PPF, Sukanya Samriddhi scheme deposit rules eased. Explained in 10 points


  • Govt eases norms for PPF and Sukanya Samriddhi account holders due to coronavirus lockdown
  • The government has also eased account extension rules for PPF accounts that matured on March 31, 2020

In view of the lockdown due to the coronavirus outbreak, the government has eased deposit rules for some small savings schemes including Public Provident Fund (PPF) and Sukanya Samriddhi scheme. This is applicable for deposits that could not be made for FY 2019-20 due to lockdown. The subscribers of PPF, Sukanya Samriddhi accounts can however continue to make deposit for FY 2020-21 in the usual manner. The government has also eased account extension rules for PPF accounts that matured on March 31, 2020.


Here are 10 things to know about new PPF, Sukanya Samriddhis rules:

1) To keep these accounts active, the subscribers are required to make some specified deposit in a year. Otherwise penalty is charged. According to the new guidelines, PPF, Sukanya Samriddhi and Post Office Recurring Deposits accounts in which mandatory minimum deposit was not made up to 31st March, 2020, will not attract any penalty or revival fee if such deposits are made up to 30th June.

2) For this purpose, the subscriber will have to give an undertaking to the account office that the maximum deposit ceiling applicable to PPF, Sukanya Samriddhi will not be breached. For example, a depositor can deposit a maximum of ₹1.5 lakh in his PPF account in a financial year.

3) If the deposit limit is breached, then the excess deposit will be treated as irregular and will be returned without interest.

4) The subscribers will have to deposit the amount for FY 2019-20 and FY 2020-21 separately in their accounts.

5) However, default fee will be charged for defaults pertaining to financial years other than FY 2019-20.

6) However, it said, interest will be applicable from the actual date of deposits in PPF & Sukanya Samridhi Accounts

7) For the purpose of deciding withdrawal/loan from PPF account, the outstanding balance as on 31st March will be considered.

8) All those PPF subscribers, whose accounts matured on 31st March 2020 (including one year window for extension), can now be extended up to 30th June.

9) For account extension, PPF subscribers will be allowed to submit duly filled signed copy of form of extension through registered email id.

10) But the original copy has to be submitted once the lockdown is lifted.


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