#

PPF Accounts

 
 
 
  • 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 Scheme is for 15 years. Extension of 5 years for any number of times

 
  • 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 deposits shall be in multiple of Rs.100/- subject to minimum amount of Rs.500/-
  • The discontinued account can be activated by payment of minimum deposit of Rs. 500/- with penalty of Rs.50/- for each defaulted FY.
  • 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.
 

Account opening with nomination is mandatory.

Maximum number of nominees in PPF account are now 4.

 
  • A subscriber is allowed for premature closure. (GoI notification dated 12th December, 2019)
  • Premature closure of PPF A/c is permissible for treatment of life threatening disease of the account holder, spouse or dependent children or parents on production of supporting medical reports from treating medical authority.
  • 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. The rule shall not apply for PPF A/c opened before 12/12/2019
  • There is a lock-in period of 15 years and the money can be withdrawn in whole after its maturity period.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 The maximum amount that can be withdrawn pre-maturely is equal to 50% of the amount that stood in the account at the end of 4th year preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.
 
  • PPF cannot be attached by any Court.
  • 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
  • on death of the account holder the 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