Government Services · India · Small Savings
PPF Withdrawal Rules: Partial, Premature and Maturity (2026)
A Public Provident Fund (PPF) account runs for 15 years and is designed to lock your money in, so the rules on taking it out are strict and depend on how many years the account has run. In the early years you can only take a loan against the balance. From the seventh year you can make a partial withdrawal. After five years you can close the account early only on a few specified grounds, with an interest penalty. At 15 years the account matures and you can take everything, or extend in blocks of five years. This page explains each of these: the loan window, partial withdrawal, premature closure, maturity and extension, the forms you use at the bank or post office, and the dispute route if the bank or post office wrongly refuses a withdrawal you are entitled to. Some figures depend on the current scheme notification, so they carry a confirm note. Last verified October 2026.
- Loan: available roughly in years 3 to 6, a share of the earlier balance.
- Partial withdrawal: from the seventh year, one a year, capped at a share of the balance, tax free.
- Premature closure: only after 5 years, on illness, higher education or change of residency, with an interest penalty.
- Maturity: close and withdraw tax free after 15 years, or extend in 5-year blocks.
- If wrongly refused: complain to the branch, then RBI or postal ombudsman, then consumer or civil court; Claw can track it.
01How the PPF lock-in works
A PPF account has a fixed 15-year term, counted from the end of the financial year in which you opened it. That is why the same account can show different withdrawal rights for two people depending on how old the account is. There are four ways money comes out, each tied to the age of the account:
- A loan against the balance in the early years.
- A partial withdrawal from the seventh year.
- Premature closure after five years on specified grounds.
- Full withdrawal at maturity, or extension.
The account can be held at a bank or a post office, and the rules are the same because they come from the same central scheme.
02Loan against your PPF (early years)
In the first few years, before partial withdrawal is allowed, you can take a loan against the balance.
- Available roughly from the third financial year to the sixth, that is, from the start of year 3 up to the end of year 6.
- The loan is a percentage of the balance at the end of the second year preceding the year you apply.
- Interest is charged at a small margin over the PPF rate, and the loan is repaid within a set period.
Once partial withdrawal opens in year 7, the loan facility stops, because by then you can withdraw directly.
03Partial withdrawal (from year 7)
From the seventh year, meaning after five full financial years have passed from the end of the year you opened the account, you can make one partial withdrawal in a financial year.
- The amount you can take is limited to a share of the balance.
- You apply using the prescribed withdrawal form (historically Form 2, now Form C or the bank/post office equivalent) with your passbook.
- The withdrawn amount is tax free, and you do not have to give a reason.
Only one partial withdrawal is allowed per financial year.
04Premature closure (after 5 years)
You can close the account before 15 years only after it has completed five financial years, and only on specified grounds:
- Serious illness or life threatening disease of the account holder, spouse, children or dependent parents, on medical documents.
- Higher education of the account holder or a dependent child, on admission and fee documents.
- Change in residency status of the account holder (becoming a non-resident), on proof.
Premature closure carries an interest penalty: the interest is recomputed at a rate lower than the normal PPF rate for the whole period. You apply with the prescribed closure form and the supporting documents for your ground.
05Maturity and extension (after 15 years)
When the 15-year term ends you have three choices:
- Close and withdraw the whole balance, which is tax free, using the closure form.
- Extend without fresh contributions, leaving the balance to keep earning interest, with the right to withdraw as you need (subject to one withdrawal a year).
- Extend with fresh contributions in blocks of five years, by giving the extension form within one year of maturity. In this mode withdrawals are capped at a share of the balance at the start of the block.
If you do nothing at maturity, the account is usually treated as extended without contributions by default, so the balance keeps earning interest.
06If a withdrawal is wrongly refused: the dispute route
A PPF withdrawal you are entitled to is a service the bank or post office must provide. If the branch refuses a valid partial withdrawal, drags out a premature closure on a proper medical ground, or delays paying the maturity amount, that is a deficiency in service. Start with a written complaint to the branch and then the banking or postal grievance cell. If that fails, a bank account holder can escalate to the Reserve Bank of India Ombudsman under the Reserve Bank Integrated Ombudsman Scheme, and a post office account holder to the postal grievance and ombudsman route. Beyond that, a deficiency in service can be taken to a consumer commission, or a civil court where a legal right is in issue. To understand the consumer route, see how to file a consumer complaint.
Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.
If a refused PPF withdrawal turns into a consumer complaint or a civil case, you can create a FREE Claw account and track that matter across the forum that hears it. Claw covers 9,102 courts, benches and forums in India, including the consumer commissions, so there is a real tracking home for the orders and next dates. Judgment search spans 30 crore+ judgments, with Supreme Court decisions from 1950 and High Court decisions from 1990, and results return in under 5 seconds, which helps you or your lawyer see how similar deficiency-in-service disputes were decided. Claw does not train its AI models on your documents. This is general information and not legal advice, and a contested claim still needs a lawyer for the arguments.
To see what is already filed in a forum, you can run a case search across Indian courts by party name.
07Sources and further reading
- National Savings Institute (small savings schemes): nsiindia.gov.in
- India Post (post office PPF): indiapost.gov.in
- RBI Complaint Management System: cms.rbi.org.in
- Claw: clawlaw.in
This page is general information for readers in India, not legal advice. PPF limits and penalties come from the scheme notification and can change, so confirm the current rule before you apply to withdraw.
08Frequently asked questions
When can I first withdraw money from my PPF?
A partial withdrawal is allowed from the seventh year, that is after five full financial years from the end of the year you opened the account. Before that you can only take a loan against the balance, roughly from the third to the sixth year.
How much can I take as a partial withdrawal?
The amount is capped at a share of your balance, commonly the lower of 50% of the balance at the end of the fourth preceding year or the year before. Confirm the exact cap in the current PPF Scheme notification, and remember only one partial withdrawal is allowed each financial year.
Can I close my PPF before 15 years?
Only after it has completed five financial years, and only on specified grounds: serious illness, higher education, or change of residency, each with supporting documents. Premature closure also carries an interest penalty computed at a lower rate for the whole period.
What are my options at maturity?
After 15 years you can close and withdraw the whole tax-free balance, extend without fresh contributions while keeping the balance earning interest, or extend with contributions in five-year blocks by filing the extension form within a year of maturity.
What can I do if the bank refuses a valid withdrawal?
Complain in writing to the branch and the grievance cell first. If that fails, a bank account holder can escalate to the RBI Ombudsman and a post office holder to the postal ombudsman, and a deficiency in service can go to a consumer commission or a civil court. Claw can track that matter across the forum that hears it.