Interest 8.7% w.e.f
01.04.2013 (subject to change as per GOI/RBI directives) to be applied
This Scheme may be called the Public Provident Fund (Amendment)
It shall come into force on the 1st day of December
The Public Provident Fund scheme is a statutory scheme of the
Central Government framed under the provisions of the Public
Provident Fund Act, 1968.
(4) The account can be opened in any branch of the State Bank of
India or its Associates (except offices managed by single
officer/clerk) or in any Head Post Office or any selection grade
sub post office or in any of the nationalised banks.
(5) An individual can open a Public Provident Fund Account in his
own name. He can also open an additional account on behalf of a
minor of whom he is guardian. He can subscribe any amount in
multiples of Rs. 5/- of not less than Rs.500/- and not more than
Rs.1,00,000/- in a year in each of his account. A year for the
purpose of the Scheme means a financial year (1st April to 31st
March). The deposits in excess of Rs. 1,00,000 made during a
year will not carry any interest and will not be eligible for
(6) Those having General Provident Fund or Employees' Provident
Fund Account can also open a Public Provident Fund Account.
(7) An individual can open only one account in his/her name either
in Post office or in Bank. If two accounts are opened by the
subscriber in his/her name by mistake, the second account will be
treated as irregular and will not carry interest.
The subscriptions can be deposited in lumpsum or in convenient
installment of not more than 12 installments.
(9) It is not necessary to deposit subscription in every month of
the year. The amount of subscription can also be varied to suit
the convenience of the subscriber.
(10) The account can be transferred at the request of the
subscriber from one office of SBI or its Associates to Head Post
Office or vice versa.
(11) The account can be closed after completion of 15 full
financial years or the expiry of 15 years from the close of the
financial year in which the initial subscription was made. This
is, of course, optional and the subscriber can continue the
account even after the period of 15 years for any number of
further blocks of 5 years by exercising an option in form 'H'.
(12) A subscriber can take a loan from the fund in case of need.
The first loan can be taken in the third year of opening the
account i.e., if the account is opened during the year 1997-98,
the first loan can be taken during the year 1999-2000. The amount
of loan will be restricted to 25% of the balance including
interest for the year 1997-98 in the account as on 31.3.1998.
(13) A subscriber can make one withdrawal during any one year. The
first withdrawal can be made at any time after the expiry of 5
full financial years from the end of the year in which the initial
subscription was made (i.e. from the 7th year onwards). The amount
of withdrawal will be limited to 50% of the balance at credit at
the end of the 4th year immediately preceding the year in which
the amount is withdrawn or at the end of the preceding year
whichever is lower. For example, if the account is opened in
1993-94 and first withdrawal is made during 1999-2000 the amount
of withdrawal will be limited to 50% of the balance as on
31.03.1996 or 31.03.1999 whichever is lower, less the amount of
loan if any drawn and which remains to be re-paid. The amount of
withdrawal is not repayable. The balance as on 31.03.1996 or
31.03.1999 will include interest upto year 1995-1996 or 1998-1999
as case may be.
(14) A subscriber may nominate one or more persons to receive the
amount standing to his credit in the event of his death. No
nomination can, however, be made in respect of an account opened
on behalf of the minor. In the event of death of the subscriber,
the amount standing to his credit can be repaid to his nominee or
legal heir, as the case may be, even before the expiry of 15
(15) Subscriptions to Public Provident Fund qualify for deduction
from the taxable income of the subscriber for Income Tax purpose
like contributions to Provident Fund, Life Insurance, etc.
(16) The interest credited to the fund is totally exempt from
(17) The amount standing to the credit of the subscriber in the
fund is totally exempt from Wealth Tax.
(18) The Account Office (including office of SBI and its
Associates) can condone default in payment of subscriptions in the
PPF account by charging the prescribed fee along with arrears of
(19) The PPF account is not transferable from one person to
another. In the case of death of the subscriber the nominee cannot
continue the account of deceased subscriber.
(20) The PPF account cannot be opened in the joint names. Further
such account cannot be opened in the name of artificial / judicial
(21) The balance in the PPF account is not subject to attachment
under an order or decree of court in respect of any debt or other
liability (other than Income Tax / Estate duty liability of
If the subscriber dies and there is no nomination at the time of
death, the balance in the account, if it is upto one lakh, will be
paid by the Accounts Office to the legal heirs of the deceased on
receipt of application in Form G supported with necessary
documents without the production of succession certificate. If the
balance is more than one lakh, the production of Succession
certificate will be necessary.
(23) The account in which subscriptions are discontinued for any
reason, will be treated as discontinued account and cannot be
closed before maturity. The account will be closed only after
maturity and it will continue to earn interest till it is closed
after maturity. The facility of loan or withdrawal will not be
allowed from such an account.
The account can be regularized by remitting a penalty of
Rs.50/- per Financial Year and Rs.500/- per Financial Year
(minimum remittance for a Financial Year).
The penalty amount should be credited to Government of
India / Reserve Bank of India.
When the account is sought to be withdrawn from the minor's
account, the guardian should give the following certificate on
application for withdrawal.
" Certified that the amount sought to be withdrawn is
required for the use of ……………………...... Who is
alive and is still a minor."
(25) If the account is opened in the name of the minor and the
minor attains majority before the maturity of the account, the
ex-minor will himself continue the account thereafter. He will
submit a revised application form for opening the account to the
Accounts Office. His signature on the application form will be
attested by the guardian who opened the account of the minor or by
a respectable person known to the Branch.
(26) The ceiling on deposits as provided for by Central Government
from time to time, which is Rs.1,00,000/- in a financial year at
present, is both for individual self account and account(s) opened
on behalf of minor(s) of whom he is the guardian, taken together.