Investment Rules Changed: The Central Government has changed PPF investment rules, if you also have a Public Provident Fund PPF account, then you should know what has changed now, know this before depositing money, otherwise it will create difficulties.
Contribution of PPF Account Holder Should be in Multiples of 50
The contribution of PPF Account Holder should be in multiples of Rs 50. This amount should be no less than Rs 500 or more in a year. But the amount deposited in the PPF account much not surpass Rs 1.5 lakh in a whole year. Aside from this now you can deposit the amount in your PPF account monthly.
Form- 1 to be filled to start the PPF Account
To start the PPF account, Form-1 is needed to be submitted and not form A. To increase the time period of PPF account one year before maturity after 15 years (with deposits), one needs to apply in Form- 4 and not Form H.
You get the option to choose to continue even after maturity
You get the option to choose to continue your PPF account even after 15 years without depositing any amount. There is no obligation to deposit money in this. After completion of maturity period, if you are looking to extend the PPF account, then you can withdraw the amount only once in a annual accounting period.
Interest on Loan Reduced from 2% to 1%
If you take a loan against the money deposited in your PPF account, then the interest rate has been reduced from 2% to 1%. After you pay the principal amount of the loan, you need to pay the interest in more than 2 installments.
25 percent loan
If you take loan against PPF account, then 2 years before the time of application, when you can have a loan only on 25% of the accessible PPF balance in your account. Suppose, you applied for loan on 31st March’2023. Then 2 years before this day i.e. on 31st March’2020, if you had one lakh in your PPF balance, then you can take only 25% loan.
