Understanding PPF Withdrawal

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Introduction The Public Provident Fund (PPF), introduced in 1968 by the National Savings Institute of the Ministry of Finance, is designed to encourage individuals to invest their savings and reap returns over time. PPF investments offer income tax benefits, allowing individuals to claim exemptions on the interest earned and build a financial cushion for their post-retirement needs.

The current interest rate on PPF is 7.1% per annum, determined by the Ministry of Finance. This interest is compounded annually and paid on March 31st. Upon maturity, which occurs 15 years from the account opening, individuals can withdraw funds from their PPF account.

In specific situations, after six years from the account opening, partial withdrawals are permitted. The withdrawal amount is limited to 50% of the total corpus in the fund at the end of the fourth year from the date of account activation.

For a detailed breakdown of PPF withdrawal rules based on duration, reasons, and withdrawal limits, refer to the table below – 

WithdrawalTimeGrounds For Withdrawal Amount
After the account maturesAfter 15 years from account openingAnyEntire Corpus 
Partial withdrawal of fundsAfter 6 years from account openingAny50% of the total available balance 
Premature closing of an accountAfter 5 years from account openingEducational, Medical Entire amount

Also Read: EPF or PF Withdrawal Rules

PPF Account Extension and Withdrawal Rules

PPF, or the Public Provident Fund, is a popular and preferred investment instrument in India that offers tax benefits and interest income. You can open a PPF account with either a bank or a post office, and invest up to Rs 1.5 lakh in a financial year. The tenure of a PPF account is 15 years, but you can extend it in blocks of 5 years for any number of times. You can also withdraw funds from your PPF account under certain conditions. Here are some of the PPF withdrawal rules and procedures that you should know:

  • Full withdrawal: You can withdraw the entire amount in your PPF account after it matures at the end of 15 years. To do so, you need to submit Form C along with your PPF passbook to the bank or post office where you have opened your account. You can also download Form C online1, get a printout, fill it up, and submit it to the respective bank or post office. To fill out Form C, you need to provide the following details:
    • PPF account number
    • Amount of withdrawal
    • Number of years lapsed from the initial investment
    • Mode of withdrawal, which is either DD or transfer to a bank account.
  • Partial withdrawal: You can withdraw up to 50% of the balance in your PPF account after the completion of 6 years from the date of opening. 
  • Premature closure: You can close your PPF account before its maturity only under certain special circumstances, such as higher education or medical treatment of yourself, spouse, children or dependent parents. You can do so after completing 5 years from the date of opening.
  • Extension: You can extend your PPF account beyond its maturity for any number of times, in blocks of 5 years each. You have two options for extension:
  • Without contribution: You can continue your PPF account without making any further deposits, and earn interest on the existing balance. You can withdraw any amount from your account once in a financial year, without any limit. To do so, you do not need to submit any form or document.
  • With contribution: You can continue your PPF account with regular deposits, and earn interest on the total balance. You can withdraw up to 60% of the balance at the beginning of each extension period, once in a financial year. To do so, you need to submit Form H within one year from the date of maturity of your account.

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