Friday, March 03, 2017

Clarification in Sales of Gold Bond BD Section

It is brought to the notice of this office that some of the Divisions are now enquiring whether Cheque payment can be accepted for sale of Gold Bond.
Image result for Sovereign Gold Bond Scheme at Post Offices
Please guide us whether the payment through cheque can now be accepted.

It is requested to kindly issue clarification to us immediately as the sale closes today.

Clarification

Cheque may be accepted at the Post Offices subjected to realization. As the data entry web URL is made available upto 08.03.2017. Cheque should be cleared before.08.03.2017 to make data entry of the said applications.

With Regards,
 Director,
(SGB Cell)
Mumbai GPO-400001.

Cash withdrawal limit (Rs.50,000/-) week from 03.03.17 to 09.03.2017​ , is configured

Cash withdrawal limit (Rs.50,000/-)  week from 03.03.17 to 09.03.2017​ , is configured

On boarding of PLI / RPLI on DBT Scheme

Post Offices as Registration Centers for unemployed youth - Directorate Letter

Click below link to download DO Letter / MoU related to Employment Registration centre

Simplicity is key for India Post Payments Bank: CEO

Payments banks are a step in right direction which will redefine banking in India. India Post Payments Bank is doing all it can to step up financial inclusion in the country. In an interview with Mint, India Post Payments Bank Chief Ashok Singh said that simplicity is key for its operations.

“I just have to keep it simple which is also an operational necessity. Simplicity hurts no one,” said Singh.

The bank, which became the second entity to start operations in January by launching a pilot in Raipur and Ranchi, plans to scale up its branches to 650 by end of September. With a bottom-up approach, the bank is targeting people with no mobile phones and who rely on direct benefit transfers (DBT).
Singh said he aims to simplify payments for both feature phone and smartphone customers and the focus will be on payment solutions and not on banking solutions.

Customers can even borrow money at this bank. India Post will offer small-ticket loans but the bank is yet to place an analytics engine to track transaction history of its customers.

Other services the bank will provide are in the mutual fund and insurance space. The bank is looking at only index funds for the former as for the latter, it will only focus on life cover products.

The central bank has given in-principle approval to 11 applicants for a payments bank. So, India Post has competition. When Airtel Payments Bank gives its customers 6.1 percent, India Post has fixed interest rates at 4.5 percent. But, Singh says that unlike other payments banks, India Post doesn’t charge a transaction fee.

To keep things easy and simple for both customers and employees, Aadhaar will be used and transactions will be enabled via bio metrics.
Source:- moneycontrol

