Public Provident Fund

Eligibility

Any individuals can open only one account in his/her own account either in post office or bank
An individuals can also open one account on behalf of each minor or a person of unsound mind of whom he is the guardians
A Public Provident Fund account on behalf of minor can be opened by either father or mother. Both the parents can not open a separate account for the same minor .
Only one PPF account can be opened in one name.
If two PPF are opened by a subscriber in an individuals name by mistake the second account will be treated as irregular account and will closed and will not carry any interest or two accounts are amalgamated into one with the approval of Government of india.
NRI are not eligible to open an account under the Public Provident Fund.
If a resident who subsequently becomes NRI during the currency of the maturity period prescribed under PPF scheme may continue to subscriber to the fund till its maturity.
There is no bar in opening a PPF account by an illitrate customer.
Threre is no maximum limit of the age for a person to open a PPF account.
PPF account can not be open in joint name.

Deposit in the account:

Minimum Rs:500 thereafter deposit of any sum in multiple of Rs:50 and Maxximum Rs:150000 in one financial year.

Subscriber may nominate one or more persons to receive the standing to his/her credit in the event of his/her death
No nomination shall be made in respect of an account opened on behalf of the minor.

loan facility:

loan can be taken in the third financial year in which the account opened. The amount of loan will restricted to 25% of the balance including interest at the end of the first financial year.

Withdrawal:

Any time after the expiry of five years from end of the year in which the account was open. An amount not exceeding 50% of the amount that stood to his credit at the end of the fourth year.

Extension of the Account:

The account holder on the expiry of fifteen years from the end of the year in which the account was opened may extend his account and continue to make deposit for further block period of five years.
The option of extension of an account shall be made by the account holder before expiry of one year from the maturity of the account.

Premature closure of account:

An account holder shall be allowed premature closure of his/her account or the account of minor or a person of unsound mind.
treatment of life threatening disease of the account holder his/her spouse or depended children or parent on production of supporting documents and medical report.
Higher education of the account holder or depended children on production of supporting documents and fee receipt.
On change of residence status of the account holder.

Closure of Account:

Any time after the expiry of fifteen years from the end of the year in which the account was opened.