1) issue a legal notice to your brother to fix date for completion of necessary bank formalities 

2) mention that since  you and your brother are joint nominees presence of both is necessary for completion of formalities for withdrawal of funds from PPF account 

1. Issue a common lawyer's notice to bank and brother asking him to join for withdrawal from bank in the alternative seek his consent for withdrawal of you share.
2. In case of no reply or negative reply, approach District Consumer Commission under new District Consumer Commission seeking direction to bank for allowing you to withdraw you share.
3. Proceedings are faster under new Consumer Protection Act, 2019.

i would like to see the so called bank rule as would be shown to you by the bank which requires both the nominees to come together and sign the withdrawal form

if one nominee who is entitled to 50% funds is present before the bank then it can safely release 50% to him and get a valid legal discharge 

the other 50% can remain with the bank until the elder brother comes and signs the required forms needed for release of his 50%

if all the nominees were to remain present for the withdrawal then no person would choose to have joint nominations

take for instance a scenario where one nominee is out of India, so would that mean that until he is present before the bank, the other joint nominee cannot claim his share?

the provision of joint nomination would be rendered otiose if what the bank has communicated to you, is required to be done

the bank has to show the specific rule which requires that in case of a joint nomination all the joint nominees are required to make a joint application for release 

to me, it sounds rubbish !

if your elder brother is ok to mediate then you must explore that rather than spending on litigation 

If there is any will of your parents then on that basis you can remove your 50 percent you can also file a suit and ask the court to give directions to bank

Obtain order from court. Apply for succession certificate if he not cooperating.  

As you rightly said, in the circumstances of your case, it is better to issue a legal notice through a competent lawyer calling upon your brother to complete the bank formalities on or before a set date. If there is no response, you have no option but file a suit at the proper court in consultation with your lawyer, making the bank too a defendant. You may file a petition simultaneously praying for an interim order directing the bank to deposit the PPF proceeds in court, in the meantime, till the suit is disposed of.

I’m sorry to hear about your loss and the difficulties you are facing with your elder brother. I can understand how frustrating and stressful this situation must be for you.

You can approach a lawyer and send him a legal notice. A suit can be filed in a court to get direction to the concerned PPF department to release your money and you are 100% entitled for your legally recoverable part.

You may contact us for further help.

PPF account continues to earn interest as per the terms even after the death of the accountholder until the amount is claimed.” In this case, the nominee or the legal heir of the subscriber can claim the PPF amount.

Was your deceased brother a bank employee?

If not then why should bank disburse the amount to the nominees"

If the PPF subscriber had registered a valid nomination, the nominee will be able to claim the proceeds from the account by simply filing the Form G, along with proof of death of the subscriber (death certificate).

\Upon receipt of application and documents from the nominee, if these are found to be in order, all amounts standing to the credit of the PPF account of the deceased subscriber will be repaid to the nominee by the bank or post office. Adjustments will be made according to interest on loans taken by the subscriber.

In fact the nominee in PPF is just a trustee.

All the nominee gets is the right of ownership in terms of an authority to collect the money on the death of the subscriber and retain the money as a trustee for the benefit of the persons who are entitled to it under the law.

In your brother's case also you and your brother are empowered to receive money on behalf of the legal heirs of your deceased brother and not to take the money yourself.

A legal heir can claim the proceeds of a PPF account even when a nomination has been made to someone else, by producing the succession certificate.

• A nominee is a person who receives the PPF amount on behalf of the legal heirs of the deceased account holder. The nominee does not have any right or ownership over the PPF amount, but only acts as a trustee or custodian of the money until it is distributed among the legal heirs as per the succession laws or the will of the deceased.
• If there are more than one nominee in a PPF account, they have to jointly apply for withdrawal of the PPF amount by submitting Form G along with the death certificate of the account holder and their identity proofs to the bank or post office where the account is held. The bank or post office will then issue a cheque or demand draft in favour of all the nominees, who have to endorse it jointly and deposit it in their joint account.
• Based on this information, it seems that you cannot withdraw your brother’s PPF amount without the cooperation of your elder brother, who is also a nominee. However, you can try to resolve this issue by taking the following steps:

• You can send a legal notice to your elder brother through a lawyer, requesting him to join you in applying for withdrawal of the PPF amount within a reasonable time period. You can also inform him that if he fails to do so, you will take legal action against him for breach of trust and causing you financial loss and mental harassment.
• You can also approach the bank or post office where your brother’s PPF account is held and explain your situation to them. You can request them to issue separate cheques or demand drafts for each nominee’s share of the PPF amount, instead of a single cheque or demand draft for both nominees. However, this may depend on their discretion and policy.
• You can also seek mediation or arbitration from a third party, such as a mutual friend, relative, or a professional mediator or arbitrator, who can help you and your elder brother reach an amicable settlement and avoid further litigation. You can find more information about mediation and arbitration services in India from this website.
• If none of the above steps work, you can file a civil suit against your elder brother in the appropriate court, seeking an injunction to restrain him from obstructing your right to withdraw your share of the PPF amount and a direction to him to cooperate with you in completing the necessary formalities. You can also claim damages for the loss and inconvenience caused by his conduct.