The Central Government in exercise of the power conferred by sub-section of (4) of section 3 of the Provident Fund Act, 1968 (23 of 1968), makes the Public Provident Fund (Amendment) Scheme, 2016 in order to amend the Public Provident Fund Scheme, 1968.
In the Public Provident Fund Scheme 1968, in Paragraph 9, for sub-rule 3(C), the following sub-paragraph is substituted to:
(3C) A subscriber is permitted premature closure of his accounts and of that of a minor of whom he is the guardian, by sending a written application to the accounts office, on the following grounds namely:—
- that the amount is required for the treatment of serious ailments or life threatening diseases of the account holder, spouse or dependent children or parents, on production of supporting documents from competent medical authority;
- that the amount is required for higher education of the account holder or the minor account holder, on production of documents and fee bills in confirmation of admission in a recognized institute of higher education in India or abroad:
Provided that the premature closure is allowed only after the account has completed five financial years and further provided that premature closure shall be subject to deduction of such amount which shall be equal to one percent less interest on the interest rates as applicable from time to time on the deposits held in the account from the date of opening of the account till the date of such premature closure.
– MINISTRY OF FINANCE
(Department of Economic Affairs)