Dear Mr. Sreekanth Reddy,
I am retired 60+ year old. My PPF account was matured and I extended it up to 2019.
My residence status is NRI since 2011. After the PPF rule amendmenmt dated 3rd oct 2017, I was in India in the month of December 2017. During the visit I closed my PPF account in Bank of Baroda, Mumbai on 28-12-2017.
The Bank deducted interest earning from PPF account closure amount by reducing interest rate at 4%, effective from the date of my status change i.e. May-2011. The amount is in couple of Lacs Rs.
I happened to read your blog recently, after reading your reply to Mr. Khosla on forum, dated Feb. 4 and 11, I understood that the amendment dated 3rd Oct 2017 is effective from the date of issue of amendment and not retrofit from the date one becomes NRI.
My Question is:
1) Is bank is bound by the new rule to return my over deducted amount based on the amendment dated 8-1-2018 ?(link on your replay).
2) Am I eligible to claim over deducted amount based on PPF amendment dated 1-8-2018 ?
3) Will you please guide me How to process refund claim from the Bank ?
Thanking you.
Vasant
March 7, 2018.
3 Answers
Dear Vasant ji,
As per the latest notification, the Govt has temporarily kept the 'oct 3rd' notification on HOLD.
This is a policy flip-flop by the Govt.
The NRIs can continue with their PPF accounts.
As you have already closed the PPF a/c, let's not worry about the new notification.
However, you have every right to get the acutal PPf interest amount from 2011 till Sept 2017, as the Oct 2017 notification is not in retrospective in nature.
Suggest you to kindly approach your bank and make a request for the refund.
In case, they do not co-operate or do not provide right info, you may escalate this issue.
You may also approach banking Ombudsman.
Related article :
https://www.relakhs.com/latest-amendments-nsc-ppf-rules-nris/
Dear Mr. Sreekanth Reddy,
Just wanted to let you know that I received my full refund.
I appreciate your service to community and thank you for your input, excellent.
FYI, action to my resolve my refund request from the Bank Of Baroda, Goregaon (E) Mumbai, branch has been amazing.
Thank you again.
Vasant
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