Govt okays premature withdrawals from PPF to pay for education, medical treatment

The Ministry of Finance has amended the Public Provident Fund Scheme 1968 to make way for premature withdrawal from and closure of a PPF account.

According to the Provident Fund (Amendment Scheme), 2016, account holders can now withdraw money from their PPF account after it has completed atleast five years, to pay for medical treatment or for the purpose of higher education. 

PPF accounts have a tenure of 15 years and so far, withdrawal of before maturity wasn't allowed.

Under the amendment, it says, " A subscriber shall be allowed premature closure of his account of the account of a minor of whom he is the guardian, on a written applicationto the Accounts Office, on any of the following grounds"

1) For the treatment of serious ailments or life threatening diseases of the account holder, spouse or dependent children or parents

2) For higher education of the account holder of minor account holder.