When a PPF account holder dies, the account shall be closed permanently and the nominee or legal heir can claim the balance after submitting prescribed documents to the bank or post office. According to reports from Mint, the account holder can declare one or more individuals as nominees, with a maximum of four nominees allowed. The nominee can modify these details without paying the ₹50 fee that was previously charged by financial institutions and post offices.
To claim PPF funds after the account holder's death, the nominee must provide a certified copy of the death certificate, complete Form G for claiming the PPF balance, and submit identity proofs of the nominee or legal heir. As reported by Mint, if the claim is made by legal heirs, proof of relationship must be established through a succession certificate, will, or legal heir certificate. The entire eligible balance is paid to the nominee or legal heir once the claim process is completed.
Despite account closure, the existing balance continues to earn interest until the end of the month preceding the month in which the money is finally paid to the nominee or legal heir. According to Mint reports, no fresh contributions can be made after the account holder's death, and the account cannot be extended or operated further in another person's name or on behalf of the late account holder. Each account holder must make a minimum contribution of ₹500 annually with contributions capped at ₹1.5 lakh per financial year.
PPF currently offers an interest rate of 7.1% per annum, revised quarterly and compounded annually, with a maturity period of 15 years. As reported by Mint, the scheme falls under the EEE (Exempt-Exempt-Exempt) category, making contributions eligible for tax deduction under Section 80C up to ₹1.5 lakh annually. The interest earned is completely tax-free, and maturity proceeds are entirely exempt from tax, ensuring investors receive the full benefit of their accumulated corpus without deductions.
