PPF Relaxations

The government may reduce the lock-in period for Public Provident Fund (PPF) accounts and may also allow an early withdrawal in case of financial emergencies. The government plans to bring all small savings schemes under one umbrella law as proposed in this year’s Union Budget. It involves putting in place the Government Savings Promotion Act and repealing the Public Provident Fund Act, 1968, the Government Savings Certificate Act, 1959, and the Government Savings Bank Act, 1873. The interest rate offered by PPF is linked with yields on government bonds with a small markup. The rates are subject to revision every quarter. The latest is 7.6 per cent for the current quarter.