Steps for Closing a PPF Account Having an Active Loan
PPF Account Closure Procedure (With Outstanding Loan)
When a Public Provident Fund (PPF) account having an outstanding loan is to be closed, the loan account must first be settled and closed before proceeding with the closure of the PPF account. The following procedure should be followed:
Step 1: Loan Repayment Entry
The Counter Postal Assistant (PA) must initiate the loan repayment transaction using the CPDTM menu.
Step 2: Verification of Loan Repayment
The Supervisor must verify the loan repayment transaction in the CPDTM menu.
Step 3: Processing of Loan Account
After verification, the Supervisor should invoke the CLPR (PROCESS) menu to process the loan account.
Step 4: Interest Calculation and Posting
The CPC team must invoke HACINT. This process calculates the interest applicable to the loan account and posts the interest amount in the PPF loan account.
Step 5: Recovery of Loan Interest
The method of recovering loan interest depends on the status of the PPF account:
For Non-Matured PPF Accounts
The loan interest amount must be paid through the CPDTM menu.
For Matured PPF Accounts
The loan interest amount must be recovered through the CPWTM menu.
Step 6: Closure of Loan Account
Once the loan principal and interest have been fully recovered, the Counter PA must initiate the closure of the loan account using the HCAAC menu.
Step 7: Verification of Loan Account Closure
The Supervisor must verify the loan account closure transaction through the HCAAC menu.
Step 8: Closure of PPF Account
After successful closure of the loan account, the PPF account may be closed. For this stage, the standard procedure prescribed for PPF Account Closure Without Loan should be followed.
Summary of Menu Flow
CPDTM – Loan repayment entry by Counter PA.
CPDTM – Verification by Supervisor.
CLPR (PROCESS) – Processing of loan account by Supervisor.
HACINT – Interest calculation and posting by CPC team.
CPDTM / CPWTM – Recovery of loan interest based on account status.
HCAAC – Loan account closure by Counter PA.
HCAAC – Verification of loan account closure by Supervisor.
PPF Closure Process – Follow normal PPF closure procedure without loan.