Know how to apply and full procedure.
The central government has issued new special notification regarding public provident fund (PPF). the Indian government has named this notification as PPF scheme 2019. the new changes in the scheme are in the application with immediate effect. after this reform in the PPF a, any user is eligible to open his or her account by just filing up an application through form-1. people can open the PPF account of his/her children who are underage and in his scheme the guardians who are taking care of the children can also be included.
PPF deposit limit
In a financial year, you are free to deposit between a limit of 500 INR to 1.5 lakhs INR. But while depositing the money, you should keep in mind that the maximum limit should be the sum of your account and plus the account of the minor account holder.
Discounted PPF Account
If a person had deposited a minimum amount of 500 INR in the first year after he or she has opened PPF account. But then he didn’t add any money in his or her account then the account will be inactivated.
PPF Account Revival
To revive the inactivated account, the user will have to pay a fine of 50 INR and he has to pay an arior monthly to a minimum amount of 500 INR. If an inactivated account has some cash already and they had not been revived before maturity then the user will continue to get the interest on the previous amounts f money deposited in the account. the interest that the user will get on the previous amount will be based on the timely notifications of the interest rates that the user gets.
If PPF account of any user is inactivated then the user can’t open a new PPF account until the old account has been closed or deactivated. the interests of the PPF account will be credited in respectively at the end of every financial year. The current interest rates for the PPF account is 7.9%. this interest rates will be decided on the minimum amount present in the account before 5th of every month. The interests will be credited at the end of every year.
After opening the account, till five years, the money can’t be withdrawal from the account. After completion of five years, the money can be withdrawl from the PPF account. To withdraw the amount, the user needs to fill the form-2 and the value of money that is to be withdrawn from the account should be less than 50% of the total amount of money present in the PPF account.
The PPF account can’t be controlled by the order of any government or judiciary in the situation of any liability or accusations.
Extension of the PPF account after the period of maturity
After the period of maturity, the pp account can be extended for the period for further 5 years. The users need to apply for the extension of the PPF account one year before the period of maturity of the PPF account.