The government make changes every now and then in major deposit schemes. The last time changes were made to Sukanya Samridhi Yojana, which is an investment scheme backed by the government to help female child of parent. Now, this is the news for all the PPF account holders that the Government has made some major changes to the PPF scheme regarding deposits, maturity, extensions, etc. In this article, we will discuss all the related points.
These Are The Five Major Changes Made To PPF By The Government:
- The contributions made to the accounts must be in the multiples of ₹50, with the minimum deposit amount is ₹500 in a year. However, the deposit amount in the PPF account should not exceed ₹1.5 lakh a year. And the investors can only contribute to the account once in a month.
- PPF accounts will now open by using Form-1 instead of Form-A. Investors have to submit Form-4 instead of Form-H to apply for the extension of the PPF account after 15 years, but note that the form must be submitted before one year from the date of maturity.
- Now PPF account holders can continue their accounts without depositing money, thus it is not necessary for you to deposit money in the account. And if the account gets extended after maturity, then the withdrawals are allowed only for once in a year.
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- The interest rate has now been cut to half from 2 per cent to one per cent, if a person avails a loan against the deposits made in the PPF account. Note that after repaying the principal amount, interest has to be paid in more than two instalments. And the interest will be calculated from the 1st of every month.
- If an investor wants to avail of the loan against the PPF account, then 25 per cent of the balance available in the PPF account can be allotted and up to two years before the date of application.