The question is important on account of wide misinterpretation by certain banks that account of minor can not be opened if the father and mother has also PPF account. The answer is yes . Rule 3 (1) of PPF Scheme 1968 states as under :
3. Limit of subscription:-
(1) Any individual may, on his own behalf or on behalf of a minor of whom he is the guardian, subscribe to the Public ProvidentFund (thereafter referred to as the fund) any amount not less than Rs. 500 and not more than Rs. 70,000 in a year.
The Rule is clear that an Individual can open an account on behalf of minor kid . Nowhere the restriction is put that if that individual has PPF account , then he /she can not open account for his/her minor son/daughter. Or either he or his minor son/daughter will have to open PPF but not both.
In fact , circular No. DGBA.CDD. H–7530/15.02.001/2009-10, dated 29-3-2010 was issued to attend this problem only . The paragraph 2 of the said circular states as under
2. Opening of an account for a minor:
(a) In view of complaints being received about non-opening of accounts for minor by some Agency banks, it is reiterated that as per Rule 3 (1) of PPF Scheme, 1968, an individual may, on his own behalf or on behalf of a minor, of whom he is the guardian, subscribe to the Public Provident Fund. Further it is reiterated that as clarified, vide Ministry of Finance letter F.7/34/88/-NS II dated November 17, 1989, either father or mother can open a PPF account on behalf of his/her minor child but not both.
(b) You are advised to reiterate these instructions to your branches operating the PPF Scheme.
Therefore , there is no doubt that in family of husband , wife, son and daughter each one can have one PPF account which means 4 accounts in a family of four.