The Union government has announced new rules for Public Provident Fund (PPF) rules as per which the amount in the PPF account will not be liable for attachment.
The new rules are tiled as Public Provident Fund Scheme 2019. These rules have replaced all the former PPF rules with immediate effect.
Under the new rules, the amount in PPF account will no longer be liable to attachment under any order or decree of any court in terms of any debt or liability credited by the account holder.
It has now included a provision for extension of PPF account with deposits post maturity: The account holder on the completion of fifteen years from the end of the year in which the account was started, may expand his account and continue depositing for a further block period of five years.
PPF withdrawal from the account will now be permitted any time post the expiry of five years from the end of the year in which the account was started. The account holder may now, withdraw an amount not more than 50 percent of the amount that stood to his credit at the end of the fourth year just after preceding the year of withdrawal or at the end of the preceding year, whichever is below.
An individual will now be able to open an account by making an application in Form-1. An individual will also be able to open one account on behalf of each minor or a person of unsound mind of whom he is the guardian. However, only one account shall be opened in the name of a minor or a person of unsound mind by any of the guardian. No joint PPF account is permitted.
The minimum PPF deposit limit is Rs 500 and not more than Rs 1.5 lakh in a financial year.
The maximum deposit amount is inclusive of the deposits made in the subscriber’s own account and in the account opened in the name of the minor.