Updated on October 4, 2023
From the 7th financial year onwards, you can make partial withdrawals from your PPF account. The amount of withdrawal is limited to 50% of the balance at the end of the fourth year, or 50% of the balance at the end of the immediate preceding year, whichever is lower.
Rules of PPF withdrawal
Withdrawal from a Public Provident Fund (PPF) account is governed by certain rules. Here are the key points to note:
Lock-in period: The lock-in period for a PPF account is 15 years. This means you cannot withdraw the entire amount before this period.
Partial withdrawals: Partial withdrawals from the PPF account can be made once per year, starting from the 7th year of opening the account. The maximum amount that can be withdrawn is the lower of:
a. 50% of the balance at the end of the fourth year, counting from the year of withdrawal; or
b. 50% of the balance at the end of the immediate preceding year.
Complete withdrawal: After the completion of the 15-year lock-in period, you can withdraw the entire amount in your PPF account including the interest accrued.
Extension with or without contribution: After the lock-in period, you can extend the PPF account for another block of 5 years. During this extension period, you can make further contributions and are also allowed to make partial withdrawals. If you choose to extend your account without further contributions, you can withdraw any amount without restrictions, but only once per financial year.
Premature closure: Premature closure of a PPF account is allowed under specific circumstances such as a serious ailment or higher education of the account holder. This can only be done after the account has been operational for at least five years.