PUBLIC PROVIDENT FUND SCHEME, 1968

Sche.1 Short title and commencement.--

(1) This scheme may be called the Public Provident Fund Scheme, 1968.
(2) It shad come into force on 1st July, 1968.

Sche.2 Definitions.--

       In this Scheme unless the context otherwise requires,--
       (a) "account" means a Public Provident Fund Account under this Scheme;
       (b) "accounts office" means an office or branch of the State Bank of India, any subsidiary bank of the State Bank of India (excluding a pay-office, a sub pay-office or any other office managed by a single officer or clerk) and any other office authorised by the Central Government to receive subscriptions under the Scheme;
       (c) "accounts officer" means the person who, for the time being, is in charge of an accounts office;
       (d) "Act" means the Public Provident Fund Act, 1968 (23 of 1968);
       (e) "Form" means a form appended to this Scheme;
       (e

Sche.3 Limits of subscription.--

       (1) Any individual may, on his behalf or on behalf of a minor of whom he is the guardian, subscribe to the Public Provident Fund (hereinafter referred to as the "Fund") any amount not less than 9[Rs. 500] and not more than 18[Rs 1,00,000] in a year.
       4[***]
       7[(3) Non-Resident Indians (NRIs) are not eligible to open an account under the Public Provident Fund Scheme:
       Provided that if a resident who subsequently becomes NRI during the currency of maturity period prescribed under Public Provident Fund Scheme, may continue to subscribe to the Fund till its maturity on a non-repatriation basis.]
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       9. Substituted by GSR679(E) dated 04.10.

Sche.4 Manner of making the subscription.--

(1) Every individual desirous of subscribing to the Fund under this Scheme for the first time, either in his own behalf or on behalf of a minor of whom he is the guardian or on behalf of a Hindu undivided family of which he is a member or on behalf of an association of persons or a body of individuals as referred to in clause (g) of sub-section (2) of section 80C of the Income-tax Act, 1961 (43 of 1961), shall apply to the accounts office in Form A, or as near thereto as possible, together with the amount of initial subscription, which shall be in integral multiples of Rs. 5.
(2) On receipt of an application under sub-paragraph (1), the accounts office shall open an account in the name of the subscriber and issue a pass book to him, wherein all amounts of deposits, withdrawals, loans and repayment thereof together with interest due shall be entered over the signature of the account

Sche.5 Number of subscriptions.

The subscriptions, which shall be in multiples of Rs. 5, may, for any year, be paid into the account in one lump sum or in instalments not exceeding twelve in a year.

Sche.6 Transfer of accounts.--

A subscriber may apply for transfer of his account from one accounts office to another accounts office.

Sche.7 Issue of duplicate pass book, etc.--

       (1) In the event of loss or destruction of a pass book issued by an accounts office, the office may, on an application made to it in this behalf, and on payment of rupee one by the subscriber, issue a duplicate thereof to him.
       (2) A subscriber who fails to subscribe in any year according to the limits specified in paragraph 3, may approach the accounts office for condonation of the default, on payment, for each year of default, a fee of 10[Rs. 50] along with arrears subscription of 10[Rs. 500] for each such year.
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10. Substituted by GSR679(E) dated 04.10.2005 for the words Rs. 10 and Rs. 100/- respectively.

Sche.8 Interest. --

Interest at the rate, notified by the Central Government in the Official Gazette from time to time, shall be allowed for each calendar month on the lowest balance at credit of an account between the close of the fifth day and the end of the 'month and shall be credited to the account at the end of each year:
Provided that where the interest to be credited contains a part of a rupee, then, if such part is fifty paise or more, it shall be increased to one complete rupee, and if such part is less than fifty paise, it shall be ignored.

Sche.9 Withdrawal from the Fund.--

       (1) Any time after the expiry of five years from the end of the year in which the initial subscription was made, a subscriber may, if he so desires, apply in Form C, or as near thereto as possible, together with his pass book to the accounts office, for withdrawing from the balance to his credit and amount not exceeding fifty per cent of the amount that stood to his credit at the end of the fourth year immediately preceding the year of withdrawal or at the end of the preceding year, whichever is lower, less the amount of loan, if any, drawn by him under paragraph 10 and which remains to be repaid:
       Provided that not more than one withdrawal shall be permissible during any one year.
       (2) On receipt of an application under sub-paragraph (1), the accounts office may, after satisfying itself that the amount of withdrawal applied for is not in

Sche.10 Loan.--

(1) Not withstanding the provisions of paragraph 9, any time after the expiry of one year from the end of the year in which the initial subscription was made but before the expiry of five years from the end of the year in which the initial subscription was made, a subscriber may, if he so desires, apply in Form D, or as near thereto as possible, together with his pass book, to the accounts office for "obtaining a loan consisting of a sum of whole rupees not exceeding twenty-five percent of the amount that stood to his credit at the end of the second year immediately preceding the year in which the loan is applied for. (2) On receipt of an application under sub-paragraph (1), the accounts office may, after satisfying itself that the amount of loan applied for is not in excess of the limit prescribed in sub-paragraph (1) and that the applicant has, till the date of application, been subscribing according to the limit specified

