safeguards the intent to protect the interest of young account holders, as per the report.

The government urged the public to stay informed and avoid such misinterpretation and misunderstandings with regards to the Public Provident Fund scheme and its guidelines, according to the report.

As Mint reported earlier, the updated guidelines address six categories of irregular Public Provident Fund accounts: NSS accounts, PPF accounts opened in the name of a minor, multiple PPF accounts, PPF account extensions by NRIs, and Sukanya Samriddhi Accounts (SSA) opened by grandparents who are not legal guardians.