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Public Provident Fund (PPF) is a government-backed savings scheme in India. It guarantees returns over a long time horizon and also provides tax benefits. The scheme has a maturity period of 15 years after which you can withdraw funds from your account. You can also partially withdraw funds after the sixth financial year of account opening. However, withdrawal is permissible only if you can meet certain conditions. PPF withdrawal can be done due to events like marriage or on medical grounds etc. In this article, we will walk you through the process to withdraw PPF online. 

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Learn: PPF Updated Rules

PPF Withdrawal Eligibility

PPF withdrawal can be partial and complete depending upon the situation. You can also opt for premature closure and extension of your PPF account after maturity as per your needs. There are separate conditions that you must fulfil for PPF withdrawal online. Following are the details of the eligibility conditions:

Type of WithdrawalTimeConditionsHow Much in Percentage
On MaturityAfter 15 yearsAny need100% amount
Partial WithdrawalAfter 6 yearsAny need50% of the balance amount
Premature closureAfter 5 yearsMedical, Education etc100% amount

How to Withdraw PPF?

1. PPF Withdrawal on Maturity

When your PPF account matures, you can withdraw the entire corpus including the interest. You can log in to your net banking to find the withdrawal amount and download Form C for withdrawal. After that, you have to fill and sign the form. Next, submit the form at the bank branch or post office where your PPF account exists. Upon processing your request, the bank will close your PPF account. The maturity amount will go into your savings account linked with the PPF account.

2. Partial/ Premature PPF Withdrawal

You can prematurely or partially withdraw PPF online. The accumulated amount can be withdrawn prematurely after meeting some basic criteria. Following are the important rules for withdrawal from your PPF account before maturity:

  • To partially withdraw funds you must have at least been invested for six financial years. For instance, if you open a PPF account on January 1, 2022. You can withdraw the amount partially from the financial year 2027-28 onwards.
  • Premature closure is also allowed after 5 years of account opening in case of emergency. 
  • There is no tax liability on partial/ premature withdrawals from your PPF account.
  • You can partially withdraw your PPF amount only once per financial year.

Procedure to withdraw PPF online or offline 

In case you wish to partially or completely withdraw the balance lying in your PPF account-

  • Firstly, you must download the application form (Form C).
  • Secondly, fill the application with relevant information.
  • Finally, submit the filled application at the concerned branch of the bank or post office.
  • To withdraw PPF online you must have a net banking facility from your bank.

What is Form C in PPF Withdrawal

To withdraw your PPF amount you must fill the Form C. It has three sections where you must provide all details to complete the process: 

  1. Section 1: The Declaration section is the first section. You must fill in your PPF account number and the amount you want to withdraw. Also, fill in the date of the PPF account opening in this section.
  2. Section 2: Section 2 is for official use. The bank or post office officials fill in details in this section, like:
    • Date of PPF account opening.
    • Date of previous withdrawal (if any).
    • Total available withdrawal amount in your account.
    • The amount sanctioned for withdrawal by the bank or post office.
    • Date and signature of the official in charge of approving the withdrawal.
  3. Section 3: The third section is for filling in bank details where you want the bank to credit your withdrawal amount. It could be into your savings account in the same bank or in a different bank. You must double-check these details to make sure the amount is credited to the correct account. Attach a copy of your PPF passbook along with your application to complete the documentation.

Check: How PPF Interest rate is Calculated

Extension of PPF on Maturity

After your PPF account matures, you have the option to withdraw all the invested money. Alternatively, you can also extend the term for the block of five years. If you do not withdraw the amount upon maturity and or request for an extension, the bank will automatically extend it. The duration of the automatic extension will be 5 years unless you specify otherwise. The interest on your funds will continue to accrue and compound if no withdrawals are made in a given year. You can choose to extend your PPF account for the next term with or without contributions.

1. PPF Extension without Contributions: 

Applicable after maturity, this process allows you to keep your PPF account active without any further deposits. Your overall corpus will earn interest for the remainder of your lifespan until you withdraw all funds at once.

2. PPF Extension with Contributions:

You can keep your PPF account active even after maturity and also continue to make contributions. For this procedure, you must submit Form H within a year of the original maturity date. If you do not submit Form H the consequences are unfavorable. You will not earn any interest on new deposits. The amount will also not qualify for tax deductions under Section 80C of the Income Tax Act.

PPF Withdrawal Rules after Extension

The rules for PPF withdrawal after extension are different for both types of extensions. So upon maturity, you must select if you want to extend your PPF with a contribution or without contributions. 

1. PPF Withdrawal After Extension With Contribution

After making an extension with a contribution, you can only withdraw 60% of the balance amount. This balance amount is the money accumulated at the start of the 5 year extension period. For instance, if your account was opened in 2000 and it had an accumulation of Rs. 10 lakhs by 2015. Now you extend its tenure for another five years with a contribution. Then you will be able to withdraw up to Rs. 6 lakhs. Also, only one withdrawal will be allowed in a year.

2. PPF Withdrawal after Extension without Contribution

You can extend your PPF account for a block of five years after maturity without any contribution. You can withdraw the PPF amount up to the balance in the account at the time of an extension. However, only one withdrawal per year is permissible. For instance, assume you open a PPF account in 2000. It has accumulated Rs. 10 lakh in 2015 and now you extend it for 5 years. Now after two years you intend to withdraw money from your PPF. You can make a withdrawal of any amount lesser than the total accumulated amount in that year. 

Premature Closure of PPF Account

You can opt for premature closure of the PPF account only after 5 financial years of account opening. It is only allowed on the following grounds as specified by the government:

1. The account holder/ spouse / children are suffering a life-threatening ailment or serious disease.

2. Children of the account holder are opting to pursue higher education. Documents from a higher education institution confirming the admission of the account holder’s child have to be submitted.

If you opt for premature closure of your PPF account a penalty will be levied on your investment. There will be a 1% reduction in the interest applicable for the period for which the account is held. For example, you have earned interest of 8% per annum for five years on the PPF account. Now you can apply for premature closure of the account under the circumstances as given above. But, the interest payable for each year will be reduced to 7%.

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