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How to open PPF (Public Provident Fund) account?

To open PPF account, one need to fill up PPF Account Opening Form - 'A' and submit at any nearest authorised Bank Branch / Post Office along with the required KYC documents.

Who can open a PPF account?

A PPF account can be opened by resident individuals and individuals on behalf of minors.

Who can not open a PPF account?

A Non Resident Indian (NRI) and Hindu Undivided Family (HUF) cannot open an account under the scheme.

Can I maintain more than one PPF account under my name?

Only one PPF account can be maintained by an individual, except an account that is opened on behalf of a minor.

Can a PPF account be opened in the name of a minor?

Yes. A PPF account can be opened either by the Mother or Father on behalf of their minor Son or Daughter. However, the Mother and Father both cannot open PPF accounts on behalf of the same minor.

Can grand-parents open PPF account on behalf of minor grand-child?

Grand-parents cannot open a PPF account on behalf of minor grand-child. However, in case of death of both the Father and Mother, grand-parents can open a PPF account as guardians of the grand-child.

What will happen in the event of the death of a guardian, in relation to a minor?

In case of death of guardian, the account of minor remains operative and a new account need not be opened. The surviving natural guardian or a guardian appointed by a competent court may continue the account of minor after producing the necessary guardianship certificate.

In the event of the death of the minor subscriber is the balance in the account payable to the guardian?

No, the guardian is not entitled to the payment of the balance. The balance in such cases is payable to the legal heirs of the minor in accordance with Section 8 of Public Provident Fund Act and para 12(6)(ii) of the Public Provident Fund Scheme.

Can a PPF account be transferred from one individual to another?

A PPF account is not transferable from one individual to another, as such the nominee cannot continue the account of a deceased subscriber in his own name.

Is nomination facility available under the scheme?

The PPF scheme facilitates nominations of one or more persons to receive the amount standing to the subscriber's credit in case of death. However, no nomination is allowed in case of minor account.

How is the repayment done after the death of the subscriber?

If a subscriber to an account in respect of which nomination is in force dies, the nominee or nominees may make an application in Form- 'G' to the Bank together with the proof of death of the subscriber and on receipt of such application all amounts standing to the credit of the subscriber after making adjustment, if any in respect of interest on loans taken by the subscriber shall be repaid by the Bank itself to the nominee or nominees. If the nominee is dead, the surviving nominee or nominees shall, in addition to the proof of death of the subscriber, also furnish proof of the death of the deceased nominee. Where there is NO nomination in force at the time of death of the subscriber, the amount standing to the credit of the deceased after making adjustment, if any, in respect of interest on loans taken by the subscriber, shall be repaid by the Bank to the legal heirs of the deceased on receipt of application in Form- 'G' in this behalf from them. If the credit balance standing in the account is upto Rs.1 lakh, the same may be paid to his/her legal heirs on production of : a). A letter of indemnity. b). An affidavit c). A letter of disclaimer on affidavit, and d). A certificate of death of subscriber, on stamped paper.

Does the PPF account earn interest after the death of the subscriber?

On the death of the subscriber, the balance in PPF account does not cease to earn interest. The interest is admissible till the end of the month preceding the month in which payment of the deposits is made to the nominee / legal heirs.

Can there be a change in nominations?

Yes, changes to previous nomination(s) are possible by applying a fresh nimination(s) in Form 'F'.

Can a change in name of female subscriber on account of marriage possible?

In the event of her marriage, a female subscriber may request for change in surname by submitting documentary evidence of the same.

Can the PPF account be transferred from a Bank/Post Office to another Bank/Post Office?

 Yes, as per the PPF scheme of the Government, subscribers can transfer their PPF account from one authorised bank or Post office to another authorised bank or Post office. In such a case, the PPF account will be considered as a continuing account.

Will the account number of PPF get changed when transferred from a Bank/Post Office to another Bank/Post Office happens?

Yes, the transfer entails closing the account at the existing location and opening a new one. In such case new account number will be issue to the subscriber.

Is there any charge on transferring PPF account from a Bank/Post Office to another Bank/Post Office?

No. There is no charge on transfer of PPF account from a Bank/Post Office to another Bank/Post office.

