Is it a wise decision to withdraw money from Provident Fund?


Is it a wise decision to withdraw money from Provident Fund?

Contact to withdraw money from Provident Fund. (advertisement)

Basically Provident Fund is given to an employee for his complete service, after his retirement.

During Corona, the Government of India had made some changes in the rule of withdrawing money from the Provident Fund.

Money can be withdrawn from Provident Fund with certain conditions such as

to spend on a wedding
in case of medical emergency
at the end of the job

My question is that people are being encouraged to withdraw money even if the above requirements are not there.
1. If the Government of India fund is reduced, then the amount of interest will also be less.
2. This advertisement has become a means of earning money.

you people explore this thing how it is bad for our working employee.

Vipul from Raipur.

Vipul_Raipur Answered question November 9, 2021
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Provident Fund

Provident Fund, why it is important for employee?

It is not a wise decision to withdraw your Provident Fund unless you are super-annual. Who will give you such a tax-exempt refund? Certain withdrawals are permitted within the scope of the Provident Fund Act. Use only when you really need it. See how it grows over the years.

Some of the important features of the public provident fund are:

  • After staying invested for at least 7 years, one is allowed partial withdrawals from a PPF account for emergencies.
  • One is allowed to take a loan on a PPF account between the 5th and the 7th year.
  • While a public provident fund account can be opened with just Rs 100, you have to invest a minimum of Rs 500 in a year. The maximum investment allowed in a year is Rs 1.5 lakh. Any deposits beyond Rs 1.5 lakhs do not earn any interest. You can either deposit the money as lump-sum or in a maximum of 12 instalments.
  • The public provident account cannot be attached by any court due to the immunity provided by the Government Savings Banks Act, 1873. However, the account is not immune to the authority of the Income Tax department.

Besides premature withdrawal, you can also opt to prematurely close the public provident fund account. However, to prematurely close a PPF account, one has to stay invested for a minimum of five years. Moreover, it will only be allowed in special conditions such as treatment of serious illness of the account holder or his/her dependents on the presentation of supporting documents. The government also allows premature closure of PPF account in case the account holder requires funds to pursue higher education. He/she will have to produce supporting documents like fee bills from recognized colleges and universities in India and abroad.


In normal circumstances, the PPF account can only be closed after maturity i.e. 15 years. The investor can withdraw the principal amount along with the accumulated interest after maturity.


The public provident fund is an ideal investment option for investors seeking risk-free instruments with a long-term investment horizon. The PPF is essentially a debt instrument and can be used for efficient asset allocation.

Super Admin Gaurav Changed status to publish November 9, 2021
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