You can make partial withdrawal after a given number of years or a complete withdrawal after the maturity period. In this article, we have covered the PPF withdrawal rules in detail.
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PPF Withdrawal Rules on Maturity
At the time of withdrawal after 15 years, the account holder has the following options.
1. Complete withdrawal
- The PPF scheme has a lock in period of 15 years.
- At the end of the tenure, investors can choose to withdraw their entire investment.
- The withdrawal amount gets credited in the savings account.
- Investors need to submit Form 3 at the post office or bank where the account is held to terminate it.
2. PPF account extension without contributions
- Investors can also keep their account active without making further deposits for any amount of time.
- However, investors are allowed to make one withdrawal in a financial year.
- There is no limit on the amount that can be withdrawn
3. PPF account extension with contributions
In case the account holder wants to keep the account active and continue to make contributions.
- You can apply for an extension of their account in a block of 5 years.
- You can withdraw each year during the extended period.
- However, you cannot withdraw more than 60 per cent of the total balance reflecting at the beginning of the extension period.
PPF Withdrawal Rules on Premature withdrawal
Investors can partially withdraw their investment from PPF accounts. However, there are specific rules on partial withdrawals.
- Premature withdrawals are allowed only after completion of 5 years from the end of the year. For instance, if the PPF account was started in Feb 2012, then the investor can begin making their partial withdrawals from the financial year 2017-2018.
- A premature withdrawal is allowed in specific cases. In the event of life threatening disease of account holder, spouse or dependent children. To finance the higher education of account holder or dependent children. In case of change of resident status of account holder ( i.e. became NRI).
- Moreover, you cannot withdraw the entire amount from their PPF account.
- There is a cap on the withdrawal amount. The withdrawal is allowed up to 50% of balance at the credit at the end of 4th preceding year or at the end of preceding year, whichever is lower
| Year | Investment amount (in ₹) | Total corpus (In ₹) |
| 2012 | 50,000 | 50,000 |
| 2013 | 50,000 | 1,00,000 |
| 2014 | 60,000 | 1,60,000 |
| 2015 | 80,000 | 2,40,000 |
| 2016 | 1,50,000 | 3,90,000 |
| 2017 | 90,000 | 4,80,000 |
| 2018 | 1,00,000 | 5,80,000 |
| 2019 | 1,10,000 | 6,90,000 |
you can withdraw 50% of the corpus at the end of the fourth financial year (FY2015) or the preceding year (FY2019); whichever amount is lower. As per the table:
- Corpus at the end of FY2015 is ₹2.40 lakh, so 50% of that amount is ₹1.20 lakh.
- Corpus at the end of FY2019 is ₹6.90 lakh, so 50% of that amount is ₹3.45 lakh.
- This means withdrawal amount ₹1.20 lakh in 2020.
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