Saturday, February 4, 2012

Non-credit of cheque in PPF Account amounting to loss of interest for one month

As per PPF Act, the subscribers of PPF are entitled for interest on the balance amount between 5th and last working day. It implies that any amount deposited by the subscribers on or before 5th of the month would carry a interest for that particular month.

Earlier the date of deposit of the cheque in the post office or bank was considered the date of credit to the PPF account. However, Ministry of Finance, Govt. of India last year changed the criteria and the date of actual clearing was made the date of crediting the subscribers account. 

A customer has PPF account in Post Office at New Delhi and he deposited a cheque in the post office on 2nd April 2011. Due to lethargic attitude of the post office or may be a malafide intention, the cheque was presented late by the post office and the credit to the subscribers account was afforded on 7th April 2011 which means that the subscriber was denied interest for the period of April 2011 and this interest was amounting to Rs. 375/-. As per banking guidelines and even the supreme court ruling, the customers account are to be credited either on the same day or at best the next working day.

We advised the subscriber to take up the issue with the Postal Department through a complaint for which all help was extended even to the extent of drafting. A simple complaint directed at the concerned desk and one reminder ensured crediting of the account with value dating of 5th April 2011 instead of 7th April 2011 and all this took about two weeks time involving one complaint and a reminder through email only but directed to the concerned desk only. Post office also confirmed through an email rectifying the date of crediting the account.

Is it not simple? Why we should not use electronic technology for complaints which is totally free ensuring reaching at concerned desk immediately? Why should we pay for the lethargic attitude of the officials and staff no matter how small is the level? Is it not going to create sensitivity among the Government Departments? What you need is only the entitlements and a direction to reach concerned desk. Please ensure your rights are protected!!!!!!!!!!!


  1. I hv deposited cheque of Rs 45000 on 18/01/2014 in SBI PPF account and on enquiry on 30th Jan 2014 being told that cheque payments from other banks are not allowed in PPF. Please help where to write?

  2. You can complain to the nodal officer of the bank as bank cannot refuse the payment through cheque of other banks as far as it is drawn from your account which ever bank it is. The date of the credit to PPF will be the date of realisation of the cheque.