Two PPF accounts - One is dormant, depositing regularly in another PPF account of mine

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14-04-2011
Sumant

Two PPF accounts - One is dormant, depositing regularly in another PPF account of mine

I had opened my PPF account with PNB in the year 2000 and deposited Rs. 1000/- in it. Later on one PPF agent contacted me and told me that if I open PPF account (with his agency code) then on every year, on PPF deposit money, he will give me 0.5 % commission back to me. I told him about my existing PPF account, then he told me that it’s not a problem. He advised me not to deposit anything in that account so that it will become dormant. I had opened new PPF account as per his advice with his agency code. I am depositing regularly Rs 50,000/- in my new account and not depositing any money in my old PPF account.
1- What will happen in my case?
2- Will I get deposited money along with interest or will I get only deposited money?
16-04-2011
tigershark

Quote:

Originally Posted by Sumant

I had opened my PPF account with PNB in the year 2000 and deposited Rs. 1000/- in it. Later on one PPF agent contacted me and told me that if I open PPF account (with his agency code) then on every year, on PPF deposit money, he will give me 0.5 % commission back to me. I told him about my existing PPF account, then he told me that it’s not a problem. He advised me not to deposit anything in that account so that it will become dormant. I had opened new PPF account as per his advice with his agency code. I am depositing regularly Rs 50,000/- in my new account and not depositing any money in my old PPF account.
1- What will happen in my case?
2- Will I get deposited money along with interest or will I get only deposited money?

You can have only one PPF account in your name. If, at any point, it is detected by the authorities that you have two accounts, the second account you have opened will be closed. You will be refunded only the principal amount or deposited money (not the interest).
16-04-2011
Sumant

Thanks for the info! So if I hide the info of having the second account, I will get the interest in second account.
16-04-2011
tigershark

Quote:

Originally Posted by Sumant

Thanks for the info! So if I hide the info of having the second account, I will get the interest in second account.

When you sign new account opening form, you declare that you have no other PPF account in your name. So you have given wrong info at the time of account opening.