PPF Rules for Partial Withdrawal

PPF Partial Withdrawal

Public Provident Fund (PPF) is an investment scheme primarily beneficial for working employees and companies. It is popular among individuals for long-term investments where the person wishes to receive a high-interest rate over the investments. Investing the PPF account is for primarily saving the principal amount.

PPF account is opened for long term savings & investments but some of the amounts can be withdrawn in certain situations. The government provides some provision with terms and conditions where the investor can withdraw the amount which is termed as premature closure.


Now let us discuss the rules for PPF withdrawal:


The investor can wish to withdraw the amount from the funds before completion of the maturity period i.e. of 15 years in normal terms. In some condition, the PPF account holder may request for partial withdrawal or for premature closure.


The account holder can withdraw the partial sum of the amount from the PPF account only after the completion of 5 years from the date when the account was opened. 


The Public Provident Fund scheme also allows one-time withdrawal on every consecutive year after completion of 7 years terms. However, the amount withdrawn will be lower than the following:


  • 50 % of the total balance available at the end of the fourth financial year.

  • 50% of the balance of the preceding year


Terms & Conditions for premature closure of the account


Provident Fund account can be closed before reaching the maturity period. After completing 5 Years terms from the date of opening the account, the PPF account can be closed on a condition of 1% interest deduction. 1 % interest amount will be deducted counting from the date of account opening.


As per PPF rule, a person may wish to close his PPF account in the below-written situations:

  • If the account holder needs the amount for the treatment of serious or life-threatening diseases. The amount can be used for the treatment of the account holder himself, his spouse, his children or parents. For the closure, the person needs to submit the documents authorizing the disease from the medical authority. 

  • In case, the account holder needs the amount for his/her higher education in India & abroad. He/she need to submit the verifying documents issued from the recognized institution or university with all fee bills & expenditure records.


Although it is beneficial for the account holder to keep the amount safe till retirement, as PPF account provides some beneficiary pension schemes also. But in certain cases, the government has the provision for premature closure or partial withdrawal. During this corona pandemic also, the government has revised some scheme regarding the partial withdrawal. The account holder can also withdraw the amount in the context of the pandemic.


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