List of Allowances for Government Employee : 7th Pay Commission

style="text-align: left;" trbidi="on"> Article List of Allowances for Government Employee : 7th Pay Commission cover list of allowance in 7th pay commission. This is the general list for central government employee and state government employee. Some of these allowances are abolished by 7th pay panel in 7th cpc, some allowances are increased by percentage and some remain as it is.
Sr No. Name Recommendation
of the Allowance
1 Accident Allowance Not included in the report.
2 Acting Allowance Abolished as a separate allowance. Eligible employees to be governed
by the newly proposed “Additional Post Allowance.”
3 Aeronautical Allowance Retained. Enhanced by 50%.
4 Air Despatch Pay Abolished.
5 Air Steward Allowance Abolished.
6 Air Worthiness Certificate Allowance Retained. Enhanced by 50%.
7 Allowance in Lieu of Kilometreage (ALK) Not included in the report.
8 Allowance in Lieu of Running Room Facilities Not included in the report.
9 Annual Allowance Retained. Enhanced by 50%. Extended to some more
categories.
10 Antarctica Allowance Retained. Rationalised. To be paid as per Cell RH-Max of the newly
proposed Risk and Hardship Matrix.
11 Assisting Cashier Allowance Abolished.
12 ASV Allowance Abolished.
13 Bad Climate Allowance Abolished as a separate allowance. Subsumed in Tough
Location Allowance-III. To be paid as per Cell R3H3 of the newly proposed
Risk and Hardship Matrix.
14 Bhutan Compensatory Allowance Retained. Status Quo to be maintained.
15 Boiler Watch Keeping Allowance Retained. Rationalised. To be paid as per Cell R3H1
of the newly proposed Risk and Hardship Matrix.
16 Book Allowance Retained. Status Quo to be maintained.
17 Breach of Rest Allowance Not included in the report.
18 Breakdown Allowance Abolished.
19 Briefcase Allowance Retained. Status Quo to be maintained.
20 Camp Allowance Abolished as a separate allowance. Subsumed in the newly proposed
Territorial Army Allowance.
21 Canteen Allowance Retained. Enhanced by 50%.
22 Caretaking Allowance Abolished as a separate allowance. Eligible employees to be governed
by the newly proposed “Extra Work Allowance”
23 Cash Handling Allowance Abolished.
24 Children Education Allowance (CEA) Retained. Procedure of payment simplified.
25 CI Ops Allowance Retained. Rationalized.
26 Classification Allowance Retained. Enhanced by 50%.
27 Clothing Allowance Abolished as a separate allowance. Subsumed in the
newly proposed Dress Allowance.
28 Coal Pilot Allowance Abolished
29 COBRA Allowance Retained. Rationalised. To be paid as per Cell R1H1
of the newly proposed Risk and Hardship Matrix.
30 Command Allowance Abolished
31 Commando Allowance Abolished
32 Commercial Allowance Abolished
33 Compensation in Lieu of Quarters (CILQ) Abolished as a separate allowance. Eligible
employees to be governed by the newly proposed provisions for Housing for
PBORs.
34 Compensatory (Construction or Survey) Allowance Retained. Rationalised. To be paid as per Cell R3H2 of the newly
proposed Risk and Hardship Matrix.
35 Composite Personal Maintenance Allowance (CPMA) Retained. Rationalised. Enhanced by 50%. Extended to
some more categories.
36 Condiment Allowance Abolished.
37 Constant Attendance Allowance Retained. Enhanced by 50%.
38 Conveyance Allowance Retained. Status Quo to be maintained.
39 Cooking Allowance Retained. Rationalised. To be paid as per Cell R3H3
of the newly proposed Risk and Hardship Matrix.
40 Cost of Living Allowance Retained. Status Quo to be maintained.
41 Court Allowance Abolished.
42 Cycle Allowance Abolished.
43 Daily Allowance Retained. Rationalized.
44 Daily Allowance on Foreign Travel Retained. Status Quo to be maintained.
45 Dearness Allowance (DA) Retained. Status Quo to be maintained.
46 Deputation (Duty) Allowance for Civilians Retained. Ceilings enhanced by 50%.
47 Deputation (Duty) Allowance for Defence Personnel Retained. Ceilings enhanced by 50%.
48 Desk Allowance Abolished.
49 Detachment Allowance Retained. Rationalized. Enhanced by 50%.
