Increase in PPF Investment Limit to Rs. 1.5 lakh Notified & Acceptable Now

by Shiv Kukreja on September 1, 2014

in Investments

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at

Starting today, I would like to remind my clients or those investors, who have the habit of depositing their hard earned money in their respective Public Provident Fund (PPF) accounts in the first week of April every year, that now onwards they can use the opportunity of topping up their PPF investments by an additional Rs. 50,000.

Announced in Budget 2014 by the Finance Minister Arun Jaitley, increase in the investment limit of PPF from Rs. 1 lakh to Rs. 1.50 lakh got notified by the Government of India on August 13 and the Reserve Bank of India (RBI) on August 22. Here are the links to their respective notifications:

Ministry of Finance Notification

RBI Notification

The same has now been brought to the notice of all the post offices as well as some of the nationalised/commercial banks which are authorised by the Government and the RBI to open PPF accounts and accept deposits in these accounts.

Nationalised or commercial banks, which have been notified and have started accepting the increased limit of deposits, include State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), ICICI Bank, Axis Bank, Canara Bank, Andhra Bank, Allahabad Bank, Bank of India (BoI), Oriental Bank of Commerce (OBC), Bank of Maharashtra (BoM), Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Syndicate Bank, UCO Bank, Punjab & Sind Bank (PSB), Union Bank of India, United Bank of India, Vijaya Bank, IDBI Bank, State Bank of Patiala, State Bank of Bikaner & Jaipur (SBBJ), State Bank of Travancore (SBT), State Bank of Hyderabad and State Bank of Mysore.

Make PPF deposit between 1st & 5th of a month to earn maximum out of it

As most of the investors know, interest on our PPF deposits gets calculated on the minimum balance lying in the account between 5th day and the last day of a month, it is advisable for an investor to deposit cash in the account between 1st and 5th day of that month or if a cheque is deposited, then it gets cleared on or before 5th day of that month.

Features of Public Provident Fund (PPF)

For those investors, who are yet to open a PPF account, I would like to quickly highlight some important features of this most loved investment:

* A PPF account can be opened by a resident individual in his/her own name or on behalf of a minor of whom he/she is the guardian.

* A PPF account can be opened at a post office or some of the nationalised or commercial banks mentioned above.

* The minimum tenure of a PPF account is 15 years which can be further extended in blocks of 5 years each.

* Though the tenure is 15 years, investors are allowed to have premature withdrawals or avail the loan facility subject to certain terms and conditions.

* Interest Rate on PPF deposits is notified by the Government of India every year and the rate remains fixed for the whole of that financial year. For FY 2014-15, the rate stands at 8.70% per annum compounded annually.

* Investments made in a PPF account qualify for deduction under section 80C of the Income Tax Act, 1961.

* It is one of the only three investment schemes in India which still qualify as Exempt-Exempt-Exempt (EEE) from taxation point of view. The other two being the Employees’ Provident Fund (EPF) and Equity-Linked Savings Schemes (ELSS).

* Non-Resident Indians (NRIs) are not allowed to open a PPF account. Even Hindu Undivided Families (HUFs) are no longer allowed to open it.

With economic growth finally gaining some strength to touch 5.7% in the first quarter of the current financial year, inflation showing early signs of slowing down, global economies consolidating on their recovery path, the Modi government showing some early signs of taking action on its strategies laid down in the first 100 days and the Indian stock markets gaining strength steadily, would you still be investing in PPF or rather invest in ELSS this year to take part in the growth of Indian economy? Please share your views.

{ 56 comments… read them below or add one }

Rohit Agarwal September 1, 2014 at 9:27 AM

Sir I want to open a PPF or a ELSS Monthly SIP for long term 15 years.
which option should i choose for maximum appreciation . ? Your valuble Comparison / guidance can help many of us ..


Shiv Kukreja September 1, 2014 at 12:23 PM

Hi Rohit,
In the long run, equity mutual funds are able to generate relatively superior returns as compared to PPF. So, I would personally go for a monthly SIP in ELSS. ELSS has a shorter lock-in period as well. But, if you don’t want to take any kind of risk, then you should go for PPF.


Rohit Agarwal September 2, 2014 at 11:33 AM

thanks sir .


Shiv Kukreja September 2, 2014 at 11:03 PM

You are welcome Rohit!


harinee September 3, 2014 at 10:00 AM

Any post done on ELSS? Really not aware how is ELSS different from MFs.



Shiv Kukreja September 3, 2014 at 10:56 AM

Hi Harinee,

ELSS is not greatly different from open-ended equity mutual fund schemes. In fact, an ELSS is an equity mutual fund itself which carries a lock-in period of 3 years and provides you tax exemption under section 80C. Rest most of its features are similar to an open-ended diversified equity mutual fund.


