The Ministry of Finance has amended the Public Provident Fund Scheme 1968 to make way for premature withdrawal from a PPF account on certain conditions.
According to the Provident Fund (Amendment Scheme), 2016, a person can prematurely close their PPF account after completing five years, to pay for medical treatment or for the purpose of higher education.
The finance ministry sent out a notification on the move that said:
“A subscriber shall be allowed premature closure of his account or account of a minor of whom he is the guardian on ground that amount is required for treatment of serious ailments or life-threatening diseases of the account holder, spouse or dependent children on production of supporting documents from competent medical authority.”
PPF accounts have a tenure of 15 years and so far, withdrawal of before maturity wasn’t allowed.
Subscribers would be allowed to prematurely close the account on production of documents and fee bills in confirmation of admission in a recognized institution in India or abroad. Likewise, interest rate on PPF scheme, Kisan Vikas Patra scheme and Sukanya Samriddhi Account Scheme were kept at 8.1 per cent, 7.8 per cent and 8.6 per cent respectively.