Full Form of PPF

What is PPF?

Public Provident Fund (PPF) is a popular long-term savings scheme introduced by the Government of India in 1968 under the Public Provident Fund Act. It was launched to mobilize small savings and provide a secure investment avenue for citizens. The scheme encourages disciplined savings with a tenure of 15 years, extendable in 5-year blocks. The interest rate is revised by the Ministry of Finance every quarter and is currently 7.1% per annum (as of 2025). PPF enjoys the EEE (Exempt-Exempt-Exempt) tax status, making it one of the most tax-efficient instruments in India. Contributions up to Rs. 1.5 lakh per year qualify for deduction under Section 80C, the interest earned is not taxable, and the maturity proceeds are also tax-free. An account requires a minimum deposit of Rs. 500 annually; failure leads to penalty and revival charges. Partial withdrawals are allowed from the 7th year onwards. PPF accounts can be opened at designated post offices, public sector banks, and certain private banks. The facility of loan against PPF balance is available from the 3rd to 6th financial year. In the context of exams like UPSC, SSC, and banking recruitment tests, PPF is a frequently asked topic under financial awareness, especially its features, interest rate, and tax benefits, making thorough knowledge essential.

PPF का फुल फॉर्म

Example

I opened a PPF account at my nearest post office to save tax under Section 80C and earn a guaranteed 7.1% interest.

PPF — frequently asked questions

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