Frequently Asked Questions

about

PPF Account
By
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How to open a Public Provident fund account (PPF)?

For applying for PPF Provident Fund ( PPF ) scheme, 1968, a form is
required to be filled also enclosing ID proof and address proof along
with 3 photographs with post offices or designated banks like SBI,
ICICI Bank, Canara Bank and few more. You need to file application
form only at the branch where you intend to maintain the account.

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How many PPF can be opened by any individual?

Any individual can open only one PPF account however anyone can
also open an account on behalf of a minor.

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Who can open an account on behalf of minor child?

A Public Provident Fund (PPF) account for a minor child can be
opened either of the Parents i.e Mother or Father. Important to note
that both of them cannot open PPF account for the same minor
child. Grand-parents are not allowed to open a Public Provident
Fund (PPF) account on behalf of minor grand-child. Only

in case where both parents have died for a minor child, Grandparents may act as guardians of the Grand-child for opening PPF
account.

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Can an NRI open a PPF account?

The Non Resident Indians are not eligible to open an account under
the PPF Scheme. However Provided that if a resident who
subsequently becomes a Non Resident during the currency of the
maturity period prescribed under the PPF scheme may continue to
subscribe to the Fund till its maturity, on a Non Repatriation Basis.

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What is the minimum and maximum amount that may be

invested in PPF account?
Minimum amount is Rs. 500 and maximum amount is Rs. 100,000
in a financial year. This amount may be deposited in lump sum or
in max. in 12 installments

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Is it required to deposit any minimum amount every year in

a PPF account?
Yes, it is mandatory to deposit minimum Rs 500 in a financial year
failing which, a penalty of Rs. 50 will be levied per year of default.
What is the interest rate earned in PPF account?

The current rate of interest on PPF is 8.7% which is compounded

annually.

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What is the period of maturity for PPF account?

A PPF account get matured in the period of 15 years starting from
the end of year in which the account was opened. However, an
investor may extend the tenure of a Public Provident Fund (PPF)
investment for a block period of 5 years beyond the maturity period
by submitting Form H within one year from the date of maturity.

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Can I terminate or closed the Public Provident Fund (PPF)

account before maturity?
Premature withdrawal is not allowed from Public Provident Fund
(PPF) account. However in the case of death of account holder, The
account an be closed by his/her nominee or legal heir by
submission of required documents.

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Can I withdraw funds from my Public Provident Fund (PPF)

Account?
Yes, funds may be withdrawn from PPF account in following
scenarios:
After completion of 5 years from the end of the financial year in
which initial account was opened.

Withdrawals upto 50% of balance amount is allowed where

balance considered is the amount at the end of 4th year
immediately preceding year of withdrawal or amount at the
preceding year which ever is lower.
Only one withdrawal is allowed in one financial year.
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Can I avail of Loan facility on my Public Provident Fund

(PPF) investment?
Investor can avail of the loan facility between third financial year to
sixth financial year ie. from third financial year upto end of fifth
financial year.

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What is the process for transferring my existing Public

Provident Fund (PPF) account maintained from one
to another bank/post office?
Investors an anytime transfer their PPF account from existing bank
or Post office to another authorize bank of post office. Even after
such transfer, it will be considered as continuing account. An
investor may approach the bank or the Post office where his current
PPF account is held and makes an application for transfer of PPF
account to destination Bank's branch.
After receiving the application, the existing authorized bank/Post
office send all documents and details like certified copy of the
account, account opening form, specimen signature, nomination
form etc. to destination bank branch (where is required to be
shifted) at the address provided by the investor. The documents
also accompany a cheque/DD for the outstanding balance in your
PPF account as on date.
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Can I access my Public Provident Fund (PPF) account online?

Yes, now various banks like SBI, ICICI, IDBI also provide facility of
viewing account online. You may also transfer funds to PPF account
using net banking facility.

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Thank You
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