PPF Account

PPF stands for Public Provident Fund. The scheme was introduced by central government in 1968 to mobilize small savings. The scheme offers a risk free investment avenue with decent returns and income tax benefits.


Individual or individual on the behalf of minor can open PPF account at any branch of authorized banks or post office.

Individual on the behalf of minor

Documents Required:

  1. A recent passport size photograph
  2. Identity Proof copy with original to verify (PAN Card, Driving License, Voter ID Card, Passport)
  3. Address Proof copy with original to verify (Telephone Bill, Electricity Bill, Ration Card)

Investment Limit:

With the effect from August 2014 PPF account holder can invest minimum Rs 500 and maximum Rs 1,50,000 in his/her account. Please note that if you deposit more than 1.5 lac per annum in your PPF account as the excess amount will neither earn any interest nor will be eligible for rebate under Income Tax Act.

Minimum: 500/- per annum in multiples of 100/-
Maximum: 1,50,000/- per annum


Duration of PPF scheme is 15 years. Thereafter subscriber can be extended its duration for one or more blocks of 5 years.

15 years
Can be extended for one or more blocks of 5 years

Rate of Interest:

8.7% per annum effective from 01.04.2013 credited in account on 31st March every year calculated on the minimum balance between 5th day and end of the month. PPF interest rate is notified by the Government of India in official gazette from time to time.

8.7 % per annum effective from 01.04.2013


The facility of loan against the PPF deposits is available from 4th to 6th year of deposit to the extent of 25% of the amount deposited as at the end of the last financial year. Second loan can be taken on full payment of first loan.

upto 25% of balance


Withdrawal is permissible every year from 7th financial year from the year of opening account. Withdrawal limited to 50% of the balance at the credit at the end of 4th year preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.

50% of the balance

Tax Benefits:

Up to 1.5 lac per annum investment in PPF is fully exempted from Income Tax under section 80 C. Interest income is totally exempt from Income Tax. Amount outstanding to the credit is fully exempted from Wealth Tax also.

Up to 1.5 lac under 80C
EEE benefit


Nomination facility is available in the name of one or more persons. The shares of nominees may also be defined by the subscriber.

Account Transfer:

The account can be transferred to other branches / other banks or Post Offices and vice versa upon request by the subscriber. The service is free of charges.

Other Banks
Post Office

Where to Open PPF Account:

PPF can be opened at authorized public or private banks and post offices. Here is the list of Banks authorized to open PPF Account.


1 thought on “PPF Account”

  1. Prakash Chandra Saxena

    Undersigned is working at NTPC Ltd. and EPS95 pension was started after 58 years age. No Pension order is received so far, but pension is being sent to Punjab National Bank, Bareilly. I am unable to submit life certificate form in absence of Pension Order No. and the pension has been stop since February 2016.
    Please arrange to forward Pension Order No., so that life certificate may be produce.
    An early response on mail- pcsaxena@ntpc.co.in shall be highly appreciated.

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