Amlan Basak September 1, 2014 at 9:53 AM

Thanks Shiv for the timely post. πŸ™‚


Shiv Kukreja September 1, 2014 at 12:24 PM

You are welcome Amlan! πŸ™‚


harinee September 1, 2014 at 10:05 AM

I would still continue my PPF investments as thats part of the income I would want to have guaranteed returns.


Shiv Kukreja September 1, 2014 at 12:26 PM

Thanks Harinee for sharing your view and preference!


Sundararajan September 1, 2014 at 8:35 PM

Will the maturity exempt from income tax? Please let me know. Thanks,


Shiv Kukreja September 2, 2014 at 10:32 PM

Yes, the interest earned on your yearly investments is completely tax free.


sundararajan September 3, 2014 at 5:50 AM

Thanks Shiv for your prompt reply.


Shiv Kukreja September 3, 2014 at 10:44 AM

You are welcome!


santonu September 2, 2014 at 1:34 PM

GPF for central/state govt employee also qualifies for EEE


Shiv Kukreja September 2, 2014 at 10:35 PM

The term ‘EPF’ broadly includes ‘GPF’, that’s why I did not mention GPF separately. But, thanks for mentioning it here.


Amit September 3, 2014 at 3:15 AM

Anybody in this forum know about the NEFT, Own account transfer limit for SBI? Can I transfer 1.5L from my SBI savings account to PPF account in one transaction(PPF account is linked with SBI savings account)? Can I transfer 1.5 L to my wife’s PPF account from my SBI savings account through NEFT in one transaction?


Shiv Kukreja September 3, 2014 at 10:43 AM

Hi Amit,
Yes, you can transfer Rs. 1.5 lakh to your own PPF account in one transaction. You can also do so to your wife’s savings account. But, I am not sure whether you can transfer the amount to her PPF account or not and even if you can do so, whether SBI will pay interest on that investment or not, as the money is in your name which is getting invested.


Amit September 3, 2014 at 8:17 PM

Thanks for reply, Shiv.
SBI allows to transfer amount to registered PPF account through NEFT. You can add your wife’s PPF account to your savings account as benificiary and make NEFT payments.
I think, it doesn’t matter whose PPF account you have registered with your savings account, once you transfer money to PPF account, SBI will pay interest on that PPF account. I was just not sure about NEFT and own account transfer limit of SBI. Thanks for clarification.


Shiv Kukreja September 4, 2014 at 10:47 AM

Great, thanks!


Ams September 3, 2014 at 11:50 AM

I hold a PPF account in one of the nationalized bank for quite some years now. I want to tranfer that amount to another PPF account, which I wish to open in another bank. As I cannot have multiple accounts, I need advice on same.

I have few questions here:
1. IS it possible to do so ?
2. If Yes, how do I go about doing it ? Should I first open a PPF account in new bank and transfer the amount and then close the other one or how should this work out ?


Shiv Kukreja September 3, 2014 at 11:57 AM

Hi Amit,
You can very well do so. Here is the link to the whole process:


Ams September 3, 2014 at 1:01 PM

Thanks Shiv ! This does help


Shiv Kukreja September 3, 2014 at 3:44 PM

That’s great, you are welcome!


roy cox September 3, 2014 at 10:30 PM

This 5 year block you mentioned after 15 year lock in period? Can one invest money during these 5 year blocks and earn interest on the whole 15+5 years? Or you cannot invest anything beyond 15 years; but can continue to earn interest by not withdrawing money and extend it for 5 year chunks? Pls help


Shiv Kukreja September 4, 2014 at 8:25 PM

Hi Roy,
You can make investments during these 5 years.


Dhaneesh cb October 30, 2014 at 10:13 PM

How many ppf account a person can open in different bank?for eg.if i have an account in Sbi and also i want to open another ppf account in Andhra Bank If it is possible what is my total limit.please reply me.


rajan singh November 7, 2014 at 10:24 AM

Hi Admin,

Post office is denying to deposit extra amount from 1 Lack.

Let me know when i would be able to deposit in PPF account more than 1 Lack.


roopa December 2, 2014 at 3:00 PM

thank you for sharing could you update me more information


Shiv Kukreja December 6, 2014 at 11:14 AM

You can always subscribe to our newsletter Roopa –


niyati January 23, 2015 at 9:46 AM

Can v open two ppf accounts one on husband name and other on wife’s name in one family so that v can deposit more money.