50 Diet Allowance Abolished.
51 Diving Allowance, Dip Money and Attendant Allowance Retained. Enhanced by 50%.
52 Dual Charge Allowance Abolished as a separate allowance. Eligible employees to be governed
by the newly proposed “Additional Post Allowance”.
53 Educational Concession Retained. Rationalized. Extended to some more
categories.
54 Electricity Allowance Abolished.
55 Entertainment Allowance for Cabinet Secretary     Abolished.
56 Entertainment Allowance in Indian Railways            Abolished.
57 Extra Duty Allowance Abolished as a separate allowance. Eligible
employees to be governed by the newly proposed “Extra Work Allowance”.
58 Family Accommodation Allowance (FAA) Abolished as a separate allowance. Eligible employees to be governed
by the newly proposed provisions for Housing for PBORs.
59 Family HRA Allowance Retained. Status Quo to be maintained.
60 Family Planning Allowance Abolished.
61 Field Area Allowance Retained. Rationalized.
62 Fixed Medical Allowance (FMA) Retained. Status Quo to be maintained.
63 Fixed Monetary Compensation Abolished as a separate allowance. Eligible
employees to be governed by the newly proposed “Additional Post Allowance”.
64 Flag Station Allowance Abolished as a separate allowance. Eligible employees to be governed
by the newly proposed “Extra Work Allowance”.
65 Flight Charge Certificate Allowance Abolished as a separate allowance. Eligible
employees to be governed by the newly proposed “Extra Work Allowance”.
66 Flying Allowance Retained. Rationalised. To be paid as per Cell R1H1 of the newly
proposed Risk and Hardship Matrix.
67 Flying Squad Allowance Abolished.
68 Free Fall Jump Instructor Allowance Retained. Rationalised. To be paid as per Cell R2H2 of the newly
proposed Risk and Hardship Matrix.
69 Funeral Allowance Abolished.
70 Ghat Allowance Not included in the report.
71 Good Service Good Conduct-Badge Pay Retained. Enhanced by a
factor of 2.25.
72 Haircutting Allowance Abolished as a separate allowance. Subsumed in Composite Personal
Maintenance Allowance.
73 Handicapped Allowance Abolished.
74 Hard Area Allowance Retained. Rationalized by a factor of 0.8.
75 Hardlying Money Retained. Rationalised. Full Rate to be paid as per
Cell R3H3 of the newly proposed Risk and Hardship Matrix.
76 Headquarters Allowance Abolished.
77 Health and Malaria Allowance Retained. Rationalised. To be paid as per Cell R3H3
of the newly proposed Risk and Hardship Matrix.
78 High Altitude Allowance Retained. Rationalized.
79 Higher Proficiency Allowance Abolished as a separate allowance. Eligible
employees to be governed by Language Award or Higher Qualification Incentive
for Civilians.
80 Higher Qualification Incentive for Civilians Retained. Rationalized.
81 Holiday Compensatory Allowance Abolished as a separate allowance. Eligible
employees to be governed by National Holiday Allowance.
82 Holiday Monetary Compensation Retained. Rationalized.
83 Hospital Patient Care Allowance Patient Care Allowance Retained. Rationalised. To be paid as per Cell R1H3 of the newly
proposed Risk and Hardship Matrix.
84 House Rent Allowance (HRA) Retained. Rationalized by a factor of 0.8.
85 Hutting Allowance Abolished.
86 Hydrographic Survey Allowance Retained. Rationalized.
87 Initial Equipment Allowance Abolished as a separate allowance. Subsumed in the
newly proposed Dress Allowance.
88 Instructional Allowance Abolished as a separate allowance. Eligible employees to be governed
by Training Allowance.
89 Internet Allowance Retained. Rationalized.
90 Investigation Allowance Abolished.
91 Island Special Duty Allowance Retained. Rationalized by a factor of 0.8.
92 Judge Advocate General Department Examination Award Abolished as a separate allowance. Eligible employees to be governed
by the newly proposed Higher Qualification Incentive for Defence Personnel.
93 Kilometreage Allowance (KMA)   Not
included in the report.
94 Kit Maintenance Allowance Abolished as a separate allowance. Subsumed in the newly proposed
Dress Allowance.
