New PPF rules target accounts without guardians, aims to prevent exploitation

Government sources have clarified recent misunderstandings regarding the Small Savings Circular, following misleading information on social media platforms like Twitter, CNBC-TV18 reports.

According to the government sources to CNBC-TV18, PPF accounts that have been opened solely in the name of a minor without a guardian are considered irregular. The new rules address only these irregular accounts that deviate from established scheme guidelines.

The circular aims to address several cases where accounts were opened in the name of minors to circumvent the limit of one PPF account per person. The primary objective is to regularise these accounts and prevent individuals from exploiting the system.

The government also confirmed that PPF accounts can be legitimately opened for minors, provided they are done with a guardian involved. This step is intended to ensure adherence to PPF guidelines and to rectify any deviations from the rules.