PPF Rules: Know Rules For Public Provident Fund Withdrawal & Interest Rate

PPF rules

Public Provident Fund Rules

If you are holding a PPF account, this is the right information for you. We have shared here all the PPF rules and regulations. All the latest rules regarding withdrawal, interest, and loans are given here. The public provident fund is a powerful tax saving investment scheme. The basic maturity period is fifteen years which can be extended later. Though you must be aware of the main key features of your PPF, there are many hidden rules. We have attempted to bring all these norms to know your knowledge. iepfbalance.in also updates PPF interest rate which is currently eight percent.

Any Indian citizen can open PPF bank account in the post office. Till now, the early withdrawals were not encouraged much with this scheme. However, the Finance Ministry has introduced new early withdrawal rules for Provident fund during last year. It is now possible to withdraw the amount from PPF account for major reasons like medical treatment and higher education. However, the premature withdrawals are allowed under certain conditions. Explore the PPF rules in details.

Public provident fund rules

PPF Interest Rates

Previously the interest rates on public provident fund were fixed on a yearly basis. From 2016, the rates are now revised on a quarterly basis. The prevailing rate is 8% from 1st January 2017 to 31st March 2017. The PPF rates are applicable every month. But the interest amount is credited at the end of the financial year.

PPF Rules For Withdrawal

Until now early withdrawals were not allowed under the scheme. The rules are no more same. You can now make a premature withdrawal after your PPF account is 5 years old. Remember, you still cannot withdraw before completing 5 years as per the new PPF rules as well. Basically, the locked-in period is 15 years. But from the beginning of the 6th year of your PPF account, you can withdraw 50% of the amount which is in your account at the end of the preceding year.

Also note, it is not compulsory to withdraw amount immediately after completion of fifteen years. If you extend the account you can keep the amount and earn interest. Also you can know your EPF balance status online from the official website. But since fifteen years are over, you can now withdraw PPF amount anytime you want.

PPF rules

Premature Account Closure PPF Rules

PPF account cannot be closed before fifteen years maturity period. It was permissible only in case of the account holder’s death. Now, from 2016 premature account closer is allowed for certain conditions. The premature closure is allowed if the amount is required for treatment of life-threatening diseases. The account gets automatically closed if the subscriber dies.

Loans on PPF Amount

Everyone knows we can get a loan on PPF amount but it is available only between third to sixth year of the PPF account. After the sixth year you cannot apply for the loan. As per PPF rules, you can get a second loan only after repayment of the first loan. The loan on PPF amount attracts a nominal interest of 2%. If your fail to repay the loan within 36 months, the interest will be charged at 6%.

Extending PPF Account

You can extend the maturity period after 15 years by submitting form H. Extension should be applied or within one year of the maturity. The PPF account can be further extended for five years. After extension you can withdraw 60% of the amount accumulated at the time of maturity once can we withdrawn can be in installment also (once in a year).

The biggest safety feature of the PPF is the courts can not interfere with it. As per the PPF rules, no one can claim the PPF amount of the defaulters. But if required, the government can recover the tax from the PPF amount of the tax evaders.

The PPF rules are quite friendly. They make this social security scheme a very convenient for the citizens. If you wish, you can transfer your PPF account from bank to post office and vice versa. Also, you can transfer the PPF account from one bank to another bank. It will not cost you anything to transfer your public provident fund account from one bank to another or to post office. Do remember us and stay updated on all the latest PPF and EPFO member portal information.


  1. Ravindernath Boggula

    Hello Sir, Iam an Private Security Guard,If present employer contract expires new contractor takes place,Now iam 58 Yrs of age my EPF pension scheme will continue or discontinue after 58 Yrs of age.
    Please confirm.



      I am working in a Private company, I have account in PPF from 2004, can i withdrawal for my Daughter Higher Education?

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