• Regarding claim of ppf on death of account holder

I have some query regarding PPF, my brother(aged 30) has died and nominee for his ppf account is my mother, but there is around 1 lakh due on his credit card and bank has lean marked his savings account in lieu of credit card dues . PPF account is in the same bank. So if we withdraw the money it will go in his savings account and it will be deducted by them for credit card dues. So is there any rule in PPF which says they cant deduct that money from PPF and it should go directly to the nominee. Please help. PPF amount is around 67,000.If there is any such rule please direct me to it so that i can provide the same to the bank
Asked 4 years ago in Taxation

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8 Answers


In most of the cases, the ppf account is linked with other account and if it is same for you also, you may have problem in withdrawal from PPF account. in other case, there would be no problem.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

Any loans or interests on loans to be repaid by the subscriber will be deducted before the credit is transferred to appropriate person

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

According to the PPF Act 1968, "The amount standing to the credit of any subscriber in the fund shall not be liable to attachment under any decree or order of any court in respect of any debtor liability incurred by the subscriber."

2) on demise of your brother money shall be paid to the nominee

Ajay Sethi
Advocate, Mumbai
87932 Answers
6207 Consultations

5.0 on 5.0

Sir the PPF account cannot be attached though further the legal heir or nominee that is mother she will be liable to pay his credit card bill as the bank can proceed against her to recover the dues.So the amount can be taken from bank but the bank can then proceed to recover the credit care debt from mother

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0


Sorry but it's a rule that nominee received PPF money after payment of

loans and liability.

To claim PPF amount fist fill Form G

Tarun Agarwal
Advocate, Jaipur
769 Answers
3 Consultations

4.9 on 5.0


No there is no such rule. Rather from such amount the legal heirs are required to give the loan and other outstanding first.


Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

there is no such rule

the money lying to the credit of the PPF account has to be released to the nominee

the bank cannot mix the credit card dues with the PPF account

the bank can take legal action against the legal heirs of your brother for recovering the credit card dues with applicable interest

this legal action is separate and independent

the PPF money cannot be set off against the credit card dues

in the alternative i suggest the nominee, with consent of legal heirs of deceased brother, settle the credit card dues by asking the bank for a one time settlement amount which can be adjusted against the PPF money and balance can be released to nominee

Yusuf Rampurawala
Advocate, Mumbai
6881 Answers
79 Consultations

5.0 on 5.0

Who said that the PPF amount will go to the savings bank account of the deceased employee.

The terminal benefits will be settled to the nominee only and not to the bank.

The bank cannot ask the employer to stop disbursement of the terminal benefits.

The credit card loan amounts are of personal loan nature hence there is no collateral required for it except for the salary deductions.

The bank cannot even ask for lien on the terminal benefits.

You can ask the employer to settle the terminal benefits to the nominee directly, which is the governing law in this regard, the employer cannot deny this request, because he is obliged to settle the amount to the nominee only and not to the bank.

T Kalaiselvan
Advocate, Vellore
78089 Answers
1543 Consultations

5.0 on 5.0

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