New Delhi: The Modi government had last year announced a few changes in the PPF rules. A PPF account holder needs to apprise themselves about the changes as it would have an impact on their long-term retirement fund. Also Read - Interest Rates For Small Saving Schemes Announced, Kept Unchanged
Speaking on the new PPF rules Jitendra Solanki, a SEBI registered tax and investment expert told Zee Business, “Most important change made in recent Finance Ministry’s notification in regard to PPF is lowering the interest rate on loan against PPF from 2 per cent to 1 per cent. Earlier, premature closure of PPF was not allowed, now one can close one’s PPF account after five years of investment and joint PPF account can’t be opened.” Also Read - Govt Hikes Interest Rate on Employees’ Provident Fund For 2018-19: Know The Difference Between EPF And PPF
Here’s a list of five things you need to know about new PPF rules: Also Read - Interest Rate on Public Provident Fund, National Savings Certificate Increased to 8 Per cent For October - December Quarter 2018; Check Out Rates For Other Small Saving Schemes
1) Number of PPF Accounts one can have: One person can have only 1 PPF account and one minor PPF account. A PPF account can be opened by parents. In case of a specially-abled child/adult, the PPF minor account can be opened by a guardian too.
2) Investment: A minimum of Rs 500 to a maximum of Rs 1.5 lakh can be invested by a PPF account holder. For PPF Minor accounts, investment can’t go beyond Rs 1.5 lakh in a year.
3) PPF Account Closure: If there is a change in one’s residential address, the PPF can be closed prematurely, however, not before 5 years of the opening of the account.
4) In case of any financial default, the PPF balance can be used as an emergency fund.
5) A PPF account can be revived during the maturity period with the payment of Rs 50 and Rs 500 arrears for each year of PPF investment default.