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PPF full form is Public Provident Fund, a voluntary government-backed, long-term savings scheme that provides guaranteed returns that are tax exempt. The scheme is open to all Indian citizens unlike the Employees Provident Fund, which is mandatory for salaried individuals or the General Provident Fund, which is meant exclusively for government employees.
Whether you are a long term saver planning for retirement or need to understand how PPF funds can be withdrawn for medical or education needs through premature closure, learning about all the PPF withdrawal rules and procedures can be quite helpful. In this blog post, we explain the rules and procedure for PPF withdrawal in India.
There are three kinds of PPF withdrawal rules :- (i) Partial Withdrawal Rules, (ii) Premature Closure Rules and (iii) Withdrawal After Maturity Rules. Let’s understand each kind of rule one by one.
A PPF account holder can opt for partial withdrawal if their account has been operational for at least 5 years. Using this option, the account holder can withdraw a portion of their PPF savings while keeping their account open and continuing to earn interest.
The limit for partial PPF withdrawal is up to 50% of the PPF balance at the end of the 4th financial year before the withdrawal year, or the balance at the end of the previous year, whichever is lower. It is important to note that only one partial withdrawal is allowed per financial year.
Under specific circumstances, it is possible to opt for premature withdrawal/closure. However, this option becomes available only after the account completes 5 years of being active. Below, we have mentioned the specific circumstances under which premature withdrawal is authorized :-
For the treatment of a life-threatening disease.
For funding higher education.
Change in residency status of the PPF account holder.
It is important to note that premature withdrawal attracts a penalty of 1% on the applicable PPF interest rate.
Once the PPF account completes the 15-year maturity period, the account holder has two options. The first option is to withdraw the entire balance. The second option is to extend the account for additional 5 years. Once the account reaches maturity, there are no penalties or restrictions on the withdrawal.
However, if you choose to prolong your PPF account for another 5 years after completion of the initial 15-year term, you can only withdraw 60% of the balance accumulated at the beginning of that 5-year extension period.
After understanding all the rules for withdrawal of PPF, you must be wondering how to withdraw PPF. Below, we have explained all the steps you need to follow to complete the PPF withdrawal procedure successfully :-
Step 1 :- Visit the bank or post office branch where you have opened your PPF account. For example, if you opened your account with the State Bank of India (SBI), you need to visit the SBI branch where you opened your account.
Step 2 :- Then, you need to ask the branch for the public provident fund withdrawal application form. Fill in all the necessary details in the form and attach all the necessary documents along with it.
Step 3 :- Now, check all the details so ensure they’re accurate and complete.
Step 4 :- Submit the form at the counter.
Step 5 :- Once the form gets approved, the PPF amount will get transferred to your bank account.
PPF is a popular government-backed savings scheme. It is a low risk scheme that provides guaranteed returns. Currently, the PPF interest rate is 7.1% per annum. A PPF account gets matured after a period of 15 years from the end of the year in which the account was opened. Before this period, the account holder can access PPF funds by opting for partial withdrawal or premature closure, subject to certain terms and conditions.
Also Read :- Learn the Difference Between PPF vs. FD
Q1. How to withdraw PPF?
A. To withdraw PPF, visit the post office/bank branch where you have the PPF account. Then, submit a withdrawal request using the prescribed form. Once your request is approved, your PPF amount will be transferred to your bank account.
Q2. What is PPF full form in income tax?
A. PPF full form in income tax is Public Provident Fund.
Q3. Is PPF scheme mandatory for employees?
A. No, it is not a mandatory scheme for employees. It is a voluntary scheme.
Q4. Is PPF premature close allowed?
A. Yes, PPF premature closure is allowed for exceptional situations after the account has been active for five financial years. These circumstances include a life-threatening illness affecting the account holder, spouse, dependent children, or parents as well as the need to finance higher education for the account holder or dependent children.
Q5. What is PPF lock-in period?
A. PPF lock-in period is 15 years. However, partial withdrawal is allowed once the account completes 5 financial years.
Q6. Can PPF be fully withdrawn?
A. Yes, it can be fully withdrawn once your PPF account completes the 15-year maturity period.
Q7. Can I extend PPF online in SBI?
A. Yes, you can extend PPF online in SBI. To do this, visit https://www.onlinesbi.com, then login using your credentials. After logging in, click on e-Services --> PPF Account Extension.
Q8. What is PPF interest rate 2026?
A. The PPF interest rate is 7.1% per annum, at present.
I’m Manish Kumar, a content management specialist. I simplify complex financial and regulatory topics into clear, insightful content. As a regular contributor to the Registrationwala portal, I provide updates on finance, Tax, government schemes, compliance, and other incorporation information. My goal is to keep you informed about key industry developments and their impact.
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