A Public Provident Fund (PPF) account does not get closed automatically. Instead, what happens depends on whether a nominee or legal heir exists.
The rules are governed by the Ministry of Finance (India) / Post office and bank PPF guidelines.
1. If a Nominee is Registered
This is the most common case.
What happens:
The nominee can claim the full balance in the PPF account
The account is closed after settlement
Interest is paid up to the month preceding settlement (as per rules)
Documents needed:
Death certificate
Claim form (usually Form G)
ID proof of nominee
Original PPF passbook
2. If No Nominee is Registered
If the account holder did NOT appoint a nominee:
What happens:
The money goes to the legal heirs
They must prove legal ownership (via succession certificate or legal heir certificate)
Settlement takes longer due to legal verification
Additional requirements:
Succession certificate from court OR
Legal heir certificate from local authorities
Indemnity bond (in some cases)
3. Joint Ownership? (Important Clarification)
PPF accounts cannot be opened jointly.
So:
Only one person owns the account
Nomination is the key factor for smooth transfer
4. Interest After Death
Interest continues to be paid until the month before the account is closed
After closure, no further interest accrues
5. Can the Account Be Continued?
No.
A PPF account is non-transferable and must be closed after death
It cannot be continued by nominee or heirs
Simple Summary
After the death of a PPF account holder:
✔ With nominee → money goes directly to nominee, account closes
✔ Without nominee → legal heirs claim via succession process
❌ Account cannot be continued or transferred
Disclaimer:
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