Sche.11 Repayment of loan and interest.--

       (1) The principal amount of a loan under this Scheme shall be repaid by the subscriber before the expiry of thirty-six months from the first day of the month following the month in which the loan is sanctioned. The repayment may be made either in one lump sum or in two or more monthly instalments within the prescribed period of thirty-six months. The repayment will be credited to the subscriber's account.
       (2) After the principal of the loan is fully repaid, the subscriber shall pay interest thereon in not more than two monthly instalments at the rate of 19[two per cent. per annum] of the principal for the period commencing from the first day of the month following the month in which the loan is drawn up to the last day of the month in which the last instalment of the loan is repaid:
       Provided that where the loan is not repaid or is repaid

Sche.12 Nomination and repayment after death of subscriber.--

       (1) A subscriber to the Fund may nominate in Form E, or as near thereto as possible, one or more persons to receive the amount standing to his credit in the event of his death before the amount has become payable or, having become payable, has not been paid.
       5[***]
       (2) No nomination shall be made in respect of an account opened on behalf of a minor.
       (3) A nomination made by a subscriber may be cancelled or varied by a fresh nomination in Form F, or as near thereto as possible, by giving notice in writing to the accounts office in which the account stands.
       (4) Every nomination and every cancellation or variation thereof shall be registered in the accounts office and shall be effective from the date of such registration, the particulars of which shall

FORM.A FORM A

       FORM A
       [See sub-paragraph (1) of paragraph 4]
       Serial No...............................
       Application for opening a public provident fund account under the Public Provident Fund Scheme, 1968
       To,
       The Branch Manager/Postmaster

       ..............................(Name of the Bank/Post Office)
       PAN No.........,............"
       I ...........................................................hereby apply for opening an account under the Public Provident Fund, Scheme, 1968, in my name/in the name of Kumar/Kumari....................................

Legal Commentary on Act: PUBLIC PROVIDENT FUND SCHEME, 1968 - Section: FORM.A

Introduction

The Public Provident Fund Scheme, 1968, established under the PPF Act, 1968, is a government-backed savings scheme aimed at mobilizing small savings for social security and long-term financial planning. It provides individuals with a secure avenue for savings, offering tax benefits and assured returns, primarily targeting residents of India for retirement and social security purposes.

What does Section Says

Section FORM.A of the scheme pertains to the prescribed format for opening a Public Provident Fund (PPF) account. It specifies the necessary details and documentation required for establishing the account, ensuring uniformity and compliance with statutory requirements.

Essential Ingredients

Submission of prescribed application form (FORM.A)
Provision of personal details, including name, address, and identification
Declaration of eligibility criteria (e.g., resident Indian individual)
Affidavit or declaration as required under the scheme
Signature of the applicant and witnesses
Submission of initial deposit as per scheme rules

Scope of Section

Section FORM.A primarily governs the procedural aspect of account opening, including the format, content, and submission process. It ensures standardization across all authorized banks and post offices for establishing PPF accounts, facilitating easy verification and compliance.

Punishment for Section

The section itself does not specify punitive provisions. However, violations related to false declarations or non-compliance with the prescribed format may attract penalties under the broader provisions of the PPF Act or applicable laws concerning fraudulent statements.

Legal Comments

Account Opening - Section mandates the use of FORM.A for opening PPF accounts, ensuring uniformity and legal compliance in account registration [India Code].
Procedural Requirement - The form requires personal details, declaration of eligibility, and initial deposit, establishing a clear procedural framework for account creation [India Post].
Eligibility - Only resident Indian individuals can open PPF accounts, as specified in the scheme, restricting non-residents and certain entities [India Kanoon].
Declaration & Signature - The form necessitates declarations and signatures, which are crucial for legal validity and to prevent fraud [Bank of Maharashtra].
Standardization - FORM.A serves to standardize account opening procedures across all authorized institutions, facilitating regulatory oversight [India Post].
Legal Validity - Proper completion and submission of FORM.A confer legal validity to the account, making it eligible for benefits under the scheme [India Code].
Compliance & Verification - The prescribed format aids authorities in verifying authenticity and compliance with scheme provisions [SBI FAQ].
Fraud & False Declaration - Any false declaration in FORM.A can lead to legal penalties under the PPF Act or IPC, emphasizing the importance of truthful disclosures [India Kanoon].
Amendments & Updates - The form and its requirements may be amended from time to time by the government, subject to notifications [India Post].
Role of Banks & Post Offices - These institutions are mandated to ensure proper collection and verification of FORM.A, acting as custodians of legal compliance [Bank of India].
Account Revival & Penalties - Discontinued accounts require revival via prescribed forms, including FORM.A, with penalties for defaulting on deposits or declarations [Bank of Maharashtra].
Tax & Legal Benefits - Properly documented accounts under FORM.A are eligible for tax benefits under Income Tax Act, enhancing legal security for investors [India Post].
No Specific Punishment in Section - The section does not prescribe specific penalties but violations may attract penalties under related laws [India Code].
Protection of Personal Data - The form must be filled with accurate data, as misrepresentation can lead to legal consequences, including account cancellation [India Kanoon].
Legal Framework - FORM.A operates within the broader legal framework of the PPF Scheme and the PPF Act, ensuring statutory compliance [India Code].
Transparency & Accountability - The prescribed format promotes transparency and accountability in the account opening process, reducing chances of misuse [SBI FAQ].

