PPF Withdrawal

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 February 2011 Dear Sirs,

I want to withdraw the whole amount lying into my PPF account. Is it possible. If yes please tell me after how my years of opening of the account the complete withdrawal is possible.

Also please tell me the consequence on complete withdrawal, if for some year the contribution is not paid.

Best Rgds,

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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14 February 2011 after 15 years... complete withdrawal is possible.

A nominal penalty of Rs. 50/- for each year, in which NIL contribution is made, will be charged

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2011 Dear Subhash Jee,

Thanks a lot for your reply.

After complete withdrawal could it be possible to continue the same account or it will be closed. Is there any interest on amount withdrawn considering it as loan, if I wish to continue the same account after complete withdrawal.

Regards,

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 **Withdrawing the Entire Amount from a PPF Account**

1. **Eligibility for Full Withdrawal:**
- You can withdraw the entire amount from your Public Provident Fund (PPF) account only after the completion of 15 years from the end of the financial year in which the account was opened.
- For example, if you opened your PPF account on April 1, 2008, you would be eligible for full withdrawal after March 31, 2023.

2. **Consequences of Non-Payment of Contributions:**
- **Account Status:** If you miss contributions in a financial year, your account does not automatically get closed but it may be considered discontinued. The account can be revived by paying a penalty (Rs. 50 per year of default) along with the minimum contribution amount for the years missed.
- **Interest:** Interest is credited on the balance available in the account for the period it is maintained. If contributions are missed, the interest is still calculated on the balance, but missed contributions will not accrue interest until the account is revived and the contributions are brought up to date.

3. **Post-Withdrawal Account Status:**
- **Account Closure:** Once you fully withdraw the amount from your PPF account, the account is closed and cannot be continued. You cannot continue to use the same PPF account for further deposits or loans.
- **Interest on Withdrawal:** There is no provision for treating the withdrawn amount as a loan. Once withdrawn, the account is closed and no further interest is accrued or payable.

4. **Options Post-Withdrawal:**
- **Reopening:** If you wish to reinvest or continue investing, you would need to open a new PPF account (subject to the rules of the PPF scheme at the time). Typically, a person can have only one PPF account in their name at any point.
- **New Contributions:** You can open a new PPF account in the name of a family member or yourself, subject to the rules and regulations in force at that time.

### **Summary:**

- **Full Withdrawal:** Possible after 15 years from the end of the financial year in which the account was opened.
- **Non-Payment Consequence:** Missed contributions can lead to the account being considered discontinued, which can be revived by paying the penalty and missed contributions.
- **Post-Withdrawal:** The account will be closed, and you cannot continue the same account. You cannot treat the withdrawn amount as a loan or accrue further interest on it. If you wish, you can open a new PPF account in compliance with the rules.

For specific advice and assistance with the process, it is advisable to consult with your bank or financial institution managing your PPF account.