Premature Closure of PPF Account
The Government allows premature closure of the PPF account in extreme circumstances like life threatening disease treatment or for children’s’ higher education
The PPF account can be closed prematurely after completion of five financial years for the treatment of serious ailments or life threatening diseases of the accountholder, spouse or dependent children or parents and for higher education of the account holder or the minor account holder. Such premature closure of PPF accounts hall 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. Further, the Government is empowered to relax rules in exceptional circumstances.
This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
Source : PIB