Question
Download Solution PDFWhich of the following statements about the Public Provident Fund (PPF) is incorrect?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is NRIs are eligible to open new PPF accounts.
In News
- DEA issued 6 new rules for PPF, Sukanya Samriddhi Yojana, and other small savings schemes, effective from 1st October 2024.
Key Points
- NRIs are not eligible to open new PPF accounts (existing accounts opened before becoming NRI can continue until maturity).
- PPF has a 15-year lock-in period, extendable indefinitely in 5-year blocks.
- Partial withdrawals are permitted from the 7th financial year onward.
- The current PPF interest rate is 7.1% (Q3 2024), revised quarterly by the government.
Additional Information
- New Rules (Effective 1st Oct 2024):
- Mandatory Aadhaar linkage for all small savings schemes.
- Revised premature closure rules for PPF (allowed only after 5 years under specific conditions).
- PPF Features:
- Tax benefits under Section 80C; interest and maturity proceeds are tax-free.
- Minimum annual deposit: ₹500; maximum: ₹1.5 lakh.
- Other Small Savings Schemes:
- Sukanya Samriddhi Yojana (SSY), NSC, KVP, etc., also covered under the new rules.
Last updated on Jun 30, 2025
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