95 Language Allowance Retained. Enhanced by 50%.
96 Language Award Retained. Enhanced by 50%.
97 Language Reward and Allowance Abolished.
98 Launch Campaign Allowance Abolished.
99 Leave Travel Concession (LTC) Retained. Rationalized.
100 Library Allowance Abolished as a separate allowance. Eligible employees to be governed
by the newly proposed “Extra Work Allowance”.
101 MARCOS and Chariot Allowance Retained. Rationalised. To be paid as per Cell R1H1
of the newly proposed Risk and Hardship Matrix.
102 Medal Allowance Retained.
103 Messing Allowance Retained for “floating staff” under Fishery Survey
of India, and enhanced by 50%. Abolished for Nursing Staff.
104 Metropolitan Allowance Abolished.
105 Mileage Allowance for journeys by road       Retained.
106 Mobile Phone Allowance Retained. Rationalized.
107 Monetary Allowance attached to Gallantry Awards Retained. Status Quo to be maintained.
108 National Holiday Allowance Retained. Enhanced by 50%.
109 Newspaper Allowance Retained. Rationalized.
110 Night Duty Allowance Retained. Rationalized.
111 Night Patrolling Allowance Abolished.
112 Non-Practicing Allowance (NPA)    Retained. Rationalized
by a factor of 0.8.
113 Nuclear Research Plant Support Allowance Retained. Enhanced by 50%.
114 Nursing Allowance Retained. Rationalized.
115 Official Hospitality Grant in Defence forces Abolished.
116 Officiating Allowance Not included in the report.
117 Operation Theatre Allowance Abolished.
118 Orderly Allowance Retained. Status Quo to be maintained.
119 Organization Special Pay Abolished.
120 Out of Pocket Allowance Abolished as a separate allowance. Eligible employees to be governed
by Daily Allowance on Foreign Travel.
121 Outfit Allowance Abolished as a separate allowance. Subsumed in the
newly proposed Dress Allowance.
122 Outstation (Detention) Allowance Not included in the report.
123 Outstation (Relieving) Allowance Not included in the report.
124 Out-turn Allowance Abolished.
125 Overtime Allowance (OTA) Abolished.
126 Para Allowances Retained. Rationalised. To be paid as per Cell R2H2 of the newly
proposed Risk and Hardship Matrix.
127 Para Jump Instructor Allowance Retained. Rationalised. To be paid as per Cell R2H2
of the newly proposed Risk and Hardship Matrix.
128 Parliament Assistant Allowance Retained. Enhanced by 50%.
129 PCO Allowance Retained. Rationalized.
130 Post Graduate Allowance Retained. Enhanced by 50%.
131 Professional Update Allowance Retained. Enhanced by 50%. Extended to some more
categories.
132 Project Allowance Retained. Rationalised. To be paid as per Cell R3H2 of the newly
proposed Risk and Hardship Matrix.
133 Qualification Allowance Retained. Enhanced by 50%. Extended to some more
categories.
134 Qualification Grant Abolished as a separate allowance. Eligible employees to be governed
by the newly proposed Higher Qualification Incentive for Defence Personnel.
135 Qualification Pay Retained. Enhanced by a factor of 2.25.
136 Rajbhasha Allowance Abolished as a separate allowance. Eligible employees to be governed
by the newly proposed “Extra Work Allowance”
137 Rajdhani Allowance Abolished.
138 Ration Money Allowance Retained. Rationalized.
139 Refreshment Allowance Retained. Enhanced by a factor of 2.25.
140 Rent Free Accommodation Abolished.
141 Reward for Meritorious Service Retained. Enhanced by a factor of 2.25.
142 Risk Allowance Abolished.
143 Robe Allowance Abolished as a separate allowance. Subsumed in the
newly proposed Dress Allowance.
144 Robe Maintenance Allowance Abolished as a separate allowance. Subsumed in the newly proposed
Dress Allowance.
145 Savings Bank Allowance Abolished.
146 Sea Going Allowance Retained. Rationalised. To be paid as per Cell R2H2 of the newly
proposed Risk and Hardship Matrix.
147 Secret Allowance Abolished.
148 Shoe Allowance Abolished as a separate allowance. Subsumed in the newly proposed
Dress Allowance.
149 Shorthand Allowance Abolished.
150 Shunting Allowance Not included in the report.
151 Siachen Allowance Retained. Rationalised. To be paid as per Cell