When does a PPF account mature?

A PPF account gets matured after the completion of 15 years from the end of the financial year in which the account was opened.

Can I terminate or close the PPF account before maturity?

No premature closure is allowed for PPF accounts.

Can I extend the tenure of a PPF investment beyond the Maturity Period?

An investor can extend the tenure of a PPF investment for a block of 5 years beyond the maturity period by submitting Form- 'H' within one year from the date of maturity.

Can a PPF account Continue without Deposits after Maturity?

A subscriber can retain his / her PPF account after maturity without making any further deposits. The balance will continue to earn interest. The subscriber can make one withdrawal of any amount in each financial year.

What is the minimum and maximum amount that can be invested under the PPF?

The minimum deposit amount is Rs. 500/- per annum and the upper ceiling limit is Rs. 1,50,000/- per annum. The upper ceiling limit is decided by the Central Government from time to time.

When is a PPF account treated as discontinued?

If an investor fails to deposit the minimum amount of Rs. 500/- in any financial year, the account will be treated as discontinued.

How can a Discontinued Account be revived?

The investor may revive the discontinued account by payment of Rs. 50/- for each year of default along with arrear subscription of Rs. 500/- for each ear.

What is number of installment for deposit under PPF scheme allowed in a particular financial year?

The deposit into an account can be made in a single lump sum or in instalments not exceeding twelve in a financial year.

What is the interest earned in PPF account?

The current rate of interest on PPF is 8.70%, which is compounded annually. Interest rate on PPF is governed by the Central Government from time to time.

What are the tax benefits from PPF investment?

The invested amount is eligible for deduction under the Rs. 1,50,000/- limit of Section 80C. On maturity, the entire amount including the interest is non-taxable.

Can I contribute to the PPF account of my parent’s and claim section 80C tax benefit? 

No, you’re not allowed to claim tax benefits on the contribution made by you in the PPF account of your mother or father.

Can I avail of Loan facility on my PPF invstment?

Yes, loan facility can be availed between third to sixth financial year. The amount of loan can't exceed 25% of the balance at the end of 2nd immediately preceding year.

Is Partial Withdrawal allowed from the PPF account?

"Anytime after the expiry of five years from the end of the financial year in which the initial subscription was made, you can withdraw upto 50% of the balance that stood to your credit at the end of the 4th financial year immediately preceding the year of withdrawal or at the end of the preceding financial year, whichever is lower, less the loan amount (if any). Only one withdrawal is allowed per financial year. "

Whan can I start making partial withdrawls / take loans from PPF account?

Loan facility is available from 3rd year to 6th year. From 7th year onward, you’re allowed to make partial withdrawals. Also note that once you become eligible for withdrawals, no loans are allowed. The basic difference between the two is that unlike withdrawal facility, loan carries interest and is to be repaid.

Is Partial Withdrawal allowed from a Minor's Account?

Withdrawals from a minor's account requires the guardian to furnish a certificate in the following form: "Certified that the amount sought to be withdrawn is required for the use of ______________ who is alive and is still a minor."

If a cheque deposited in PPF nearing to the end of the financial years, for e.g. on March 29, 2015 but clearance happens on April 1, 2015, in which financial year deduction can be claimed?

Here the claim can be made for the FY 2015-16. Earlier it was possible to claim as per the cheque deposited date, but from March 29, 2010 the rules has been changed. Now the date of realisation of cheque/draft will be deemed as the date of deposit of PPF.

Can the PPF account be attached?

Yes, the PPF account can be attached by the Income Tax and Estate Duty authorities. The PPF act only gives the account holder immunity against attachment under a decree / order of a court of law. That means PPF can’t be attached by any court.

If an NRI opened a PPF account while he/she was a resident India and subsequently, he/she moved out of India and got the status of NRI while the scheme is yet to mature. Now can the said NRI operate it and make further investments?

Yes, in such case an NRI can continue to make the deposits in the PPF account (which was opened while he/she was resident Indian) till the maturity but cannot extend the account.

From which account can an NRI invest in the PPF account?

An NRI can use the funds in the NRE account or the NRO account to make investments in the PPF account.