Public Provident Fund scheme is for every section of society. It has been introduced on 16.05.1968 under Public Provident Fund Act. Public Provident Fund can now be opened with many banks. bloggers to follow in 2022. Information provided here for top 10 Commerce Colleges In Mumbai bloggers for admission in 2022 has been after a good investment of time.
If there is no deposit in the previous financial year, it is a default in the subscription. Such accounts will continue to earn interest at the rate applicable to the scheme from time to time, but the account will be discontinued. the account holder will not be eligible for opening a new account before closure of such account. It can be regularized by depositing Rs. 500 and Rs. 50 for each financial year of default.
Who can open
Any individual or an individual on behalf of minor can open the account. However, NRIs cannot open such account with effect from 25th July 2003. Also Hindu Undivided Family (HUF) cannot open PPF account from 13th May 2005.
Joint account cannot get opened under this scheme. An existing PPF subscriber on becoming NRI may not close PPF account for next -5- years.
On the date of maturity, if the subscriber continues to be an NRI, he cannot renew the account, but if on the date of maturity, if he bcomes resident Indian, then he can renew the account for five years.
Minimum Rs. 500 and maximum Rs. 1.5 lacs can be deposited every financial year, which shall be inclusive of the deposit made in his account and in the account opened on behalf of minor. Deposit can be made in the multiple of Rs. 50.
Discontinued Account due to default in subscription
If there is no deposit in the previous financial year, it is a default in the subscription. Such discontinued account will continue to earn interest at the rate applicable to the scheme from time to time.
This account can be regularised by depositing Rs. 500 or subscription amount and Rs. 50 as default fee for each financial year of default.
Total deposit made in account is Rs. 1.50 lakh but default fee will be excluded from it. No loan from discontinued account.
Loan from PPF account
Loan is allowed in regular PPF account. However, only one loan is permissible in a year.
Loan can be taken from the third financial year. Loan amount cannot exceed 25% of teh balance at the credit at the end of second preceding year. Subsequent loan can be taken only when the previous loan is fully repaid with interest.