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Public Provident Fund (PPF)

  • The Scheme is for 15 years. Extension of 5 years for any number of times
  • Public Provident Fund Interest Rate is fixed Quarterly by Government of India.
  • Account can be opened by an individual or a minor through the guardian.
  • Joint account is not permissible.
  • NRI and HUF are NOT eligible to open PPF A/c.
  • The minimum deposit is 500/- in each financial year and maximum is Rs. 1,50,000/- in a financial year.
  • The deposit can be either in lump sum or in instalment.
  • The discontinued account can be activated by payment of minimum deposit of Rs. 500/- with penalty of Rs.50/- for each defaulted FY.
  • The deposits shall be in multiple of Rs.100/- subject to minimum amount of Rs.500/-
  • The deposit in a minor account is clubbed with the deposit of the account of the Guardian for the limit of Rs.1,50,000/-
  • Initial deposit amount for the opening of PPF account is mandatory.
  • Nomination facility is available.
  • Account opening with nomination is mandatory.
  • Maximum number of nominees in PPF account are now 4.
  • PPF cannot be attached by any Court.
  • Withdrawal facility of one per annum for any amount within the balance on the maturity date, if PPF account is continued without any deposit after maturity for any period.
  • Pre mature closure of PPF account, when there is request for higher education of dependent children in addition to self and minor depositor.
  • Pre mature closure of PPF account, when there is a change in residency status of the account holder.
  • There is a lock-in period of 15 years and the money can be withdrawn in whole after its maturity period. However, pre-mature withdrawals can be made from the end of the sixth financial year from when the commenced. The maximum amount that can be withdrawn pre-maturely is equal to 50% of the amount that stood in the account at the end of 4th year preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.
  • According to Public Provident Fund Scheme 2019, the facility of loan against the PPF deposits is available from 3rd to 6th year of deposit to the extent of 25 % of the amount deposited as at the end of the last financial year. The loan is repayable in 36 months.
  • A subscriber is allowed for premature closure. (GoI notification dated 12th December, 2019)
  • Account holder on death of the account holder cannot continue the account, but account has to be closed
  • The account holder can retain the account after maturity for any period without making any further deposits. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account is closed.
  • Account is transferable from one Post office to another and from Post office to Bank and from Bank to Post office Deposits in PPF qualify for rebate under section 80C of Income Tax Act and interest on deposits is totally tax free.
  • Now PAN or Form 60 is mandatory for account opening.
  • Can be opened at Bank’s all branches.
  • For further clarification, please refer to Government notification G.S.R 916 (E) dated 12th December 2019.