How to Withdraw PPF Amount Online?

PPF (Public Provident Fund) is a secure long-term investment option offered by the Government of India. The scheme promotes small savings and offers income tax exemptions on the investment. In this article, we will walk you through the straightforward steps for PPF withdrawal online.

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About PPF Account Online

The PPF account can be opened online or offline. Most designated banks and post offices offer an offline account opening facility. The following are the key features of an online PPF account:

  • High Returns: PPF accounts offer an attractive return rate of interest of 7.1% per annum for the October – December quarter.

  • Long-term investment horizon: PPF accounts have a lock-in period of 15 years.

  • Tax Benefits: PPF provides EEE (Exempt-Exempt-Exempt) tax status. The investment, interest earned, and maturity amount are all exempt from income tax.

  • Flexible Contribution: Investors can deposit a minimum of Rs. 500 and a maximum of Rs. 1.5 lakhs per financial year.

  • Loan Facility: After the completion of the third financial year, account holders can avail of a loan against their PPF balance.

  • Partial Withdrawal: Partial withdrawals are allowed from the 7th year onwards.

  • Extension of Tenure: At maturity, investors can extend the PPF account in blocks of 5 years indefinitely, maintaining the tax benefits.

Eligibility Criteria for PPF Withdrawal Online

You have the flexibility to make partial or complete withdrawals from your PPF account based on your specific circumstances. 

Additionally, you can choose to close your PPF account early or extend it after maturity to align with your requirements. 

The specific criteria to fulfill for online PPF withdrawals are outlined below:

Withdrawal Category Eligibility Conditions Reasons of Withdrawal Percentage of Withdrawal 
On Maturity After 15 years  If required 100% PPF fund amount
Partial Withdrawal From 7th policy year If required 50% of the balance PPF fund amount
Premature Closure On completion of 5 years For medical, education, etc. 100% PPF fund amount

PPF Withdrawal Online on Maturity

Step 1: Download the PPF Withdrawal Form (Form C) online from your bank's website. The same form is used for PPF partial withdrawal. 

The Form C or PPF partial withdrawal form consists of three sections:

  • Declaration Section: Mention the PPF account number, the amount of money to be withdrawn, and the number of years the account is active.

  • Office-use Section: Mention details like account opening date, current balance, previous withdrawal date (if applicable), total withdrawal made from the account, etc.

  • Bank details Section: Enter the bank account details for crediting. 

Step 2: Enclose a copy of the PPF passbook along with Form C.

Step 3: Submit the same at your respective bank branch.

At the moment, the banks are not fully automated with the PPF withdrawal online process. Thus, you may have to visit the bank branch personally after downloading the Form C online. 

Partial Withdrawal of PPF Amount Online

PPF Partial withdrawals are allowed from the 7th financial year, that is, after the completion of 6 years. 

PPF partial withdrawal can be made prematurely, up to a maximum of 50% of the amount that is accumulated in the account at the end of the 4th year (preceding the year in which the amount is withdrawn or at the end of the preceding year, whichever is lower). Also, only one withdrawal in a financial year is permitted.

Steps to Follow for Partial Withdrawal of PPF Amount Online:

If you want to withdraw some or all of the money from your PPF account, follow these simple steps:

Step 1: Log in to your internet banking.

Step 2: Download the application form C. 

Step 3: Fill out the form with the necessary details.

Step 4: Submit the filled application online or visit the bank's branch or post office to apply offline.

This straightforward process allows you to manage your PPF account withdrawals easily.

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Form C in PPF Withdrawal Online

To access your PPF funds, you need to complete Form C, which consists of three sections requiring specific details:

Section 1: 

The Declaration section is the initial part. Provide your PPF account number, desired withdrawal amount, and the opening date of your PPF account.

Section 2: 

This section is designated for official use. Bank or post office officials fill in details such as:

  • Date of PPF account opening

  • Previous withdrawal date (if any)

  • The total available withdrawal amount

  • Sanctioned withdrawal amount

  • Approving official's date and signature

Section 3: 

The final part is for entering bank details where you want the withdrawal amount credited. This could be your savings account in the same bank or a different one. Verify these details to ensure the correct crediting of the amount. To complete the documentation, attach a copy of your PPF passbook along with the application.

Extension of PPF Account on Maturity

After your PPF account matures, you have two choices:

  • Withdraw all the invested money, or

  • Extend the term for another block of five years

If you do not withdraw the amount or request an extension, the bank will automatically extend it for 5 years unless you specify otherwise. During this automatic extension, interest on your funds will continue to grow, compounding each year if there are no withdrawals. 

You can choose to extend your PPF account for the next term with or without making contributions.

  1. PPF Extension without Contributions: 

    After maturity, you can keep your PPF account active without adding more money. Your total savings will keep earning interest until you decide to withdraw everything.

  2. PPF Extension with Contributions: 

    You have the option to keep your PPF account active after maturity and continue making contributions. To do this, submit Form H within a year of the original maturity date. If you do not submit Form H, you will not earn interest on new deposits, and the amount may qualify for tax deductions under Section 80C of the Income Tax Act.

PPF Withdrawal Online After Extension Without a Contribution

Once you have extended your PPF account in a block of 5 years, you are eligible to withdraw a certain amount up to its balance. Only one withdrawal is allowed under PPF withdrawal rules during the extended period. Also, there is no cap on the withdrawal amount.

For Example:

If you had opened a PPF account in 2005 and in 2020, it accumulated a balance of Rs. 10 lakhs. Thereafter, you decided to extend it from 2020 to 2025 without contribution. In this case, you will only be allowed a PPF withdrawal of an amount up to Rs. 10 lakhs.