This legal commentary synthesizes available sources to provide an analytical overview of Section FORM.A of the Public Provident Fund Scheme, 1968.

FORM.B FORM B

       FORM B
       [See sub-paragraph (3) of paragraph 4]
       Name of Agent............................................ Paper Token No..........................................
       Code No..........................................................
       PUBLIC PROVIDENT FUND SCHEME. 1968
       Challan for deposit of money into Government Account
       ..........................................................
       [Name of Accounts Office]
       Account No ................................................. Date............................................
       Name of Subscriber......

FORM.C FORM C

       [See sub-paragraphs (1) and (3) of paragraph 9]
       STATE BANK OF.....................................
       Application form for withdrawals under the Public Provident Fund Scheme, 1968
       To
       The Agent/Manager,
       State Bank of............................................
       1. I wish to withdraw from Public Provident Fund Account No..............................a sum of Rs..................(Rupees.......................). A period of.................................... years has expired from the end of the year in which the initial subscription was made.
       1A. I have not made any withdrawal in the current year.
   &nb

FORM.D FORM D

       FORM D
       [See paragraph 10]
       Application for a loan under the Public Provident Fund Scheme, 1968
       To
       Sir,
       1. I wish to take a loan from Public Provident Fund Account No.........................................................of a sum of Rs. ....................................................(Rupees..........................................) which I undertake to repay with interest within the period of twenty-four months as prescribed in paragraph 11 of the Public Provident Fund Scheme, 1968.
       2. I had taken a loan of Rs...........................................(Rupees..............................................) on............................................whic

FORM.E FORM E

       FORM E
       [See sub-paragraph (1) of paragraph 12]
       STATE BANK OF.................................................
       Nomination under the Public Provident Fund Scheme, 1968
       To
       The Agent/Manager,
       State Bank of............................................................
       I..................................................... hereby nominate the person(s) mentioned below to whom to the exclusion of all other persons, in the event of my death, the amount standing to my credit in the Public Provident Fund Account No............................................. at the time of my death would be payable :--
   &nb

FORM.F FORM F

       FORM F
       [See sub-paragraph (3) of paragraph 12]
       STATE BANK OF............................
       Cancellation or variation of nomination previously made in respect of Account No.....................................................under the Public Provident Fund Scheme, 1968
       Date...........................
       To
       The State Bank of..............................
       ................................................................
       I................................................................................ the subscriber in Public Provident Fund Account No................................

FORM.G FORM G

       FORM G
       [See sub-paragraph (5) of paragraph 12]
       STATE BANK OF........................................
       Application for withdrawal by nominees/legal heirs under the Public Provident Fund Scheme, 1968
       To
       The A gent/Manager,
       State Bank of................................................................
       ........................................................................................
       I/We......................................................... the nominee(s)/legal heir(s) of late..................................... the subscriber to Public Provident Fund Account No......

FORM.H FORM H

       FORM H
       [See sub-paragraph (2A) of paragraph 9]
       Application for continuance of account under the Public Provident Fund Scheme, 1968 beyond 15 years
       To .
       The Agent/Manager/Post Master,
       ......................................................................
       My Public Provident Fund Account No...................................................... has completed 15 years, after the initial year of its commencement, on ........................................
       I wish to continue to subscribe to my above-referred account for a further block period of 5 years according to the limits prescribed in paragraph 3 of the Scheme.
&

ANNEXURE.1 ANNEXURE

       ANNEXURE
       LIST OF BRANCHES OF NATIONALISED BANKS AUTHORISED TO RECEIVE SUBSCRIPTION UNDER THE SCHEME
       [See Note below rule 2]
       In pursuance of clause (b) of paragraph 2 of the Public Provident Fund Scheme, 1968, published with the Notification of the Government of India in the Ministry of Finance (Department of Economic Affairs) No. GSR 1136, dated 15th June, 1968, the Central Government hereby authorises the branches of nationalised banks specified in the Table below to receive, with effect from 1st April, 1983, subscriptions under the said Scheme:
       TABLE
       Name of the Bank Location of the Branch
       1.
        Central Bank of Ind