RH-Max of the newly proposed Risk and Hardship Matrix.
152 Single in Lieu of Quarters (SNLQ) Abolished as a separate allowance. Eligible employees to be governed
by the newly proposed provisions for Housing for PBORs.
153 Soap Toilet Allowance Abolished as a separate allowance. Subsumed in
Composite Personal Maintenance Allowance.
154 Space Technology Allowance Abolished.
155 Special Allowance for Child Care for Women with Retained. Enhanced by 100%.
Disabilities
156 Special Allowance to Chief Safety Officers Safety Officers Retained. Rationalized by a factor of 0.8.
157 Special Appointment Allowance Abolished as a separate allowance. Eligible
employees to be governed by the newly proposed “Extra Work Allowance”.
158 Special Compensatory (Hill Area) Allowance Abolished.
159 Special Compensatory (Remote Locality) Allowance Abolished as a separate allowance. Eligible
employees to be governed by the newly proposed Tough Location Allowance-I, II
or III.
160 Special DOT Pay Abolished.
161 Special Duty Allowance Retained. Rationalized by a factor of 0.8.
162 Special Forces Allowance Retained. Rationalised. To be paid as per Cell R1H1 of the newly
proposed Risk and Hardship Matrix.
163 Special Incident Investigation Security Allowance Retained.
Rationalized.
164 Special LC Gate Allowance Retained. Rationalised. To be paid as per Cell R3H3 of the newly
proposed Risk and Hardship Matrix.
165 Special NCRB Pay Abolished.
166 Special Running Staff Allowance Retained. Extended to some more categories.
167 Special Scientists’ Pay Abolished.
168 Specialist Allowance Retained. Enhanced by 50%.
169 Spectacle Allowance Abolished.
170 Split Duty Allowance Retained. Enhanced by 50%.
171 Study Allowance Abolished.
172 Submarine Allowance Retained. Rationalised. To be paid as per Cell R1H1 of the newly
proposed Risk and Hardship Matrix.
173 Submarine Duty Allowance Retained. Rationalised. To be paid as per Cell R3H1
of the newly proposed Risk and Hardship Matrix, on a pro-rata basis.
174 Submarine Technical Allowance Retained. Rationalised. To be paid as per Cell R3H3 of the newly
proposed Risk and Hardship Matrix. Extended to some more categories.
175 Subsistence Allowance Retained. Status Quo to be maintained.
176 Sumptuary Allowance in Training Establishments Abolished.
177 Sumptuary Allowance to Judicial Officers in Supreme Abolished.
Court Registry
178 Sunderban Allowance Abolished as a separate allowance. Subsumed in Tough Location
Allowance-III. To be paid as per Cell R3H3 of the newly proposed Risk and
Hardship Matrix.
179 TA Bounty Abolished as a separate allowance. Subsumed in the
newly proposed Territorial Army Allowance.
180 TA for Retiring Employees Retained. Rationalized.
181 TA on Transfer Retained. Rationalized.
182 Technical Allowance Abolished as a separate allowance. Eligible employees to be governed
by the newly proposed Higher Qualification Incentive for Defence Personnel.
183 Tenure Allowance Retained. Ceilings enhanced by 50%.
184 Test Pilot and Flight Test Engineer Allowance Retained. Rationalised. To be paid as per Cell R1H3 of the newly
proposed Risk and Hardship Matrix.
185 Training Allowance Retained. Rationalized by a factor of 0.8. Extended
to some more categories.
186 Training Stipend Abolished.
187 Transport Allowance (TPTA) Retained. Rationalized.
188 Travelling Allowance Retained. Rationalized.
189 Treasury Allowance Abolished.
190 Tribal Area Allowance Abolished as a separate allowance. Subsumed in Tough Location
Allowance-III. To be paid as per Cell R3H3 of the newly proposed Risk and
Hardship Matrix.
191 Trip Allowance Not included in the report.
192 Uniform Allowance Abolished as a separate allowance. Subsumed in the newly proposed
Dress Allowance.
193 Unit Certificate and Charge Certificate Allowance Retained. Enhanced by 50%.
194 Vigilance Allowance Abolished.
195 Waiting Duty Allowance Not included in the report.
196 Washing Allowance Abolished as a separate allowance. Subsumed in the newly proposed
Dress Allowance.

