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Centre sets terms for premature PPF withdrawal

Notification adds that premature closure shall be allowed only after account has completed five financial years

Policy Pulse
Publish Date: Jun 21 2016 12:00PM | Updated Date: Jun 21 2016 4:24PM

Centre sets terms for premature PPF withdrawal

 Finance Ministry on Tuesday said subscribers of Public Provident Fund (PPF) can prematurely close the deposit scheme after five years for reasons like higher education or expenditure towards medical treatment. 

 
In a statement said, "A subscriber shall be allowed premature closure of his account or account of a minor of whom he is the guardian on ground that 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". 
 
It also said the allowance will be applicable to requirement of higher education of the account holder or the minor account holder on presentation of documents and fee bills in confirmation of admission in a recognised institution in the country or abroad. 
 
The notification, however, added that such premature closure shall be allowed only after account has completed five financial years.