Spooked by the stock market freefall, businessman Varun Agarwal decided to park a part of his savings in the government-managed Public Provident Fund (PPF).

He went to the Ganesh Chandra Avenue branch of the SBI last week to open a PPF account, only to be told that he would have to open a savings account, too.

Agarwal, who lives in Ganesh Chandra Avenue, next went to the CR Avenue branch of Punjab National Bank. “I was told that the bank did not have the PPF facility any longer,” said the 30-year-old motor parts dealer.

The Park Street post office solved his problem but he was surprised to learn — as were many others in the past couple of months — that opening a PPF account isn’t a hassle-free exercise anymore.

On paper, a PPF account can be opened with any public sector bank and the zonal post office headquarters. Over the years, the fund has been the cautious investor’s favourite savings option, offering guaranteed returns — the present rate of interest is eight per cent, compounded annually — and a tax rebate on the deposited amount. Officials of the SBI and Punjab National Bank said PPF accounts could still be opened in each of their branches, though none would admit that prospective customers were being forced to open savings accounts to be eligible for this facility.

But a source in the SBI admitted that there had been a change in policy. “A PPF account does not benefit the branch in any way. It only increases our workload. So we try to sell a savings account along with the PPF one,” he said.

Businessman Siddhartha Roy, who was turned away from the Colootola branch of the SBI, said it was unfair to thrust a savings account on someone who only wanted to deposit money in the PPF. “I already have two savings accounts. Why should I have one more?” he asked.

A senior official of the Central Avenue branch of Punjab National Bank told Metro that a “manpower shortage” had forced the bank not to accept new PPF depositors.

A spokesperson for the RBI said this was illegal. “If any bank branch declines to open an account, the customer should first lodge a complaint with the higher authorities of that bank. The next option is to approach the banking ombudsman appointed by the RBI.”