Assume you opened a PPF account in 2007 and it matured in April this 12 months (after 15 years), on the other hand, as a substitute of shutting down the account, you want to proceed with it. In instances the place the PPF account has matured, an account holder has 3 possible choices as in keeping with the PPF scheme laws, 2019.
A) Shut the account and withdraw complete proceeds
As soon as their PPF account attains adulthood, a person can make a choice to near it. Then again, they should take into account that the date of opening of PPF account won’t decide the adulthood date. The PPF scheme laws 2019 state that the adulthood date of PPF account is after 15 years from the tip of the monetary 12 months through which preliminary subscription used to be made.
Instance – If a person opened a PPF account on July 20, 2009, the account will mature after 15 years from the tip of the monetary 12 months through which account used to be opened as in keeping with the principles. The adulthood date of PPF account might be April 1, 2024.
In case the PPF account holder needs to near their account, they’ll must post an account closure shape.
B) Prolong the account with out recent deposits
Another choice for an investor is to proceed their PPF account after adulthood with out depositing any recent cash. The account may also be persisted for any duration. Additionally, the account holder can withdraw the volume once a year from their account.
It can be famous that if an investor opts to proceed their PPF account with out new deposits for greater than a 12 months, they may be able to’t trade it again to the account with new deposits.
C) Prolong the account with recent deposits
The 3rd possibility for traders with matured PPF accounts is to increase it with recent deposits. The account may also be prolonged for a block of five years. It may be prolonged for a number of five-year blocks. Then again, as soon as decided on, the person can’t withdraw the request later.
For this, the investor must intimate the financial institution/put up workplace prior to the expiry of 1 12 months from the adulthood. If the depositor fails in doing so, they may be able to make no deposits in that account. Underneath this feature, the account holder can withdraw most 60 in keeping with cent of the steadiness in a single block of 5 years.
The account shall proceed to earn passion until it’s closed and the holder could make one withdrawal once a year from the account.