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I opened (first) PPF account in Union Bank of India at City X-branch (I live in city-Y which is away from city-X by almost 3 hour travel by railways) where my dad used to work. Now he is retired so am not able to deposit amount in my PPF account as UBI does not provide operating PPF online, and I don't like to go to city-X branch from city-Y. So I opened another account at Axis bank which allow to operate PPF online (They didn't told me that I cannot open second account even after I told them that I already have one open). Now I realize that one cannot have more than one PPF account. Even worse, if I open 2nd PPF account, the 2nd account you have opened will be closed, and you will be refunded only the principal amount, not the interest as given 3rd point in this link

Also I heard that if I have to transfer PPF account from one bank to another, I have to get the cheque from my first bank and give it to second bank while opening PPF. However I have already opened 2nd PPF account.

So what should I do now? I want to operate my 2nd account not the first one. (I have very nominal amount in both accounts not exceeding 5K in total). How can I fix this?

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So what should I do now? I want to operate my 2nd account not the first one. (I have very nominal amount in both accounts not exceeding 5K in total). How can I fix this?

Declare to Axis Bank that your PPF account is second account. They will have to close this account and refund you the principal. This is as per law.

Go to UBI and either transfer the PPF Account to a Branch near you or use the cheque to open a new account.

  • sadly I feel this process is long and very nerve taking...I dont thinks those bank employees will support me any good...Hopefully at least in one year I will get my PPF fixed...gov should handle this stuff well...giving this to banks for management is very bad, at least they should have let me not open two PPF accounts, but there is no check of existing PPF account before opening new one...can I raise a complain of this anywhere? – Mahesha999 Mar 10 '16 at 7:56
  • also is there any doc online on government site which explains this procedure? – Mahesha999 Mar 10 '16 at 8:00
  • @Mahesha999 There is no single document. The rules have evolved and there are quite a few clarifications that lead to the current explanation. – Dheer Mar 10 '16 at 8:15
  • But there has to be some legal documentation right? Or our government does not do such documentation? Or at least does make such documentations public? – Mahesha999 Mar 11 '16 at 11:45
  • @Mahesha999 One would have to go through the clarifications issued by the department. It would be somewhere in the official communications from the concerned department. – Dheer Mar 14 '16 at 11:22

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