PPF Premature Withdrawal Last Updated : 25 Feb 2020

Premature withdrawal from PPF is not permitted if the grounds for the claim are general, something like, loan repayment, marriage, education etc. However, in case of withdrawals after the death of the subscriber Form G needs to be filled up.

Your PPF premature withdrawal application will be rejected if the grounds for the claim are relatively trivial. Some common rejections are:

  • Loan repayment
  • Education
  • Purchasing house/vehicle
  • Retiring/suspension from job
  • Migration abroad
  • Marriage etc.

All requests for premature withdrawal pass through the Ministry of Finance, and so are scrutinized thoroughly.

Premature withdrawal process

For making a PPF claim on death of a subscriber, you need to fill up Form G. This form is available for nominees or legal heirs to enable them to claim the proceeds from an account. Legal heirs can claim proceeds if the credit in the account is less than Rs.1 lakh by simply filling up Form G along with the associated annexures, namely letter of indemnity, affidavit and letter of disclaimer. For higher amounts, you need to produce a succession certificate or attested will. Apart from the form, you also need to submit some other documents like death certificate, passbook etc.

Partial withdrawal

Though a full premature withdrawal from PPF is not possible under normal circumstances, you can still opt for partial withdrawal. Such withdrawals are permitted after the expiry of 5 years from the end of year when subscription was made.

For instance, an account opened in December 2009 (FY 2009-10) will be eligible for partial withdrawals from 1st April 2015 (FY 2015-16).

Only one withdrawal can be made per year. You can withdraw up to 50% of account balance at the end of 4th year immediately preceding the year when withdrawal request is made, or balance on last year, whichever is lower. As per the above example,

Withdrawal request made on 1st April 2015 (FY 2015-16) will pay you 50% of balance as of 31st March 2012 (FY 2011-12) or 31st March 2015 (FY 2014-15), whichever is lower.

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