Important EOD Instruction from EOD Support Team Chennai

Dear All

I am directed by the competent authority to convey the following.

On a daily basis, we found that few post offices with either one or two transactions are held in the BV report which blocks us from moving forward.

CPC staff contact the concern monitoring team of DOs/ROs regularly by call and Emails but no action taken by same and offices are pending as well as in BV regularly to late night. In such situation DC closure is affected very badly.

Please take immediate action to reconcile the BV report by 1800 hours daily. It was decided that all post offices in India should clear the blocking validations before 20:00 hours, then the responsibility is given to circle cpcs to clear them within 21:00 hrs, if still cpcs fail to clear the BV by 21:00 hrs,central team will not invoke BV overrule and go home fixing the responsibility on respective circle. Take this positively and arrange to clear the BV transactions by 19:00 hours.

If DC closure is not done for the previous day, issue reaches secretary posts at 22:00 hours daily, in turn will landup in circle quaters on the next day. I am keeping you informed of the forecast, if in any case finacle is not working and it is black out, I will lead you in finding ways and means to handle that situation. If finacle is working fine it must be our duty to progress.

If somebody is not following and violating it, please bring it to the notice of DPS HQ and Chief PMG for taking action.

Regards,
​Kaviraj.N​
CEPT (EOD Central Team),

BRIEF NOTE ON TIE-UP BETWEEN DoP AND MINISTRY OF LABOUR AND EMPLOYMEMNT (MoLE)

The concept of developing a tie-up between DoP and Ministry of Labour and Employment (MoLE) to leverage rural Post Offices as an Employment Registration Centre has been initiated by DoP as a follow up to the recommendations of the Group of Secretaries, appointed by the Hon’ble Prime Minister to explore innovative ideas for transformative change in various areas of governance.
2. A Memorandum of Understanding (MoU) has been signed between DoP and Ministry of Labour and Employment (MoLE) to leverage Post Offices as Employment Registration Centres. The project has been scheduled to be launched on 12-02-2017 at Hyderabad by the Hon’ble Minister for Labour and Employment.

3. The project envisages enabling post offices to function as an Employment Registration Centre for unemployed rural youth through National Career Service (NCS) portal, which facilitates registration / updation of job seekers, job providers, skill providers, career counsellors, etc. The portal provides job matching services in a highly transparent and user friendly manner.

4. The tie-up is expected to bridge the gulf between the net connected urban areas and non connected rural areas, helping the youth to avail facility to register for employment at their doorstep hassle free. It will also provide access to the unemployed youth to a rich repository of career content over 3000 of occupations across 52 sectors kept by the NCS data base.

5. The project will also create a nation-wide online platform for jobseekers and employers for job matching in a dynamic, efficient and responsive manner. The post offices would be charging nominal charges for the services as below:
New Job Registration : Rs. 15/-
Updation of Job seeker Profile : Rs. 5/-
Printout of Application Form, if Any : Rs. 10/-
5. It would be great opportunity and convenience to the unemployed youth of the county and a win-win situation to both the DoP and MoLE . The tie-up will also help the post offices in increasing its footfall, visibility and pave way to bring back the post offices to the mainstream offering relevant services to the citizen.

Memorandum to The Chf.Postmaster General

Invest in Sovereign Gold Bond Scheme at Post Offices - Banner

Guidelines for posting in POPSKs

Inauguration of new WCTC, Anantapur

Inauguration of new WCTC, Anantapur





Furnishing of Aadhaar mandatory for final settlement of Pension claims

Press Information Bureau 
Government of India
Ministry of Labour & Employment
02-March-2017 12:34 IST

Furnishing of Aadhaar mandatory for final settlement of Pension claims
The EPFO has clarified that obtaining of Aadhaar should be mandatory for the time being only for final settlement of Pension and not in withdrawl cases. The EPFO had extended the date of submission of Aadhaar Number authentication by the members of Employees’Pension Scheme 1995 upto 31st March 2017.

However, news item appearing in few dailies suggested that Aadhaar is not required in settlement of pension claims. Accordingly, the EPFO reiterated that the requirement of submitting Aadhaar is not insisted for the time being only in withdrawal benefit cases under Employees’ Pension Scheme, 1995. Furnishing of Aadhaar is still mandatory for final settlement of pension and scheme certificate cases.

Looking to open a PPF account? Here are 7 things to consider

By Sunil Dhawan, ECONOMICTIMES.COM 

Even after several decades, Public Provident Fund (PPF) Scheme, 1968 continues to be a favourite savings avenue for several investors. After all, the principal and the interest earned have a sovereign guarantee and the returns are tax-free. The principal invested qualifies for deduction under Section 80C of the Income Tax Act, 1961 and the interest earned is tax exempt under Section 10. 
With interest rates on taxable fixed income investments coming down, PPF remains a suitable alternative for allocating debt portion of one's investment portfolio. Allocation to equities through diversified equity mutual funds is equally important, especially when the goals are at least seven years away. 

In 1968-69, PPF offered a 4 per cent per annum interest (inflation was -1 per cent) and today it offers 8 per cent (inflation at 5 per cent), while from 1986-2000 it offered 12 per cent (inflation varied between 3.3 and 13.7 per cent). 

