Eligibility for PPF Closure
- A PPF account matures after 15 years from the date of opening. You can withdraw the full amount after this period.
- Premature closure is allowed after 5 years (from the date of opening) under specific conditions.
Types of PPF Closure
1. Regular Closure (After 15 Years)
If your PPF account has completed 15 years, follow these steps:
- Visit the Bank/Post Office where you hold your PPF account.
- Fill out Form C (PPF withdrawal form).
- Submit ID Proof & Passbook:
- Aadhaar, PAN, or other valid ID proof.
- PPF passbook for verification.
- Provide Bank Account Details where the maturity amount will be credited.
- Wait for Processing: It usually takes 7-10 working days for closure and fund transfer.
2. Premature Closure (After 5 Years)
You can close your PPF account before 15 years if any of the following apply:
- Medical Emergency (Self, spouse, dependent children, or parents).
- Higher Education Expenses (Self or children).
- Change in Residency (If you become an NRI).
Process for Premature Closure
- Fill Form C and select the reason for closure.
- Attach Supporting Documents:
- Medical bills (for medical emergencies).
- Admission letter/fee receipt (for education-related closure).
- Copy of passport & visa (for residency change).
- Penalty: A 1% deduction on the interest earned applies.
- Processing Time: It may take 10-15 working days.
Important Points to Note
✔ PPF cannot be closed online; you must visit the branch in person.
✔ If you don't withdraw after 15 years, the account continues in blocks of 5 years unless closed.
✔ NRIs cannot open new PPF accounts but can continue an existing account until maturity.
✔ Premature closure with 1% interest penalty applies only after 5 years.