the primary view of the prudent investor is to ensure that the invested capital remains
safe. The PPF scheme offers total safety to the amount invested. The PPF scheme also
offers easy liquidity in the form of loans and withdrawals.
Rate of interest : From 01.04.1986 to
15.01.2000 to 28.02.2001.............................. 11%
01.03.2001to 28.02.2002 ............................. 9.5%
01.03.2002 to 28.02.2003 ..................................9%
- Only one account can be opened in the name of a person.
- Twelve deposits can be made in a financial year.
- Minimum deposit in a year is Rs.
500/-, and Maximum is Rs. 70,000/-.
- Loan is admissible from the third year. Loan amount is limited
to 25% of balance held at the end of two years preceedings.
- Fresh loan is not allowed when previous loan or interest
thereof is outstanding.
- Interest is charged at the rate of 1% if repaid within 36
months and at 6% on the outstanding loan after 36 months.
- Withdrawal is permissible from seventh financial year from the
year of opening, limited to one in a financial year.
- Amount of withdrawal is limited to 50% of balance at the end
of the fourth preceeding year less amount of outstanding loan or 50% of balance at the end
of immediate preceding year of withdrawal less amount of outstanding loan, if any
whichever is less.
- A subscriber can close the account in the 16th financial year.
The account can also be continued with or without subscription, for further blocks of
" The subscription
made to the fund on or after the 1st day of march 2003 and
at the credit of the subscriber bear
interest at the rate of 8% per annum."
3(a) All the KVPs from the
post offices will be issued after entries are made on them in
manuscript or by means of rubber stamps as " Maturity period
revised as seven years and eight months see Notification GSR No.
164(E) dated 1.3.2002". Further supply of KVPs by the head
Offices to post offices under their jurisdiction
will be made only after the above endorsement on the certificate
has been made.
(b) Similarly, the revised values for
premature encashment should be made on the back of KVPs before
(c) All NSCs shall be issued after
changing the number of Notification and date printed therein to
G.S.R. 163(E) dated 1.3.2002 on the front side beside changing the
sum mentioned therein, both in figures and words as indicated
below depending on their denomination.
NSCs of Denomination
Correction in ink showing the revised rates in the TD, RD, MIAS,
NSS-1992 and PPF pass books should be made before issue.
4. The Heads of circles should
ensure that an officer in each circle's HO and regional office and
the postmaster in each PO is personally made responsible to check
that aforesaid changes are mentioned at all relevant places, in
the pass books and also on the format of the Patra.
5. If any new account has been opened
or any fresh KVP/NSC has been issued to the depositor,
during the suspended work period from 01.03.2002 till the normal
SB works are resumed, the postmaster should address the depositor
to produce the pass book and KVP/NSCs in the post office of issue
to have the necessary changes made
in them. Heads of circles should also give wide publicity to this
among the public.
6. The change in interest rates in
all schemes be prominently displayed on the notice board of each
7. Deposits in POTD,RD,MIAS and
NSS-1992 and the sale of KVPs and NSCs suspended from 01.03.2002
will be resumed immediately but not later than 07.03.2002 in an
8. The receipt
of this communication and intimation about resumption of the
suspended works by 7th March 2002, may please be sent immediately.