Dear Sir,

Would you be kind enough to clarify a doubt regarding PPF account

"A customer who was maintaining a PPF account had died. The nominee of

the account had also died after the death of the PPF account holder.

Now the legal heirs of the PPF account holder has approached for

release of the amount to them. The amount due in the loan account is

more than 5 lakhs.

Now my doubt is as follows

As per the PPF scheme in case of death of account holder, amounts upto

one lakh can be released on taking indemnity etc. As far as amounts

above one lakh, legal representation is to be produced.

However as per the bank's policy regarding release of deceased assets

adopted by the bank as per IBA guidelines, amounts in deposit accounts,

without any limit can be released after taking indemnity etc.

The question is whether relying on the policy relating to release of

deceased assets, the amounts in PPF account can be released.

I request you to be kind enough to kindly advise me your views in the

abvoe matter.