Premature Closure Rules of PPF Account

Before 1 April 2016, PPF account could not be closed before completion of 15 years unless the PPF Account holder expires. Now after 1 April 2016, there is an amendment made in the scheme with respect to closure of PPF account before maturity.

According to the PPF ( Amendment) Scheme 2016, a PPF account can be closed prematurely before 15 years but only under specific circumstances and after completing five years for specific reasons:

(A) The amount is required for the treatment of serious ailments or life threatening diseases of the Account holder, spouse or dependent children or parents, on production of supporting documents from competent medical authority


(B) The amount is required for higher education of the account holder or the minor account holder, on production of documents and fee bills in confirmation of admission in a recognized institute of higher education in India & abroad.

Person withdrawing prematurely has to give a penalty of 1% of the interest earned on deposits.