According to India Post, when a PPF account holder dies, the account is immediately closed and cannot be continued by nominees or legal heirs. The existing balance continues to earn interest until the end of the month preceding the month when the eligible balance is paid to the nominee or legal heir. Once the claim process is completed, the entire eligible balance is paid to the nominee or legal heir, and the account is closed permanently.
Under the PPF scheme rules, the minimum deposit required in a financial year is ₹500, while the maximum deposit allowed is ₹1.50 lakh in a financial year. This limit applies collectively across all PPF accounts, including the account holder's own PPF account and any accounts opened on behalf of minor children. The scheme does not allow fresh deposits after the account holder's death, as reported by India Post.
The interest earned in PPF accounts is calculated monthly but credited to the account at the end of each financial year. As reported by India Post, one of the key benefits of the PPF scheme is its tax-free interest treatment under the Income Tax Act. The interest continues to earn until the month preceding when the eligible balance is paid to the nominee or legal heir, providing some final returns on the account balance.
