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Summary: When a PPF account holder passes away, the account is closed and the balance is paid out to the nominee or legal heir. This guide walks you through the exact documents and steps needed to make a successful claim.
Death is inevitable, but financial preparedness doesn't have to be an afterthought. If you or a loved one holds a Public Provident Fund (PPF) account, it's worth knowing exactly what happens to that money when the account holder is no longer around, and how to ensure it reaches the right hands without unnecessary delays.
Public Provident Fund (PPF) is a popular scheme among investors as it offers tax benefits on contributions as well as withdrawals after the lock-in period. The PPF scheme currently offers a 7.1 per cent rate of interest, and this interest income is also non-taxable.
In the event of the account holder's death, the account will be closed, as neither the nominee nor the legal heir may continue it. The balance amount will continue to earn interest until it is claimed. However, any excess amount deposited into the account after the subscriber's death will not earn interest and will be returned to the claimant as is.
How to file a claim?
When there is a nominee
If a nominee exists, they must produce Form G, a death certificate and the account holder's passbook. Once the procedure is complete, the full balance will be credited to the nominee. If the subscriber had any loans against the PPF, repayment adjustments, including interest, will be made before the remaining balance is transferred.
When there is no nominee
If there is no nominee, the claim can be made by the legal heir. Along with Form G and the death certificate, the legal heir must submit a succession certificate or letters of administration, accompanied by an attested copy of the will. Notably, if the account balance is less than Rs 1 lakh, the legal heir can claim the amount even without a succession certificate.
This article was originally published on August 05, 2022, and last updated on April 29, 2026.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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