What changed
Earlier, for PPF, the date of deposit for a local cheque or demand draft was the date of tender. Now, it will be the date of realisation, bringing PPF in line with Post Office Savings Schemes and Senior Citizens Savings Scheme. The change is effective from February 10, 2010, per Government of India letter.
What it means for you
Banks must update their systems to record the date of realisation as the deposit date for PPF cheque payments, not the tender date. This affects interest calculation and deposit deadlines for subscribers. Additionally, banks must ensure only one parent opens a PPF account for a minor, as per existing rules.
What you must do
- Update your PPF processing system to use the date of cheque realisation as the date of deposit.
- Display the new deposit date rule at branches for customer awareness.
- Reiterate to branches that only one parent (father or mother) can open a PPF account for a minor child.
- Train staff on the revised deposit date calculation to avoid errors in interest crediting.
Who it affects
All agency banks handling PPF accounts, PPF subscribers depositing via cheque or demand draft, Branch staff processing PPF transactions
What is the new date of deposit for PPF cheque payments?
From February 10, 2010, the date of deposit for a local cheque or demand draft is the date the amount is realised, not the date of tender. This aligns PPF with other small savings schemes.
Can both parents open a PPF account for the same minor child?
No. As per Ministry of Finance clarification, either father or mother can open a PPF account on behalf of a minor child, but not both.