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When can the account be closed?
You are allowed to close the PPF account prematurely in certain special circumstances. But for this your account should be at least 5 years old. You can take PPF loan before completion of 5 years, it cannot be closed. Also, you must have one of the prescribed reasons for premature account closure. Know the terms-
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- If there is a medical emergency and you need money for the treatment of yourself or a family member.
- If you need money for your own higher education or your child’s higher education.
- Even if the account holder dies, the account can be closed before maturity. The five year rule does not apply in this situation.
- If you withdraw the money before the account matures, the money will be refunded minus 1% interest.
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Written application required
For premature closure of PPF account you have to submit a written application at the home branch of the bank account. In this application you have to give the reasons why you are closing the account. Meanwhile you have to attach some documents along with the application. It should have a copy of PPF passbook. Also if you are closing the account for treatment of illness, documents issued by a medical officer will be required.
If you are closing the account for higher education, fee receipts, book bills and documents confirming admission will be required. A death certificate is required to close the account if the account holder dies. Account closure application is accepted after document verification. After this your account is closed but the penalty amount is deducted.