The government made some amendment in their PPF rules for the benefit of the account holders. PPF is the most famous saving schemes among the employees of all kind of business enterprises as it gives the guaranteed return.
The government announced the interest rate for each quarter whereas PPF matured in the 15 years. Interest on ppf calculated monthly on the lowest balance at the credit of an account between the close of 5th day and the end of the month. Earned interest has credited into the account at the end of every year.
Amended PPF Rules Are as follows:
1. As per the new rule, any PPF account holder can deposit multiple of rs 50 as many time in a year, with a maximum of a combined deposit of rs 1.5 lakh year.
2. After 5 years of opening the PPF account, account holder allows for premature closure under some specific conditions:
a) For some serious health condition of the account holder, spouse, children, dependent, parents. Early closure will allow only after producing authentic medical papers.
b) For higher studies of account holder itself, children. To premature closure of the PPF for higher studies fee payment, the account holder should show the all required papers.
c) Government has added one more criteria for the premature closure of PPF . The account holder needs to show a copy of passport, visa and income tax return as the proof of a change in residency status.
Note: – If account holder applies for premature closure of PPF account, he will get 1% lower interest than the rate at which interest credited to the account.
3. An account holder can take a loan from their account at the rate of 1% interest. In case of death of account holder interest should be paid by the nominee. If its unpaid such due interest amount will be adjusted at the time of the final closure of PPF.
4. On December 2, post office issue the notice that post office savings cheque of any amount can know to allow to deposited into the PPF account before this deposit limit was rs 25000. The same rule applies for post office recurring deposit, PPF and Sukanya Samriddhi accounts.
5. POSB Cheques issued by the any CBS post office, if presented at any CBS post office will be treated as at par cheque and will not to be forward for the clearing. POSB cheques are accepted by the other service outlets.