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| Public Provident Fund(PPF) |
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 Name of the Scheme |
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Public Provident Fund Scheme-1968
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Tenure of the Scheme |
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It is a 15-YEAR Account (15 full complete Financial Years)
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Limit of Subscription |
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Amount not less than Rs.500/- and not more than Rs.1,50,000/- in a year in one lump sum or in installments not exceeding twelve in a year
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Rate of interest |
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8.00 % w.e.f. 01-10-2018 till 31-12-2018 - Compounded annually (as prescribed in the Official Gazette published by the GOI on a quarterly basis). Interest is paid on funds deposited before 5th of every month.
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Mode of holding |
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Any individual on his behalf or on behalf of a minor of whom he is Guardian or an association of persons or body of individuals can subscribe for PPF fund. NRIs and HUFs cannot open accounts under this scheme.
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Tax treatment |
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The entire amount deposited in to PPF during the financial year is treated as deductible Under Sec.80C of ITR Act.
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Transferability |
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Account can be transferred from one account office to another. (Inter Bank and intra Bank)
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Nomination facility |
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Nomination facility is available.
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Withdrawal facility |
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Withdrawals are non-repayable. A non-repayable partial withdrawal can be had once in a year from 7th financial year. 1st withdrawal can be made in 7th financial year, up to 50% of the balance held at his credit by the end of 3rd year or 6th year whichever is lower, less the amount of loan remain unpaid. Only one withdrawal is permitted in a year.
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Loan facility |
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First loan can be taken in 3rd financial year. If one takes loan in 3rd , 4th, 5th or 6th financial year, he can take loan up to 25% of the balance at his credit at the end of 1st or 2nd or 3rd or 4th year respectively. No loan can be taken in 7th financial year.
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Repayment of Loan and Interest |
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Repayable with in 36 months from the first day of the month following the month in which the loan is sanctioned. Repayment can be made in one or in two or more installments.
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Extension of account |
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Can be extended for a further period of 5 years at the option of the subscriber.
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Closure of account |
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- An account becomes matured for closure on the 1st day of the 17th financial year (1st April).
- The Govt. Notification G.S.R. No.1237(E) dated: 03.10.2017 on PPF account to be closed if holder becomes NRI was kept in abeyance by GoI vide Office Memorandum No. F.No.01/10/2016-NS, dated 23rd February 2018. Hence, until Ministry of Finance gives clarification, old PPF rules will continue and said GSR dated 03.10.2017 need not be considered.
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