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POSTED BY ON October 13, 2013 2:02 pm COMMENTS (4)
we have 2 ppf a/c for last 3 yrs . but today our financial condition is not gud . I want closed my ppf a/c and withdraw the funds . plz suggest me legal way to do this . as we are in need for fund urgently.
@vinod
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For more details on PPF account you can read our article Understanding Public Provident Fund, PPF
There is no option to prematurely close a PPF account before the mandatory period of 15 years, except in case of death of the account holder. Liquidity is Poor but loans and partial withdrawals are available.
Minimum installment in a PPF account is Rs 500 in a year. So you can just pay that for this year and hopefully things would be better next year.
If you do not deposit the minimum amount, then account will be termed as discontinued account. Interest would however continue to accrue.You could regularize the account again by paying the penalty fee of Rs 50 for each year of the minimum amount has not been deposited along with subscription arrears of Rs 500 per Financial Year.
For example, if you paid in Rs. 400 in year 1, Rs. 10,000 in year 2 and Rs. 0 in third year. You would need to pay into your PPF account fees of Rs. 50 per year where you did not pay the minimum Rs. 500. In the example, you would have to pay Rs. 100 as fees (50 for 1st year on 400 Rs investment, 50 for 3rd year on 0 investment). Additionally, you would have to deposit Rs. 100, Rs. 0 and Rs. 500 as arrears for year 1,2 & 3 as the amount deposited fell short of Rs. 500.
Dear Vinod, you can not close your PF account. You can take loan, if 3 FYs are over. The ROI ‘ll be +1% on the running ROI of PPF. so it ‘ll be 9.7%. The maximum amount you can withdraw as loan ‘ll be 50% of the balance available on the closure of 3rd FY.
Thanks
Ashal
Hi,
Pre-mature withdrawals can be made after the end of the sixth year since the PPF account opened. So, I think you will not be able to withdraw now, but loan facility is available on PPF account, and You can take that from 3rd year with very little interest around @2% p.a , I guess.
Sumit