Rules for premature withdrawal of PPF announced

The Finance Ministry has announced new rules allowing for premature withdrawal of the Public Provident Fund (PPF) account deposit for reasons such as higher education or treatment of serious ailments.

The premature withdrawal will, however, be allowed only after the subscriber's deposit scheme account has completed five years, the ministry said in a notification.

"A subscriber shall be allowed premature closure of his account or account of a minor of whom he is the guardian on ground that the 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," the notification said.

Withdrawal will also be allowed if the amount is required for higher education of the account holder or the minor account holder, on production of documents and fee bills in confirmation of admission in a recognised institute of higher education in India or abroad, the notification said.

--IANS

mm/kb/dg