PPF is a 15-year scheme, which can be extended indefinitely in block of 5 years. It can be opened in a designated post office or a bank branch. It can also be opened online with few banks. One is allowed to transfer a PPF account from a post office to a bank or vice versa. A person of any age can open a PPF account. Even those with an EPF account can open a PPF account. 

One can deposit a maximum of 12 times in a year, but remember to deposit before the 5th of the month to get interest for the full month, as the interest is allowed on the lowest balance at the credit of an account from the close of the 5th day and the end of the month. Many investors deposit a lump sum amount right at the beginning of the financial year. There are provisions to take loans and make partial withdrawals from the scheme as well. 

With the tax-saving season on, many of us are looking to open a PPF account. Here are a few things to consider before opening one. 

Effective interest 
PPF is a debt-oriented asset class, i.e., one's investment is not exposed to equities and hence returns are not linked to the stock market performance. The interest rate on PPF returns are set by government every quarter based on the yield (return) of government securities. Currently, it offers 8 per cent interest per annum till March 31, 2017. 

As the interest is tax-free, the effective pre-tax yield for someone paying tax at 10.3 per cent, 20.6 per cent and 30.9 per cent rates will be 8.91 per cent, 10.07 per cent and 11.57 per cent per annum respectively. 

Deposit limit 
While the minimum annual amount required to keep the account active is Rs 500, the maximum amount that can be deposited in a financial year is Rs 1.5 lakh. One can open a PPF account in one's own name or on behalf of a minor of whom he is the guardian. This is the combined limit of self and minor account. 

If contributions are in excess of Rs 1.5 lakh in a year, the excess deposits will be treated as irregular and will neither carry any interest nor will this excess amount be eligible for tax benefit under Section 80C. This excess amount will be refunded to the subscriber without any interest. 

PPF in the name of minor 
A PPF account on behalf of a minor can be opened by either father or mother. Both the parents cannot open a separate account for the same minor. An individual may, therefore, open one PPF account on behalf of each minor of whom he is the guardian. 

At times, grandparents are interested in opening PPF for their grandchildren. PPF rules however, do not allow them to do so, when the parents of the minor are alive. They can open the account only if they are appointed as legal guardian after the death of the parents. 

Number of accounts 
An individual can open only one account in his name either in a post office or a bank and he has to declare this in the application form for opening the account. Persons having a PPF account in the bank cannot open another account in the post office and vice-versa. 

If two accounts are opened by the subscriber in his name by mistake, the second account will be treated as irregular account and will not carry any interest unless the two accounts are amalgamated. For this, one has to write to the Ministry of Finance (Department of Economic Affairs) and get its approval. 

Premature closure of PPF account 
Unlike in the past, when only loans and partial withdrawals were allowed, now even premature closure of the PPF account is possible. It will, however, be allowed only after the account has completed five financial years and on specific grounds such as treatment of serious ailment or life threatening disease of the account holder, spouse or dependent children or parents, on the production of supporting documents from the competent medical authority. 

If the amount is required for higher education of the account holder or the minor account holder then, on production of documents and fee bills in confirmation of admission in a recognised institute of higher education in India or abroad, premature closure of the PPF account is allowed. 

Nomination 
The application form of PPF (Form-A) does not carry the provisions for nominations as it is to be filled in a separate form. Make sure to fill the nomination form (Form-E) at the time of opening a PPF account to avoid any legal hassles for the nominee later on. 

Attachment 
The PPF account and its balance cannot be attached by a court and hence the debtors cannot access one's PPF account to claim the dues, if any. However, it does not apply to the income tax authorities and so the amount standing to the credit of subscriber in the PPF account is liable to attachment under any order of income tax authorities with respect to debt or liability incurred by the subscriber. 

Conclusion 
PPF suits those investors who do not want volatility in returns akin to equity asset class. However, for long-term goals and especially when the inflation-adjusted target amount is high, it is better to take equity exposure, preferably through equity mutual funds, including ELSS tax saving funds. 

Comparing them, however, is not warranted as both are different asset classes, with one generating around 8 per cent returns as compared to the others around 12 per cent. The latter has a higher maturity corpus (with relatively more volatility) than the former (with relatively more volatility.) Diversifying one's savings in PPF and equities would serve the purpose rather than relying entirely on any one of them.
Source:-The Economic Times