April 23, 2020


Public Provident Fund:- The Public Provident Fund is saving-cum-tax-saving instrument in India, introduced by the National saving Institute of the Ministry of finance in 1968 The aim of the PPF is to mobilize small savings by offering an investment with reasonable returns combined with income tax benefits.        

Public Provident Fund (PPF) is operated by State Bank of India or Selected Banks and Post Offices. Account can be opened by Individuals ( joint account not allowed since 13.3.2005). Minimum Contribution Rupees 500 and Maximum Contribution 1.5 Lakh ( not more than 12 installments in a year).                                         

Period:- Generally 15 year is time period but it can be extended 5 year at a time for 3 such blocks.     

Loan:- Loan allowed after 3rd year of opening of account till end of 6th year.                                   

Nomination:- Nomination in favour of one or more person allowed. 

Interest:- Interest rate is 8.7 % ( since 1.4.2013) allowed on the minimum balance between 5th and Last day of the month. Withdrawal after 6th year allowed Subject to Maximum 50% of the balance at the end of 2nd preceding financial year.

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