Key Points
The Department of Post has made some changes in the premature closure rules of the Public Provident Fund (PPF) account..
According to the PPF rules, an account holder can submit request for the premature closure of his account or the account of a minor or person of unsound mind for whom he is the guardian on any of the following grounds:..
Provided further that on such premature closure, interest in the account shall be allowed at a rate which shall be lower by 1% than the rate at which interest has been credited in the account from time to time since the date of opening of the account, or the date of extension of the account, as the case may be..
In the Public Provident Fund Scheme, 2019, in paragraph 13, in the second proviso, for the words or the date of extension of the account, the words or from the date of commencement of the current block period of five years shall be substituted...
This means that the interest will be allowed in the account at a rate that will be 1% less than the interest that has been periodically credited to the account from the date of commencement of the current block period of five years...
