New Delhi: In December last year, the government had amended some few rules related to the popular small savings scheme PPF or public provident fund.
Now, the Department of Posts has also changed the procedural rules.
“The Public Provident Fund scheme is a statutory scheme of the central government framed under provisions of PPF Act 1968. This Act was repealed through chapter VIII of Finance Act 2018 and now this scheme is governed by Government Savings Promotion Act 1873 (amended from time time) and public Provident Funds Scheme Rules 2019,” Department of Posts said in a recent circular.
Here are five things to know about new PPF rules:
PPF Accounts: One individual can have only one PPF account and one PPF minor account. The PPF minor account can be opened by either of the parents and in case of a specially-abled child, a guardian can open a PPF minor account even though the mentally challenged child is an adult.
that you must know
PPF Investment: A PPF account holder can invest a minimum of Rs 500 to a maximum of Rs 1.5 lakh per annum. The upper limit is inclusive of all other PPF accounts opened by an individual means the net investment by an individual in one’s PPF account and PPF Minor accounts should not go beyond Rs 1.5 lakh in a year.
PPF Account Closure: In case of a change in one’s residential address, premature PPF account closure is allowed but not before five years of the PPF account.
Emergency Fund: In the case of any debt-default by the PPF account holder, the PPF account can’t be attached against any court decree. So, your PPF balance can be an emergency fund in the case of such financial default.
PPF Account Revival: PPF account can be revived during the maturity period through the payment of Rs 50 and Rs 500 arrears for each year of PPF investment default.