PPF_Maturity_Extension

PUBLIC PROVIDENT FUND ACCOUNT - CLOSURE / EXTENSION OF MATURITY

Rule-117 (10) of CBS Manual:

(i) Any time after the expiry of fifteen years from the end of the year in which the account was opened, the account holder may apply in Account Closure Form to the Post Office for the closure of his/her account. The post office shall allow the withdrawal of the entire balance along with due interest up to the last day of the month preceding the month in which the account is closed.

(ii) The account holder may retain his/her account after maturity without making any further deposits for any period and the balance in the account will continue to earn interest at the rate applicable to the Scheme:

Provided that the account holder may make one withdrawal, in each year, of any amount within the balance.

(3) Once the account is continued without deposits for more than a year, the account holder shall not have the option again to continue the account with deposits. Note: For closure of PPF account, procedure laid down for closure of Savings Account should be followed.

Rule-117 (11) of CBS Manual:

PPF Account can be extended for a further block period of five years, after maturity with deposits within 1 year of the date of maturity of original PPF Account or extended PPF Account by submitting application in the prescribed form. An account opened on behalf of a minor or a person of unsound mind may be extended at the request of the guardian.

(ii) No deposits can be made in the account, if the account holder fails to give his/her option to continue the account within one year from the date of maturity. Any deposit made in such account shall be treated as irregular and refunded by the post office immediately without any interest.

(iii) Facility of partial withdrawal shall be available to the account extended with deposits, subject to the condition that the total withdrawal during the block period of five years shall not exceed sixty per cent of the balance at credit at the commencement of the present block period:

Provided that the withdrawal, subject to the ceiling as specified above may be made either in a single or in yearly instalments.

(iv) Above provisions of paragraphs (1) to (3) shall also apply on PPF accounts after maturity on expiry of each extended block period of five years.

(v) An account holder who has given his/her option for the extension of the account for a period of five years shall not have the option to withdraw his/her request at a later stage.

Also read Rule 120 of CBS Manual.

Amendment:

Above provisions of paragraphs (i) to (iii) shall also apply on PPF accounts after maturity on expiry of each extended block period of five years. (SB Order No. 20/2022)

PPF accounts can be closed online as per SB Order No. 14/2022. The facility is available for POSB Net banking users. Under Services Option, this facility is available. Only matured accounts can be closed online. Premature closure cannot be done online.

Click here for SB Order No. 20/2022 and SB Order No. 14/2022

Amendment :

Extension of PPF account by NRI:

For only those active NRI's PPF accounts opened under the Public Provident Fund Scheme (PPF), 1968, where Form H did not specifically ask the residency status of the account holder, POSA rate of interest shall be given to the account holder (Indian citizen who became NRI during the currency of Account) till 30th September 2024. Thereafter, the said account shall earn zero percent rate of interest.

Click here for SB Order NO. 5/2024