Hey!!! Public Provident Fund scheme of SBBJ was introduced by Central Government in 1968.

The Scheme enables the members of the public to make contributions to the Fund and obtain Income Tax rebate under the relevant provisions of the Income Tax.

Eligibility Criteria:

-Individuals

-Individuals on behalf of a minor

Minimum / Maximum Investment

Minimum 500/- per annum in multiples of 5/-
Maximum 100,000/- per annum

Duration

-15 years

-Can be extended for one or more blocks of 5 years

-Account can be discontinued but repayment of subscriptions along with interest only after 15 years.

Rate of Interest

8.80 % per annum


Loans

Loan upto 25% of balance at the end of first financial year from third to sixth year

Second loan can be taken on full payment of first loan.



Withdrawals

Only one withdrawal allowed during any one year from sixth year. Withdrawal limited to 50% of the balance at the credit at the end of 4th year preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.

The account extended beyond 15 years; partial withdrawal allowed up to 60% of the balance to the credit at the commencement of the extended period.


Tax Benefits

-Benefit available u/s 80 C of the I.T. Act

-Interest totally exempt from Income Tax.

-Amount standing to the credit is fully exempted from Wealth Tax.



Other Facilities

-Subscription in one or more maximum 12 installments.

-Nomination available in the name of one or more persons.

-Nominee can not continue account of the deceased subscriber in his/ her own name.

-An account may be transferred at the request of the subscriber free of charge by one branch of State Bank of India or its Associates to Head Post Office or vice versa.

-Premature closure of a PPF account on grounds of genuine hardship could be considered only after the expiry of five years from the end of the year in which the account was opened.

-The subscriber may discontinue his account anytime after joining the fund. The repayment of the subscription with interest will be made only after 15 years form the end of the financial year in which the account was opened.

-Discontinued account can be revived on payment of 50/- per year along with arrears of subscription of 500/- per year.