The deposit made under these rules shall bear interest
at the rate of eight percent per annum
from the date of deposit.
1.A PPF account can be opened by an individual in his
own name or on behalf of a minor of whom he is the guardian
or by the Karta of Hindu undivided family
(w.e.f. 22.7.1985) of which he is a member or behalf
of an association of persons (w .e. f. 23.6.1986) or a body of individuals
consisting only husband and wife
governed by the system of community of property
in force in the union Territories of Dadar and
Nagar Haveli,Goa, Daman and Diu .
2. Only one PPF account can be opened by
an individual on his own behalf . However ,an
additional account can be opened on behalf of a minor
of whom he is the guardian or a Hindu undivided family
by the Karta of which he is a member or on behalf of an association of persons or a body of individuals as refer to above.
3. A person having a GPF account can open a PPF
account.
4. The account can be
opened in the Head Post Office or in the branches of SBI
or its subsidiaries or in the Nationalised Banks. The account
can be transferred at the request of the subscriber from
one Post office to another ,including Bank to Post Office
and vice-versa.
5. Minimum Amount Rs.500/-
effective from 15.11.2002 in a
year ( year means financial year i.e. from 1st
April to 31st March) Maximum Amount – in a
year in Rs.70,000/-w.e.f. 15.11.2002.If contributions in
excess of Rs.70,000/- are made during a year – Excess amount
will be treated as “Irregular subscription and will neither
carry any interest nor this excess amount will be eligible
for rebate under section 88 of I.T. Act. This excess amount will be refunded without any interest.
6. PPF account can be revived
paying a fee of Rs.10 (Rs.50 effective from 15.11.2002)
alongwith arrear of minimum subscription for each year of
default before maturity .The default Fee must be credited
to Govt Account under the Sub Head “0049”. (Not in Bank’s
Commission Account).
7. Where a deposit
is made by means of an outstation cheque or instrument,
collection charges at the prescribed rate shall be payable
alongwith the deposit and the date of realization of the
amount shall be the date of deposit.
8. The
subseruber can extend the account beyond
15 years for one or more block(s) of 5 years without
any loss of benefits. Subscriber can continue to make deposit
during this period.
9. Withdrawal
can be made any time after expiry of 5 years from the end
of the year in which the initial subscription was made.The
amount of withdrawal should
not execed 50% of the balance at the end of 4th
year immediately preceding the year in which the amount
is withdrawn or at the end of the preceding year whichever
is lower. Only one withdrawal is permisable in a year.
10. The
first loan can be taken in the third financial year from
the financial year in which the account was opened upto
25% of the amount at credit at the end of the first financial
year. Subsequent loan can be taken when the earlier loan
with interest has been fully repaid.
11. The loan is repayment either in lump-sum
or in convenient instalments numbering not more then 36
. Interest at the rate of 1% above would be charged if loan
is repaid in 36 month.Such interest should be paid in not
more than 2 monthly instalments .If the amount of loan is
not repaid within 3 month, interest on outstanding amount
of loan would be charged at 6%.Calculation of interest from
1st day of the month following the month in which
the loan is drawn upto the last day of the month in which
the last instalment of the loan is repaid.
12. A subscriber may nominate one or more
person 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 a minor (w.e.f.25.5.1994).Nomination may
also be made in respect of an account on behalf of a Hindu
undivided family(w.e.f.25.5.1994).Nomination may be cancelled
or varied by a fresh nomination.
13.
In the event of the 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 fifteen
years. Legal heirs can claim the amount upto Rs.one lakh
without production of the succession certificate after observing
certain formalities.
14. Subscription
to the PPF qualify for deduction from the taxable income
of the subscriber for income tax purpose within the limits
laid down under section 80-C of the income tax act.
15.The
interest credited to the funds is not counted as income
for the purpose of income tax.
The amount including the interest standing in the
credit of the subscriber in the fund is also totally exempt
from the wealth tax.
16. PPF
account are not transferable from one person to another.
In case of death of the subscriber, the nominee cannot
continue the account of the deceased subscriber.
17. A
female subscriber can change her name in the PPF account
in the event of her marriage.
List of our branches authorized
under PPF –1968 & Senior Citizen Scheme-2004
