New Delhi: The Union government has notified new Public Provident Fund (PPF) rules under which the amount in the PPF account will not be liable for attachment. The new rules called, Public Provident Fund Scheme 2019, have replaced all the previous PPF rules with immediate effect. Under the new rules, the amount in PPF account will not be liable to attachment under any order or decree of any court in respect of any debt or liability incurred by the account holder.
It has a provision for extension of PPF account with deposits after maturity: The account holder on the expiry of fifteen years from the end of the year in which the account was opened, may extend his account and continue to make deposits for a further block period of five years.
PPF withdrawal from account will be allowed any time after the expiry of five years from the end of the year in which the account was opened. The account holder may, avail withdrawal of an amount not exceeding 50 per cent of the amount that stood to his credit at the end of the fourth year immediately preceding the year of withdrawal or at the end of the preceding year, whichever is lower.
An individual can open an account by making an application in Form-1. An individual can also open one account on behalf of each minor or a person of unsound mind of whom he is the guardian. Only one account shall be opened in the name of a minor or a person of unsound mind by any of the guardian. No joint PPF account is allowed.
The PPF deposit limit is not less than Rs 500 and not more than Rs 1.5 lakh in a financial year. The maximum deposit limit is inclusive of the deposits made in the subscriber’s own account and in the account opened on behalf of the minor.