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Public Provident Fund

Public Provident Fund Scheme 2019

  • All our Branches are authorized to open PPF accounts.
  • An investor may contribute to his PPF account also through retail internet banking.
  • A resident Indian Individual can open PPF a/c.
  • HUF & NRI are not allowed to open PPF a/c. & no subscription is allowed even for older accounts.
  • PAN is mandatory.
  • Multiple accounts are not allowed either in Post Office or in Bank. Individuals can open additional account on behalf of each minor of whom he is the guardian. However, total subscriptions in all the accounts taken together including minor accounts should not exceed Rs.1,50,000/- in a financial year.
  • If two accounts are opened by the subscriber, the second account will be treated as irregular account unless the two accounts are merged into one accounts with the approval of Government of India.
  • Joint account cannot be opened.
  • Deposit can be made through Cash/ Clearing/ Transfer or through internet banking mode.
  • Deposits can be made in one lump sum or in installments.
  • Subscription can be min. Rs.500/- and in multiples of Rs. 50/- subject to maximum. Rs.150000/- in a F.Y.
  • If no deposit is made, then the account becomes irregular and it can be regularized by paying Rs. 500/- and a penalty of Rs.50/- for each year of default.
  • Rate of Interest is decided by GoI on quarterly basis and paid annually & credited on 31st march of every year.
  • Interest in PPF a/c. is paid on the minimum balance between 5th day of the month and last day of the month.
  • Withdrawal (only one) during a year can be made after the expiry of 5 years from the end of the year in which initial subscription is made and account should not become discontinued. The amount of withdrawal is limited to 50% of the balance to the credit at the end of the 4th year immediately preceding the year of withdrawal or at the end of the preceding year whichever is lower.
  • In the case of death of the subscriber, the amount can be repaid to his nominee or legal heir before the expiry of 15 years.
  • Premature closure is allowed for treatment of serious ailments or life threating diseases of account holder, spouse, dependent children or parents on production of supporting documents from medical authority.
  • It is also allowed in case of requirement for higher education of account holder or dependent children on production of documents & fee bills for confirmation of admission in higher education in a recognised institute.
  • Premature closure is allowed only after five financial years after the date of account opening
  • Such premature closure is subject to one percent lower interest than the rate at which interest has been credited in the account from time to time since the date of opening of the account or the date of extension of account.
  • Account matures on fifteen (15) complete financial years from the end of the financial year in which account is opened.
  • Account can be extended after maturity for any number of block period of 5 years.
  • Account can be retained indefinitely without further deposit after maturity with prevailing rate of interest.
  • Extension of account can be done within one year from date of maturity.
  • Nomination can be done in favour of one or more subjection 4 individuals.
  • Tax benefits under section 80 (C) for the subscription made during the Financial year.
  • Interest earned and maturity amount is also tax free.
  • The account may be transferred anywhere in India & from Bank/ Post Office to other Bank/ Post office.
  • Loan facility is also available from the 3rd year of opening of account but not after the end of 5th year.
  • If a resident Indian who opened an account under this scheme, subsequently becomes a non-Resident during the currency of the maturity period, the account can be prematurely closed on production of copy of passport and visa or Income Tax Return (the rule shall not apply for the PPF account opened before 12th December 2019). Interest in the account shall be lower by one per cent than the rate at which interest has been credited in the account from time to time since the date of opening of the account, or the date of extension of the account, as the case may be.
  • For further details please refer to Government of India Notification G.S.R. 915 (E) dated 12th December 2019.