Whoever said wishes don’t come true hasn’t explored our offers!
  • Public Provident Fund Withdrawal Rules and Process

    The Public Provident Fund (PPF) Scheme has very strict and specific rules set down in relation to when an amount can be withdrawn from the account.

    The PPF account can only be fully withdrawn from on maturity (15 years) from the date of creation. In cases of financial emergency, the subscriber can opt for partial withdrawals in order to meet emergency expenses. These withdrawals are subject to certain rules.

    When can partial withdrawals begin?

    • Partial withdrawals can be made, from the start of the 7th financial year after the account has been created.

    It is important to keep in mind that the timeframe taken into consideration is “financial year” which is from the 1st of April – to the 31st of March the next year.

    For example, if Mr. A has created a PPF account in January 2010, he will only be able to withdraw from his account from the 1st of April 2015.

    Mr. A’s PPF account was opened in January 2010, which means that it was opened in the financial year 2009 – 2010. The number of financial years, counted from when he opened the account will be as follows:

    • Year 1: April 2009 – March 2010 (Account opened within this timeframe – in January 2010).
    • Year 2: April 2010 – March 2011.
    • Year 3: April 2011 – March 2012.
    • Year 4: April 2012 – March 2013.
    • Year 5: April 2013 – March 2014.
    • Year 6: April 2014 – March 2015.
    • Year 7: April 2015 – April 2016 (Mr. A can begin withdrawing from his PPF account from this date).

    How many partial withdrawals are allowed per financial year, starting from the 7th financial year after the PPF account creation?

    • Only one partial withdrawal will be allowed every financial year (starting from the 7th financial year onwards).

    Considering the above example of Mr. A, he will only be able to withdraw from his PPF account once every year, starting from April 2015.

    How much of an amount can be withdrawn once a year, starting from the 7th financial year after PPF account creation?

    • The amount that can be withdrawn is equal to the lower of:
      • 50% of the account balance as at the end of the year immediately preceding the current year, or,
      • 50% of the account balance as at the end of the 4th year, immediately preceding the current year.

    As in the above example with Mr. A:

    • Year 1: April 2009 – March 2010 (Account opened within this timeframe – in January 2010).
    • Year 2: April 2010 – March 2011.
    • Year 3: April 2011 – March 2012 (This is the 4th year immediately preceeding the year in which withdrawals are possible, assuming Mr. A opted for withdrawal option as soon as he legally could. Mr. A can withdraw an amount equal to 50% of this amount if it is lower than that of “Year 6”).
    • Year 4: April 2012 – March 2013.
    • Year 5: April 2013 – March 2014.
    • Year 6: April 2014 – March 2015 (This is the year immediately preceding the year in which withdrawals are possible, assuming Mr. A opted for the withdrawal option as soon as he legally could. Mr. A can withdraw an amount equal to 50% of this amount, if it is lower than that of “Year 3”).
    • Year 7: April 2015 – April 2016 (Mr. A can begin withdrawing from his PPF account from this date).

    What is the PPF maturity duration?

    • The PPF account attains maturity in 15 years from the date on which it was created.

    Is it possible to prematurely close a PPF account?

    • No, a PPF account cannot be prematurely closed for any reason except the death of the account holder.

    Got something to say? Go on, you can say it; we don't bite. In fact, the more said, the better. The only thing we ask is that you keep it squeaky clean and follow our posting guidelines. Do not disclose sensitive information like your bank account details or phone number (or home planet). Comments posted on the BankBazaar site are not reviewed or endorsed by representatives of financial institutions affiliated with the reviewed products, unless explicitly stated otherwise.

  • reTH65gcmBgCJ7k - pingdom check string.
    reTH65gcmBgCJ7k - pingdom check string.
    This Page is BLOCKED as it is using Iframes.