PPF FAQs

No. A maximum of Rs.1.50 Lacs is allowed per assessee. This is because a minor is clubbed with a major assessee (parents).

The balance in such cases is payable to the legal heirs of the minor. The guardian is not entitled to the payment of the balance.

In case of death of a 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.

The investor can wish to extend the account without any fresh deposit and continue to earn interest. The investor can also continue making fresh investments within the same limits.

The investor needs to inform the Accounts Office of the same within one year of the maturity of the account.

The account will automatically get extended without fresh deposits. The investor will continue to earn interest.

No. A PPF account is not transferable from one individual to another. Also, the nominee cannot continue the account of a deceased subscriber in his/her own name.

From 7th financial year, partial withdrawl is allowed and so loan facility is not available.

The loan taken from PPF has to be returned within 36 months. The tenure of 36 months is calculated from the 1st day of the following month in which the loan is taken.

The rate of interest charged on loan taken by the subscriber of a PPF shall be 1.00% more than the prevailing interest on PPF.

Yes. The loan facility can be availed from the start of the 3rd financial year up to the 6th financial year. The amount of loan can’t exceed 25% of the balance at the end of the 2nd immediately preceding year.

A PPF account can be opened by either parent on behalf of their minor child. Only one PPF account can be opened in the name of the minor. It means, mother and father both cannot open PPF accounts on behalf of the same minor. The total contribution for the guardian from his/her account and the minor account cannot exceed the annual investment limit. 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.

No. Only one PPF account can be maintained by an individual, except an account that is opened on behalf of a minor.

No. The Power of Attorney can neither open the PPF account nor operate it on behalf of an account holder.

If a resident Indian becomes an NRI, he can continue to invest in PPF just like a resident individual. However, an NRI cannot extend his account beyond maturity. Furthermore, the investor can also prematurely close his/her PPF account.

The interest rate on PPF is reviewed by the Central Government on a quarterly basis. The current interest rate effective for the quarter January-March’23 is 7.10% per annum. Interest for a particular month is calculated on the lowest balance between the close of the 5th day and the end of the month.

Yes. After completion of 15 years, you can extend the tenure by a block of 5 years within one year from the date of maturity. The same can be done as many times.

A PPF account can be closed before maturity after completion of a minimum of 5 years if-

• The amount is required for treatment of serious ailment of account holder/spouse/dependent children or parents
• The amount is required for financing higher education of a child.
• Change in residency status of the account holder

In any case, the account holder will be subjected to a 1.00% less interest rate since the beginning.

Yes. Pre-mature partial withdrawal is allowed from the start of the 7th financial year. For example, if an account was opened in FY 2014-15, partial withdrawals can be made after 1st April’ 2020. Only one withdrawal is allowed per financial year.