POST OFFICE PPF ACCOUNT SAILENT FEATURES

PUBLIC PROVIDENT FUND SCHEME 1968

 

1.    Account can be opened by an Adult or Guardian on behalf of minor. Only one account can be opened in the name of a person. Twelve deposits can be made in a financial year. The deposits can be accepted by cheque/cash (including outstation cheque). Minimum deposit in a financial year is Rs 500, and maximum is Rs 100,000/-.

With maturity period of 15 years from the closing of the financial year in which initial deposit was made.

      

       Note-

(i)   Amount can  be deposited in lum sum or in convenient installment.

(ii)  More than one installment can be deposited in a month.

    

Loan-

       Loan is admissible from the third year and before fifth year  from the end of the year in which initial subscription was made. Loan amount is limited to 25% of balance at the end of second year preceding the year in which the loan is applied for. Fresh laon is not allowed when previous loan or interest thereof is outstanding. Interest is charged at the rate of 2% per annum if principal amount is repaid with in 36 months, 6% interest will be charged on the outstanding loan after 36 months.

 Clarification- 

If the account opened in FY  08-09   

 The first loan can be taken in FY 10-11 and before 31.3.14

 

08-09           -      2     (2^th   yr immediately preceeding the yr)

09-10           -      1

10-11           -      applied for loan

 

Hence amount of loan will be limited to 25% balance as on 31.3.09.  

Withdrawals 

       A subscriber can make one withdrawal during any one year. A withdrawal is permissible from fifth financial year from the year of opening.

       Amount of withdrawal is limited to 50% of balance at the end of the fourth proceeding year less amount if outstanding loan or 50% of balance at the end of immediate proceeding year of withdrawal less amount of outstanding loan. If any whichever is less.

Clarification-

 

Fy in which withdrawal is applied for-            2014-15

 

*     If the account opened in FY          08-09 

 

08-09           -

09-10           -

10-11           -      4     (4^th   yr immediately preceeding the yr)

11-12           -      3

12-13           -      2

13-14           -      1     (preceeding year)

14-15           -      applied for withdrawal

 

Hence amount of withdrawal will be limited to 50% balance as on 31.3.11 or 31.3.14 which ever be lower.

  

VERY MOST IMPORTANT- IBB in case of PPF account is lowest balance between close of 5^th day and the last working day of the month.

PLEASE CONFIRM WITH POSB  MANUAL I