The deposit scheme can be prematurely closed for reasons such a higher education or expenditure towards medical treatment.
The Finance Ministry on Monday said subscribers of the Public Provident Fund (PPF) can prematurely close the deposit scheme after completing five years for reasons such as higher education or expenditure towards medical treatment.
“A subscriber shall be allowed premature closure of his account or account of a minor of whom he is the guardian on ground that amount is required for treatment of serious ailments or life-threatening diseases of the account holder, spouse or dependent children on production of supporting documents from competent medical authority,” the Finance Ministry said in a notification.
The notification further said the allowance will be applicable to the requirement of higher education of the account holder or the minor account holder on the production of documents and fee bills in confirmation of admission in a recognised institution in India or abroad.
It, however, added that such premature closure shall be allowed only after the account has completed five financial years.
Below given the Govt Notification
TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)
SECTION 3, SUB-SECTION (i)
MINISTRY OF FINANCE
(Department of Economic Affairs)
(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 be 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 life-threatening diseases of the account holder, spouse or dependent children or parents, on production of supporting documents from competent medical authority;
(ii) That 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 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 deposits held in the account from the date of opening of the account till the date of such premature closure, calculated in accordance with the sample calculation as shown in the table on next page:
[F.No. 1/04/2016-NS.II]
(Prashant Goyal)
Joint Secretary
(Prashant Goyal)
Joint Secretary
