How to Make a Partial Withdrawal from a PPF Account?

When it comes to saving for the long term, the Public Provident Fund (PPF) is one of India’s most popular investment options. With its tax-free returns and government-backed security, PPF offers a reliable means of building wealth over 15 years. But what if you find yourself in a situation where you need access to some of your funds before maturity? This is where understanding how to make a partial withdrawal from a PPF account becomes essential.

In this blog, we will understand the details of PPF premature withdrawal rules—so you can make informed decisions about accessing your savings. Whether you’re dealing with an emergency or an important life event, knowing how to navigate the PPF premature closure rules can save you a lot of stress.

How to Make a Partial Withdrawal from PPF Account?

Step 1: Obtain Form C

• To initiate a partial withdrawal from PPF account, you must fill out Form C.
• You can download it from your bank’s website or collect it from the nearest branch.

Step 2: Fill Out Form C
Form C is divided into three sections:

a. Section 1 (Account Details):

• Enter your PPF account number, the amount you wish to withdraw, and the duration your account has been active.
• If withdrawing from a minor’s account, mention the minor’s name in this section.

b. Section 2 (Bank Official Use):
This section will be completed by the bank and includes:

• Date of PPF account opening.
• Total available balance in the account.
• Details of prior withdrawals, if any.
• Amount permissible for withdrawal as per PPF partial withdrawal rules.
• Approval and signature of the bank official.

c. Section 3 (Applicant’s Declaration):

• Sign the form, acknowledging the amount withdrawn or received.

Step 3: Attach Necessary Documents

• Enclose your PPF passbook along with the completed Form C.
• Affix a revenue stamp on the form and sign it.

Step 4: Submit the Form

• Submit the filled form and documents to the bank where your PPF account was opened.

Step 5: Receive Funds

• The approved withdrawal amount will be credited directly to your savings account linked to the PPF account.
• Alternatively, you may request a demand draft if preferred.

PPF Partial Withdrawal Rules

After your Public Provident Fund (PPF) account has been active for at least 5 years, you can make a partial withdrawal. This means you can take out a part of the money you’ve invested while keeping the account open to continue earning interest.

• How much can you withdraw?
  You can withdraw up to 50% of the balance at the end of the 4th year before the withdrawal. For example, if you want to withdraw money in 2023, you can only withdraw up to 50% of what was in your account at the end of 2019.
• How many times can you withdraw?
  You can only make one withdrawal per year.

PPF Premature Withdrawal Rules 

You can make a premature withdrawal from your Public Provident Fund (PPF) account, but only under specific circumstances such as medical emergencies, higher education expenses, or a change in residency status. However, this can only be done after 5 years of holding the account. It’s important to know that premature withdrawals come with some conditions, including a potential penalty or loss of interest.

• Conditions for Premature Withdrawal:
  • Medical emergencies
  • Higher education expenses
  • Change in residency status
• Interest Rate:
  If you withdraw early, the interest rate on the withdrawn amount will be 1% lower than the normal interest credited to your PPF account.

PPF Withdrawal after Extension without Contribution

When you extend your PPF account after the initial 15-year term, you are allowed to continue the account for an additional 5 years. However, there are specific rules governing PPF withdrawal after extension without contribution that are important to know.

1. Withdrawal Limits: After the extension, you can only withdraw up to the balance in your PPF account at the time of extension. For example, if your PPF balance is ₹5 lakh at the time of extension in 2025, this becomes the limit for withdrawals. You can only withdraw from this balance, even if the account grows during the extension period.
2. One Withdrawal Per Year: During the extended period, you are allowed only one withdrawal per year. This is a key restriction, so planning your withdrawals accordingly is crucial.
3. No Contributions Necessary: The PPF premature withdrawal rules allow you to keep the account active without making further contributions during the extension period. However, if you choose to contribute, it will further increase the balance in your account.
4. Premature Closure Rules: If you decide to close the PPF account prematurely after the extension, you can do so only under specific circumstances, and it may impact the interest rate applicable on your balance.

PPF Withdrawal After Extension with Contributions

After completing the initial 15-year tenure of a Public Provident Fund (PPF) account, you can extend the account in blocks of 5 years with or without contributions. Here’s what happens when you continue contributing during this extension period:

1. Contribution Continuation: If you choose to continue contributing after the 15-year period, you can withdraw up to 60% of the balance at the time of extension during the next 5-year extension period.
2. Withdrawal Limit: You can only make one withdrawal per year during the extension period. This helps you manage your funds better while still allowing you to benefit from the compounding effect of the remaining balance.