Shiv Kukreja January 29, 2015 at 12:07 PM

Yes, you can do that.


nitesh patel February 20, 2015 at 5:35 PM

can we invest 1.50 thousand in each of my , my wife & other two accounts of my children above 18 (total 6 lac)


Shiv Kukreja February 20, 2015 at 6:37 PM

Yes, you can do that.


nitesh patel February 21, 2015 at 6:16 AM

and weather all amount at maturity is tax free


Shiv Kukreja February 21, 2015 at 11:48 AM

Yes, it would be tax-free at maturity.


rakesh February 24, 2015 at 11:24 PM

Can person hold epf & ppf accounts both?
If holds both account then any conditions?


Shiv Kukreja February 25, 2015 at 12:50 PM

Yes, a person can have both EPF & PPF and there are no conditions/limitations regarding that.


Devak March 22, 2015 at 4:16 PM

I have four children( 3 girls n 1 boy). Please suggest me
1. If i opens 3 accounts in ssa for my 3 daughters from 2015 in my name, then can i open 2 ppf accounts for me and my wife name each.
2.If it is possible then tell me how much amount im investing maximum in a year for 5 accounts?
3. How much amount can i withdraw partially for kids education after 10 years in ppf if i invest yearly rs.150000? then how much i get as maturity amount if i already withdraw 50%after 15 years.


Shiv Kukreja March 23, 2015 at 1:02 PM

Hi Devak,
1. You can open a maximum of 2 SSY accounts for 2 of your daughters. It is not allowed to open 3 SSY accounts unless you have twins or triplets.
2. You can deposit up to Rs. 6 lakh in 4 of your accounts.
3. I won’t be able to help you in this calculation as PPF interest rate varies every year.


Nithya March 23, 2015 at 3:15 PM

Thanks for the reply sir


Shiv Kukreja March 23, 2015 at 3:25 PM

You are welcome!


ALOK SINHA March 22, 2015 at 8:04 PM




Shiv Kukreja March 23, 2015 at 1:05 PM

Hellp Sir,
We do not provide financial advice in such a manner. We do provide investment advice or investment planning services for a fee. Please check this link –


SB April 4, 2015 at 4:04 PM

Hi Shiv,

For salaried employees, can they make investment of 1.5 lacs in PPF on 1st April and get 80C tax benifit? April salary is usually credited on 30th April; is it necessary that PPF investment has to be out of the income earned in the respective financial year?

Thanks in advance for your expert opinion.



Shiv Kukreja April 6, 2015 at 4:05 PM

Hi SB,
There is no restriction as such, you can deposit amount from your previous years’ income source as well.


Imran Vohra April 6, 2015 at 12:28 PM

Can govt. of India employee (joins after 2004) can open PPF account ?


Shiv Kukreja April 6, 2015 at 4:06 PM

Yes, govt. employees can also get a PPF account opened. There is no such restriction.


Imran Vohra April 6, 2015 at 4:43 PM

Thanks Shiv !


Shiv Kukreja April 7, 2015 at 1:10 PM

You are welcome Imran!


manjinder kaur April 15, 2015 at 3:14 PM

I am working in distt defence services welfare office (punjab govt job). I deduct monthly gpf. can i invest in ppf account


Shiv Kukreja June 16, 2015 at 3:56 PM

Yes Manjinder, you can invest in PPF.


Prasad June 15, 2015 at 4:36 PM

Dear sir,
I am thinking of opening an PPF account.
1.what is benifit of ppf account over fixed deposits in banks.
2. Min amount to be deposited monthly or yearly, will it auto deduct from our account atomatically.
3.Will the interest rates for ppf be same as fixed deposits.
4. Max period to continue for ppf, can I withdraw inbetween .


Shiv Kukreja June 16, 2015 at 4:02 PM

Hi Prasad,
1. PPF is tax-free, safe and offer higher rate of interest over FDs.
2. Amount has to be deposited on a yearly basis, but you can make deposits as many times as you want. Auto debit facility is not there, but online transfer facility is there with some of the banks.
3. Not necessarily, it could be more or less than FDs. But, it is tax-free.
4. 15 years is the duration, but you can withdraw money after a mandatory lock-in period of 5 years.


Idrees June 23, 2015 at 1:51 AM

Hi Sir,

As Iam working in Software company i.e. IBM want to know some details for Pension scheme . Please suggest which is the best way to go .

My PF is deducting from my salary and Joined IBM 3years ago. before IBM worked in different company and encashed my PF .

AIM :- Want to get Pension end of the service like 2o,000/- which is the best way to go Kindly suggest on the same . Do not have that much knowledge in financial things.


Shiv Kukreja June 23, 2015 at 5:14 PM

Hi Idrees,
Sorry, but we are not authorised to provide our advisory services in such a manner. You can avail our paid services for the same –


Leave a Comment

Previous post:

Next post: