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PPF Withdrawal: The government-backed Public Provident Fund (PPF) is one of India's most trusted long-term savings schemes, especially for investors who wish to avoid risk. However, although the PPF has a lock-in period of 15 years, partial withdrawals are permitted before maturity under certain conditions. Let's find out how you can make a pre-maturity withdrawal from your PPF.
Step 1. To withdraw funds, the account holder must download the PPF withdrawal form, known as Form C, from the bank's website or obtain it from a bank branch.
Step 2. Fill in the required details in the form, such as the amount to be withdrawn and how many years the account has been active.
Step 3. Attach a copy of the PPF passbook along with Form C.
Step 4. Submit all documents to the concerned bank branch.
If there is any outstanding PPF loan against the account, that amount will be deducted from the eligible withdrawal.
The government has laid down rules on when and how investors can withdraw money from their PPF accounts. The withdrawal rules are divided into three main categories: partial withdrawal, premature closure, and withdrawal after maturity. Regarding partial withdrawal, it is permitted after completing five years from the financial year in which the PPF account was opened. For example, if a PPF account was opened in 2010-11, withdrawals can be made in 2016-17 or thereafter.
- The maximum amount for partial withdrawal can be up to 50% of the balance in the account at the end of the fourth year or the end of the previous year, whichever is lower.
- The maturity period for a PPF account is 15 years. Investors can choose to close the account or extend the maturity.
- To keep the account active, a minimum deposit of ₹500 is required in each financial year.
- After the account matures, it can be extended in blocks of 5 years each.
- The full amount can be withdrawn upon completion of maturity.
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