Amendment to Public Provident Fund Scheme, 1968
The Reserve Bank of India (RBI) has amended the Public Provident Fund Scheme, 1968, to align it with the Government of India’s notification dated November 12, 2019.
The key amendments are:
1. Increase in maximum limit of subscription:
The maximum limit of subscription has been increased from ₹1,50,000 to ₹2,50,000 per annum.
2. Change in interest rate:
The interest rate on PPF accounts will be determined by the Government of India on a quarterly basis, instead of annually.
3. Premature closure:
PPF accounts can be closed prematurely after completion of five years from the end of the year in which the initial subscription was made, subject to certain conditions.
4. Loan facility:
The loan facility from the PPF account has been withdrawn.
These amendments are effective from the date of notification, i.e., November 12, 2019.
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