FAQ on PPF ( Public Provident Fund)

Q-1 Who can invest in a PPF?
Ans : Any individual or any guardian on behalf of a minor.

Q- 2 How many Accounts can an individual have?
Ans : An individual cannot have more than one PPF account in his name.

Q- 3 Who cannot open a PPF Account?
Ans : An NRI cannot open a PPF Account and the account cannot be opened in joint names.

Q-4 What would be the rate of interest?
Ans : Rate of interest currently is 8% per annum to be accrued at the end of the financial
year. Interest is calculated on the minimum balance in the account between the 5th and last day of the month.

Q-5 What would be the minimum and maximum deposit amount in a PPF?
Ans : The minimum deposit amount is Rs 500/- in a Financial Year while the maximum deposit amount is limited to Rs 70,000/-.

Q-6 What is the maximum number of deposits accepted in a year?
Ans : The maximum number of deposits permitted in a Financial Year is limited to 12 transactions, but the amount in each installment may not be the same. The subscription has to be made in multiples of Rs.5/- only.


Q-7 Is withdrawal possible within the maturity period?
Ans : Yes, withdrawal is possible within the maturity period, but not before 5 completed financial years of initial subscription. The amount that can be withdrawn under such a situation is limited to 50% of the balance of the credit at the end of 4th year immediately preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.

Q-8 Can the PPF account be transferred?
Ans : Yes the PPF account can be transferred from one Bank to another Bank, one Bank to Post Office and vice versa. Refer this for transfer..

How to transfer PPF account from one branch to the other of ( bank or post office)?

Q-9 What is the maturity period?
Ans : The account matures on completion of 15 Financial Years. But it can be continued with or without subscriptions after maturity for block periods of 5 years by exercising the option through Form H.

Q-10 What are the rules regarding drawing of loans against a PPF Account?
Ans : Loans from the amount at credit in PPF a/c. can be taken after completion of one year from the end of the FY of opening the account and before completion of the 5th year.


Q-11 What is the loan amount that can be availed?
Ans : Loans from the amount at credit in PPF a/c. can be taken any time after the expiry of one year from the end of the year in which the initial subscription was made but before the expiry of 5 years. A subscriber may, if he so desires, apply through Form ‘D’ for obtaining loan consisting a sum of whole Rupees not exceeding Twenty Five Percent (25%) of amount that stood to his credit at the end of the second year immediately preceding the year in which the loan is applied for.


Q- 12 How is the repayment of loan done?
Ans : Principal amount of a loan under this Scheme shall be repaid by the subscriber before the expiry of 36 months from the first day of the month following the month in which the loan is sanctioned. The repayment may be made either in one lump sum or in 2 or more monthly installments within the prescribed period of 36 months. The repayment will be credited to the subscriber’s account. After the principal of the loan is fully repaid, the subscriber shall pay interest thereon in not more than 2 monthly installments at the rate of 1% p.a. of the principal for the period commencing from the first day of the month following the month in which the loan is drawn up to the last day of the month in which the last installment of the loan is repaid. If the loan is not repaid partly or fully within the prescribed period of 36 months, interest on amount of loan outstanding shall be charged at 6 % p.a. The interest recoverable shall accrue to the Central Government.

Q- 13 How many person(s) can be nominated in case of death of the subscriber?
Ans : A subscriber can nominate one or more persons to receive the amount standing to his credit in case of his death before the maturity period of the account.

Q- 14 Who can be the nominees in case of an account opened on behalf of a minor?
Ans .: No nomination(s) can be made when an account is opened on behalf of a minor.


Q-15 Can there be a change in the nominations?
Ans : Yes changes in the nominations is possible by applying for a fresh nomination in Form E.

Q- 16 What is the fee charged for registration, cancellation or variation of nominations?
Ans : No fees are charged for such operations.

Q- 17 What are the rights of the nominee?
Ans : Nominee does not have the right to ownership. He is only authorised to collect the money on the death of the subscriber and keep it with him as a trustee for the benefit of the persons who are entitled to it under the law of succession.

Q- 18 How is the repayment done after the death of the subscriber?
Ans : If a subscriber to an account in respect of which nomination is in force dies, the nominee or nominees may make an application in Form G, or as near thereto as possible, to Bank together with the proof of death of the subscriber and on receipt of such application all amounts standing to the credit of the subscriber after making adjustment, if any in respect of interest on loans taken by the subscriber shall be repaid by the Bank itself to the nominee or nominees. If the nominee is dead, the surviving nominee or nominees shall, in addition to the proof of death of the subscriber, also furnish proof of the death of the deceased nominee. Where there is NO nomination in force at the time of death of the subscriber, the amount standing to the credit of the deceased after making adjustment, if any, in respect of interest on loans taken by the subscriber, shall be repaid by the Bank to the legal heirs of the deceased on receipt of application in Form G in this behalf from them.


If the credit balance standing in the account is upto Rs.1 lakh, the same may be paid to his /her legal heirs on production of :
1. A letter of indemnity.
2. An affidavit
3. A letter of disclaimer on affidavit, and
4. A certificate of death of subscriber, on stamped paper.


Q- 19 Does the PPF account earn interest after the death of the subscriber?
Ans : On the death of the subscriber, the balance in PPF a/c. does not cease to earn interest.
The interest is admissible till the end of the month preceding the month in which payment of the deposits is made to the nominee / legal heirs.

Q- 20 Can a PPF account be transferred from one individual to another?
Ans : A PPF a/c. is not transferable from one individual to another, as such the nominee
cannot continue the account of a deceased subscriber in his own name.