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Premature Closure of PPF Account: Notification

Premature Closure of PPF Account i.r.o. Minor Subcriber: Notification dated 18th June, 2016 [TO BE PUBLISHED IN THE GAZETTE OF INDIA. EXTRAORDINARY

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Premature Closure of PPF Account i.r.o. Minor Subcriber: Notification dated 18th June, 2016

[TO BE PUBLISHED IN THE GAZETTE OF INDIA. EXTRAORDINARY, PART II.
SECTION 3, SUB-SECTiON (i)]
MINISTRY OF FINANCE
(Department of Economic Affairs)

NOTIFICATION

New Delhi. the 18th June 2016

G.S.R. . . …..(E) In exercise of the powers conferred by sub-section of (4) of section 3 of the Public Provident Fund Act 1968 (23 of 1968), the Central Government hereby makes the following scheme further to amend the Public Provident Fund Scheme, 1968, namely:-

1. (1) This Scheme may be called Public Provident Fund (Amendment) Scheme, 2016.
(2) It shall come into force on the date of its publication in the Official Gazette
2. In the Public Provident Fund Scheme, 1968, in Paragraph 9. for sub-rule 3(C). the following sub-paragraph shall be substituted, namely-
“(3C) A subscriber shall he allowed premature closure of his account or the account of a minor of whom he is the guardian. on a written application to the Accounts Office, on any of the following grounds namely:-
(i) that the amount is required for the treatment of serious ailments or like threatening diseases of the account holder. spouse or dependent children or parents. on production or supporting documents from competent medical authority,
(ii) that the amount 8 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 recognised institute of higher education in India or abroad:
Provided that such premature closure shall be allowed only after the account has completed five financial years.
Provided further that premature closure under this sub-paragraph shall be subject to deduction of such amount which shall be equivalent to one percent less interest on the interest rates as applicable from time to time in the table payable on the deposits held in the account from the date of opening of the account till the date of such premature closure. calculates in accordance with the sample calculation as shown in the table on next page:

Calculation showing the interest payable to depositor

Year
(1)
Opening Balance
(2)
Assumed Fresh Deposit
(3)
Total Amount
(4)
Rate of Interest
(5)
1% less on the applicable rate of interest
(6)
Interest accrued
(7)
Outstanding Balance
(8)
2006-07 1000.00 1000.00 8.0
7.0
70.00
1070.00
2007-08 1070.00 500.00 1570.00 8.0
7.0
109.00 1679.90
2008-09 1679.90 500.00 2179.90 8.0
7.7
167.85 2347.75
2009-10 2347.75 700.00 3047.75 8.0
7.0
213.34 3261.09
2010-11 3261.09 600.00 3861.09 8.0
7.0
270.28 4131.37
2011-12 4131.37 1000.00 5131.37 8.6
7.6
389.98 5521.36
2012-13 5521.36 1200.00 6721.36 8.8
7.8
524.27 7245.62
2013-14 7245.62 1500.00 8745.62 8.7
7.7
673.41 9419.03
2014-15 9419.03 1500.00 10919.03 8.7
7.7
840.77 11759.80
2015-16 11759.80 1000.00 12759.80 8.7
7.7
982.50 13742.30
Total 9500.00
13742.30

[F.No. 1/04/2016-NS.II]

Prashant Goyal
Joint secretary

Source: www.finmin.nic.in
[http://finmin.nic.in/the_ministry/dept_eco_affairs/budget/Premature_ppf18162016.pdf]

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