Frequently Asked Questions on Public Provident Fund scheme or PPF Account

Anyone can open a PPF Account either through a post office or through a authorized bank. Visit any authorized bank or post office and submit a opening form with relevant documents.

There are banks like SBI and ICICI which also offers online facility for having a PPF account with them. Through this facility you can transfer money from a saving bank account to your public provident fund A/c online. For more information you can visit nearest SBI or ICICI Bank office.

Even though opening a PPF Account is easy, we tried to address certain frequently asked questions on public provident fund scheme or PPF account. We urge you to send your feedbacks and suggestions by writing comments in below given form.

Frequently Asked Questions on Public Provident Fund (PPF) Account

Can I maintain more than one public provident fund or PPF account under my name?

No, an individual can maintain only one public provident fund (PPF) account in his or her name, except an account that can be opened on behalf of a minor.

What is the eligibility for investing under PPF Scheme, 1968?

A PPF account can be opened in a post office or in any authorized bank like SBI or ICICI by a resident Indian Individuals. You can also open a PPF account on behalf of a minor.

In case of minor, either the father or mother can open the account. As joint holders are not allowed under this scheme both mother and father jointly can not open an account on behalf of a minor.

Non-Resident Indians are not eligible for investment in PPF account. However, if the Non resident Indian opened up his PPF account while being a resident in India and later on became a non-resident then he can continue investing in his Public Provident Fund Account and take all the benefits of this account.

What are the documents required to open a PPF Account?

The bank or post office will be asking you for following documents for opening up a public provident fund account;

  • Application in Form – A
  • Passport Size Photo
  • Copy Of PAN Card
  • Resident Proof like Voter ID, Passport or Electricity Bill

Can a Public Provident Fund or PPF Account be opened in the Name of Minor Son or Daughter?

Yes, a public provident fund account can be opened up either by mother or father on behalf of their minor Son or daughter; Frequently Asked Questions on Public Provident Fund however the mother or father jointly can not open public provident fund (PPF) accounts on behalf of the minor.

In case of death of both mother and father, grand parents can open a public provident fund (PPF) account as guardians of the Grand-child.

How many Public Provident Fund or PPF Accounts can be opened ?

One person can maintain only one PPF Account either in a Post Office or in any authorized bank. In case, any one maintains two PPF accounts then the second PPF account will be closed and the amount in that provident fund account will be refunded without interest.

But a person can open another PPF account on behalf of a minor and operate that account in addition to his own account.

What is the minimum and maximum amount that can be invested under the PPF Scheme, 1968, in a financial year?

The minimum deposit amount is Rs. 500 per annum and the maximum ceiling limit is Rs. 1, 50,000 per annum. Budget 2014 has introduced a new maximum limit of Rs.150000.

What will happen if I don’t pay subscription for a year?

A subscriber who fails to subscribe in any year according to the limits specified, may approach the Accounts Office for con-donation of the default, on payment, for each year of default, a fee of Rs 50 along with arrears subscription of Rs 500 for each year.

What is the Interest earned in Public Provident Fund (PPF) account?

The current compound annual interest rate on Public Provident Fund (PPF) is 8.7%.

When does a Public Provident Fund (PPF) account mature?

Your Public Provident Fund (PPF) account gets matured after the expiry of 15 years from the end of the year in which your account was opened.

Is there any flexibility of extending my public provident fund (PPF) account beyond maturity?

Yes, you can extend the tenure of your Public Provident Fund (PPF) account for a block period of 5 years beyond the maturity period.

Can I withdraw funds from my Public Provident Fund (PPF) Account?

Any time after the expiry of 5 years from the end of the year in which the initial subscription was made , you may, if he so desires, apply in Form C or as near thereto as possible, together with your pass book to the bank or post office withdrawing from the balance to his credit, an amount not exceeding 50% of the amount that stood to your credit at the end of the forth year immediately preceding the year of withdrawal or at the end of preceding year, whichever is lower, less the amount of loan, if any, drawn by him which remains to be repaid.

More than one withdrawal shall be permissible during any one year.

Also Read: How to withdraw from your PPF Account

Can I close my Public Provident Fund (PPF) account before maturity?

No, except in the case of your death, your nominee /legal heir can close the account by submitting the required documents.

Also Read: How to get paid from your PPF Account on death of subscriber

Can I avail of Loan facility on my Public Provident Fund (PPF) investment?

Yes, as per the terms and conditions of such public provident fund for details Please read our article to know the procedure of getting loan from PPF Account

I lost my passbook; can the bank or post office issue me a duplicate passbook?

In the event of loss or destruction of a pass book issued by a bank or Accounts Office of a post office, the bank or Accounts Office may, on an application made to it in this behalf, and on payment of required fee by the subscriber, issue a duplicate thereof to him.

How interest on Public provident fund or PPF is calculated?

Interest at the rate, notified by the Central Government in official gazette from time to time, shall be allowed for calendar month on the lowest balance at credit of an account between the close of the fifth day and the end of the month and shall be credited to the account at the end of each year. Provided that where the interest to be credited contains a part of a rupee then, if such part is fifty paisa or more, it shall be increased to one complete rupee, and if such part is less than fifty paisa, it shall be ignored.

We have tried to answer all the frequently asked questions on public provident fund scheme. If you still have any questions then please let us know. We will try to answer that in our next update.

Editorial Staff at Yourfinancebook is a team of finance professionals. The team has more than a decade experience in taxation and personal finance.

Reader Comments

  1. Manoj

    I have PPF Account in my name and My Daughter name. Can I deposit 1.5 lakh in each acount. and take rebate of only 1.5 lakh under 80C.

    1. YFB

      you can deposit but benefit under section 80C can be taken up to Rs 150000 for one account.

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