Finance ministry has decided the terms for premature PPF withdrawal

The Finance Ministry today has said that subscribers of the Public Provident Fund (PPF) can prematurely close their deposit scheme once they have completed five financial years, citing reasons like higher education or expenditure towards medical treatment.

"A subscriber shall be allowed premature closure of his account or account of a minor of whom he is the guardian on ground that amount is required for treatment of serious ailments or life-threatening diseases of the account holder, spouse or dependent children on production of supporting documents from competent medical authority," said a notification from the Finance Ministry.

It added that the allowance will be applicable to the requirement of higher education of the account holder or the minor account holder when the documents and fee bills are produced, confirming admission in a recognised institution in India or abroad.

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