PUBLIC PROVIDENT FUND SCHEME, 1968
1. Can be opened by Individual & Minor with father or mother, only ONE a/c can be opened either in Post office or in Banks
2. NRI & HUF cannot open. HUF accounts opened on or before 13/05/2005 will be allowed to mature and matured HUF account should be closed on 31/03/2011.
3. Minimum Rs.500/- & Maximum Rs150000/- in a financial year (in 12 instalments) If Father has 1 a/c & he has opened another a/c along with minor child then he must deposit min. of Rs.500/- in each a/c but max. of Rs. 150000/in both the a/c taken together.
4. Interest is payable on lowest balance between 5th & last day of each month
5. Rate of interest is 8.7% WEF 01/04/2013
6. Interest earned is Tax free
7. After the maturity of PPF it can be extended for a block of 5 years. Any no. of extensions of 5 years block can be sought after expiry of each block
8. Nomination is allowed in favour of one or more person
9. PPF cannot be attached by garnishee order but can be attached by Income Tax order
10. If a/c is opened at minimum subscription & minimum subscription of Rs. 500/- is deposited in the 1st year & if not deposited in a subsequent year then the party has take the initial subscription with upto date interest on maturity or a/c can be regularized by paying a subscription of Rs. 500/- & late fee of Rs. 50/- per year of default.
11. Loans & withdrawals are allowed as per rules. Loan interest for 36 months is 2% for more than 36 months it is 6%
12. NO Agency commission is to be paid by branches WEF 01/12/2011
13. Only authorized branches can open