PPF Withdrawal Online After Extension With a Contribution

If you opt for an extension of your PPF account with contribution, you can withdraw 60% of its accumulated balance at the time of an extension. You can only make one withdrawal per year over an extended period. 

For Example:

If you had opened a PPF account in 2005, it would have accumulated Rs. 10 lakhs in 2020. Now, you opted for an extension to 2025 with contributions. This would allow you to make withdrawals each year during the extension period. Additionally, you cannot withdraw more than 60% of the balance amount, i.e., Rs. 6 lakhs.

Closure of PPF Account on Maturity

One can close a PPF account after completing 15 years from the date of opening the account. The procedure to close a PPF account is given below:

Step 1: Fill out Form C and attach your PPF passbook.

Step 2: Submit this to the concerned Post Office/bank branch where the account is held.

Step 3: Your application will be processed, and the account will be closed. You will receive the payment in your savings account linked to the PPF account.

Premature Closure of PPF Account

You also have the option to close your PPF account prematurely after 5 financial years under some specific grounds:

  • In financial need due to medical emergencies

  • For funding your child's higher education

Penalty on Premature Closure of PPF Account:

If you decide to close your PPF account before its maturity, a penalty will be imposed on your investment. This penalty involves a 1% reduction in the interest earned for the period the account has been held. 

For Example: If you have earned 8% annual interest over five years in your PPF account, opting for premature closure will result in the interest rate being lowered to 7% for each of those years.

Conclusion

Online PPF withdrawal offers a convenient and efficient way for you to access your funds. The digital platform streamlines the withdrawal process, providing a user-friendly experience. With the ease of online transactions, you can seamlessly manage your Public Provident Fund, ensuring quick and hassle-free access to your savings.

Frequently Asked Questions

  • Is it possible to withdraw PPF online?

    No, it is not currently possible to withdraw PPF online. You will need to visit the bank branch where you have your PPF account and submit a withdrawal form or Form C. The Form C can be downloaded from the bank's website or obtained from the branch.
  • Can I withdraw 100% from PPF?

    No, you cannot withdraw 100% of your PPF corpus before the completion of the 15-year maturity period. However, you can withdraw up to 50% of the amount that has accumulated in your PPF account after 7 years, starting from the end of the financial year in which you made your first contribution.
  • Can PPF payment be made online?

    Yes, PPF payment can be made online through various methods:
    • Net Banking

    • Mobile Banking

    • NEFT (National Electronic Funds Transfer)

    • Standing Instructions

    • ECS (Electronic Clearing Service)

  • Can we withdraw PPF for a home loan?

    Yes, you can withdraw PPF for a home loan, but the condition is that you can withdraw up to 25% of the accumulated corpus in your PPF account for purchasing a residential house for yourself, your spouse, or your parents.
  • Is PPF withdrawal easy?

    Here is a step-by-step guide on how to withdraw PPF funds:

    Step 1: Obtain Withdrawal Form

    Step 2: Gather Required Documents

    Step 3: Fill Out and Submit the Withdrawal Form

    Step 4: Processing of Withdrawal Form and Transfer of Funds

    Step 5: Check Withdrawal Status

  • What documents are required for PPF withdrawal?

    The documents required for PPF withdrawal are as follows:
    • PPF Account Passbook or Statement

    • Identity Proof (PAN Card, Aadhaar Card, Driving License)

    • Address Proof (Electricity Bill, Telephone Bill, Bank Statement)

    • (Optional) Authorization Letter (if applying on behalf of someone else)

  • How can I transfer money from my PPF account to my post office online?

    To transfer money from your PPF account to your post office online, you can follow these steps:

    Step 1: Link your PPF account to your post office savings account

    Step 2: Create an account on the India Post Payments Bank (IPPB) website:

    Step 3: Log in to your IPPB account: Once you have created an account, you can log in to us

    Step 4: From your IPPB dashboard, select the "Transfer" option. Then, choose "PPF to Savings Account" as the transfer type.

    Step 5: Enter your PPF account number, your post office savings account number, and the amount you wish to transfer.

    Step 6: Review and confirm the transfer

    Step 7: Receive confirmation

  • Is it possible to pay PPF online in SBI?

    Yes, it is possible to pay PPF online in SBI using net banking, SBI QuickPay, SBI Anywhere Pay, NEFT, and ECS.
  • How to withdraw PPF?

    For PPF withdrawal online, follow the below steps:
    Step 1: Download the PPF Withdrawal Form (Form C) online from your bank’s website.
    Step 2: Enclose a copy of the PPF passbook along with Form C.
    Step 3: Submit the same at your respective bank branch
  • How to close a PPF?

    One can close a PPF account after completing 15 years from the date of opening the account. The procedure to close a PPF account is given below:
    Step 1: Fill up Form C and attach your PPF passbook.
    Step 2: Submit this to the concerned Post Office/bank branch where the account is held.
    Step 3: Your application will be processed, and the account will be closed. You will receive the payment in your savings account linked to the PPF account
  • What is the rule for PPF partial withdrawal?

    PPF Partial withdrawals are allowed from the 7th financial year. One can withdraw prematurely, up to 50% of the amount accumulated in the account at the end of the 4th year. Also, only one withdrawal in a financial year is permitted.
  • Can I do PPF partial withdrawal after 5 years?

    No. PPF partial withdrawals are allowed only from the 7th financial year.
  • How to close PPF account before maturity?

    There is also the option to close your PPF account prematurely after 5 financial years under some specific grounds. However, the procedure to close the count remains the same.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
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