Premature closure option for Ponmagan Podhuvaippu Nidhi scheme
Posted on: 18/Feb/2016 12:17:22 PM
The Department of Posts launched Ponmagan Podhuvaippu Nidhi last year. The department has re-launched its Public Provident Fund scheme into Ponmagan Podhuvaippu Nidhi for male children.
Under this scheme, accounts can be opened for children aged less than 10 years with the help of guardians, while those above 10 years can open accounts on their own. There is no age limit for opening an account under this scheme. One of the advantages of Ponmagan Podhuvaippu Nidhi was that the minimum amount to open the account was Rs. 100. The minimum deposit period is 15 years and deposits ranging from Rs. 500 to a maximum of Rs. 1.5 lakh can be made in a year.The interest for the current year is 8.7 per cent and interest earned would be exempted from income tax. Loan and withdrawal facilities are available in this scheme.
Now The Government has relaxed the 15-year-depositstatutory scheme Ponmagan Podhuvaippu Nidhi (PPF) by allowing premature closure in genuine cases. The Closure option can be availed in genuine cases like cases of serious ailment, higher education of children etc,.for the accounts having completed five years from the date of opening. Necessary amendments in the relevant rules are expected shortly.
