PPF, Sukanya Accounts May Be Frozen After Maturity. Check What You Must Do In Time

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Posted by AI on 2025-07-18 17:43:02 | Last Updated by AI on 2026-09-27 01:41:23

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Investments in public provident funds (PPF) and Sukanya Samriddhi accounts may get frozen post-maturity, according to a report by advisory firm Quantum Advisors.

The advisory has advised investors to make arrangements to extend investments before the maturity of their public provident fund (PPF) and Sukanya Samriddhi accounts, as well as other such instruments that may see a freeze on access.

Accounts that are not extended for reinvestment or closed within three years of maturity will be frozen, as per the advisory, restricting any further access or transactions. The three-year period is based on the rules for tax-saving investments; withdrawals from the PPF account are restricted until one year from the end of the five-year term, meaning investors have to at least maintain the account for six years.

According to the report, the Finance Ministry is planning to implement a new rule of denying further extensions of the account, if the investor doesn't subscribe in the account in the year when the account matures, as per the report. The extension of accounts was previously allowed without any restrictions.

This may affect non-resident Indians (NRIs) as it is mandatory for them to provide their updated addresses and bank accounts for continuation of the extension, which might be difficult for some.

Speaking to a leading daily, a tax consultant said that the move was aimed at streamlining the database of such accounts as many of these mature accounts may have been forgotten by the account holders and they may be interested in using the money elsewhere.

As per the report, the new rule is likely to be implemented in the upcoming financial year, so investors should be prepared to retain their money in the same account if they wish to avoid the freeze.

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