Public Provident Fund Increases rate of interest and limit

Public provident fund PPF scheme increases rate of interest as well as the PPF limit amount. Earlier PPF limit was 70000 rupees which is increased to 100000 and rate of interest is increased 2% to 1%. Reserve bank of india has issued a circular on 5-12-2011 about the PPF amendments. Full circular is as under.

RBI/2011-12/291
DGBA.CDD. No. H- 3572/15.02.001/2011-12

December 05, 2011

The Chairman and Managing Director/Managing Director
Government Accounts Department/Head Office
State Bank of India/State Bank of Patiala/
State Bank of Bikaner & Jaipur/State Bank of Travancore/
State Bank of Hyderabad/State Bank of Mysore/ Andhra Bank/
Allahabad Bank/Bank of Baroda/Bank of India/
Bank of Maharashtra/Canara Bank/Central Bank of India/
Corporation Bank/Dena Bank/Indian Bank/Indian Overseas Bank/
Punjab National Bank/Syndicate Bank/UCO Bank/
Union Bank of India/United Bank of India/Vijaya Bank/IDBI Bank/ICICI Bank Ltd.

Dear Sir/Madam,

Amendment to Public Provident Fund Scheme, 1968 (PPF, 1968)

We forward herewith a copy of Government of India Notifications G.S.R. (E) & S.O.(E) dated November 25, 2011, on the captioned subject, the contents of which are self-explicit.

2. In this regard, we advise that the contents of the Notifications may be brought to the notice of the branches of your bank operating the PPF, 1968 and may also be displayed on the notice boards of your branches for the information of the PPF, 1968 subscribers.

Yours faithfully

(Shrikant Hamine)
Manager

Encls: 2

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[TO BE PUBLISHED IN THE GAZETTE OF INDIA: EXTRAORDINARY, PART II – SEC. 3 (II)]

New Delhi, the 25th November, 2011

MINISTRY OF FINANCE
(Department of Economic Affairs)

NOTIFICATION

G.S.R. (E). – In exercise of the powers conferred by sub-section (4) of  section 3 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government  hereby makes the following further amendment to the Public Provident Fund Scheme, 1968, namely : -

1. (1) This Scheme may be called the Public Provident Fund (Amendment) Scheme, 2011.

    (2) It shall come into force on the 1st day of December 2011.

2. In the Public Provident Fund Scheme, 1968, -

(i) in paragraph 3, in sub-paragraph (1), for the letters and figures “Rs 70,000/-“, the letters and figures “Rs 1,00,000” shall be substituted;

(ii)  in paragraph 11, in sub-paragraph (2), for the words “one per cent. per annum”,  the words “two per cent. per annum”, shall be substituted;

(iii)   in Form-A, in paragraph (iv), for the letters and figures “Rs70,000/-“, the letters and figures “Rs 1,00,000” shall be substituted.

[F.No. 1/9/2011-NS-II]
M.A. Khan, Under Secretary

Note :- The Scheme was notified  vide notification G.S.R.1136(E), dated 15.06.1968 and amended vide G.S.R. 368 (E), dated 1.8.72, G.S.R. 217(E) dated 9.3.79,  G.S.R. 271(E), dated 16.3.83, G.S.R. 54 (E), dated 7.2.84, G.S.R. 895(E), dated 23.6.86, G.S.R.1013 (E), dated 20.8.86, G.S.R.793 (E), dated 29.8.89, G.S.R. 477(E), dated 25.5.94, G.S.R. 489(E) dated 6.7.99, G.S.R. 908 (E) dated 6.12.2000, G.S.R. 679 (E), dated 4.10.2002, G.S.R.768(E), dated 15.11.2002, G.S.R. 585 (E), dated 25.7.2003, G.S.R.690 (E) dated 27.8.2003, G.S.R.755(E), dated 19.11.2004, G.S.R.291(E), dated 13.5.2005 and G.S.R.956(E), dated 7.12.2010.

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[TO BE PUBLISHED IN THE GAZETTE OF INDIA: EXTRAORDINARY, PART II – SEC. 3 (II)]

New Delhi, the 25th November, 2011

MINISTRY OF FINANCE
(Department of Economic Affairs)

NOTIFICATION

S.O. (E). – In pursuance of section 5 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government  hereby notifies that the subscriptions made to the fund on or after the 1st day of December, 2011 and balances at the credit of the subscriber shall bear interest at the rate of 8.6 per cent. per annum.

[F.No. 1/9/2011-NS-II]
M.A. Khan, Under Secretary

Note :- The Principal notification was published in the Gazette of India vide number S.O.48(E) dated 15th January, 2000 and subsequently amended vide S.O.192 (E) dated 1st March 2011, S.O.271 (E) dated 1st March, 2002 and S.O. 250(E) dated 1st March, 2003.