I opened PPF account with State Bank of India in January 2011. Can I withdraw from my account now in May 2016? Kindly explain the rules for PPF withdrawal.
- AK Das
If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money. The partial withdrawal is allowed after the completion of 6 financial years. This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following:
- 50 percent of the account balance at the end of fourth financial year, 31 March 15
- 50 percent of the account balance of the end of previous financial year, 31 March 17.
There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing PPF interest rate.
This article was originally published on May 20, 2016.
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