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Preclosure allowed in PPF schemes now in Post offices

With the PPF (Public Provident Fund), recently launched after modifications as Ponmagan Podhuvaippu Nidhi, is gaining more attention, the postal department has relaxed some of the norms for the scheme.

Very Soon, The depositors will be having the option of closing the deposit scheme after completing five years for specific reasons such as children’s higher education or expenditure towards medical treatment.

In the last 6 months alone, nearly Twenty Thousand Public Provident Fund accounts have been opened in Chennai city. The scheme has nearly 1 lakh and 21 thousand customers so far in the region.

Earlier to this , the depositor can take loans against PPF or partially withdraw in the 7th year of the scheme.

Now, premature closing of the deposit is allowed. Officials of the postal department said the scheme, which does not involve any age limit, can also be opened in the name of children through their guardians. Depositors could save from Five Hundred Rupees to Rs.1,50,000/- in a year for which an interest of 8.7 % is provided.

However, the Tamil Nadu circle has only 1,78,000 PPF accounts of which a major chunk has been opened in the Chennai region. Sources said the long-term savings scheme had not reached the rural and suburban areas. Though the Union government has decided to recalibrate interest rate of small saving schemes from April 1, depositors may enjoy the same interest rate for saving in PPF.

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