What is PPF? Who Can Open A PPF Account?

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The full form of PPF is Public Provident Fund Scheme. It is a scheme of the Central Government, framed under the PPF Act of 1968.

PPF is a government backed, long term small savings scheme, which offers safety with attractive interest rate and returns that are entirely exempted from Tax.

PPF scheme

Investors can invest minimum Rs 500 to maximum Rs 1,50,000 in one financial year to the PPF scheme. The program was initially started by the Government to provide retirement security to self-employed individuals and workers in the unorganized sector. PPF subscribers can get the facilities such as loan, withdrawal, and extension of account.

Tax saving tool

Nowadays PPF is considered as the best tax saving scheme for people who needs to invest to save some tax.

One account for one person

Only one PPF account can be maintained by a person, except an account that is opened on behalf of a minor. Thus, PPF account can also be opened by either parent under the name of a minor. However, each person is eligible for only one account under his/her name.


Both mother and father cannot open Public Provident Fund account on behalf of the same child. For couples with two kids, they can maximum open four accounts. Which means two accounts in their name, and two in the name of their children under the guardianship of either of the parent.


A Non-Resident Indian (NRI) is a citizen of India who holds an Indian passport and who has temporarily emigrated to another country for six months or more for reasons like employment, residence, education or more. NRIs are not eligible to open a PPF account.

Indian Resident who got NRI status

A resident who becomes an NRI during the tenure prescribed under Public Provident Fund Scheme may continue to subscribe to the fund until its maturity on a non-repatriation basis.
The funds can be transferred via cash or NRO accounts to the PPF account that is the account that he or she opened before becoming an NRI. Funds can be transferred via Internet banking also. Such accounts maintained by an NRI will not be eligible for an extension of five years at the time of maturity.


Since 13th May 2005, Hindu Undivided Family cannot open an account under the PPF scheme. However, accounts opened before that date may continue subscription to their account till maturity. They also cannot extend the account any further. 6 Government Backed Investment Schemes For Best Return And Less Risk


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Story first published: Thursday, April 6, 2017, 12:37 [IST]
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