Which of the following statements about the Public Provident Fund (PPF) is incorrect?

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RRB Clerk Mains Memory Based Paper (Held On: 6 October 2024 Shift 1)
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  1. PPF has a lock-in period of 15 years.
  2. Partial withdrawals are allowed from the 7th financial year.
  3. The current interest rate on PPF is 7.1% (as of 2024).
  4. PPF accounts can be extended indefinitely in blocks of 5 years after maturity.
  5. NRIs are eligible to open new PPF accounts.

Answer (Detailed Solution Below)

Option 5 : NRIs are eligible to open new PPF accounts.
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IBPS RRB Clerk Reasoning (Mock Test)
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Detailed Solution

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The correct answer is NRIs are eligible to open new PPF accounts.

In News

  • DEA issued 6 new rules for PPF, Sukanya Samriddhi Yojana, and other small savings schemes, effective from 1st October 2024.

Key Points

  • NRIs are not eligible to open new PPF accounts (existing accounts opened before becoming NRI can continue until maturity).
  • PPF has a 15-year lock-in period, extendable indefinitely in 5-year blocks.
  • Partial withdrawals are permitted from the 7th financial year onward.
  • The current PPF interest rate is 7.1% (Q3 2024), revised quarterly by the government.

Additional Information

  • New Rules (Effective 1st Oct 2024):
    • Mandatory Aadhaar linkage for all small savings schemes.
    • Revised premature closure rules for PPF (allowed only after 5 years under specific conditions).
  • PPF Features:
    • Tax benefits under Section 80C; interest and maturity proceeds are tax-free.
    • Minimum annual deposit: ₹500; maximum: ₹1.5 lakh.
  • Other Small Savings Schemes:
    • Sukanya Samriddhi Yojana (SSY), NSC, KVP, etc., also covered under the new rules.

Latest RRB Office Assistant Updates

Last updated on Jun 30, 2025

-> The Institute of Banking Personnel Selection (IBPS) has officially released the Provisional Allotment under the Reserve List on 30th June 2025.

-> According to the official notice, the Prelims Examination is scheduled to be conducted on 6th, 7th, 13th and 14th December 2025. 

->  The Mains Examination is scheduled for 1st February 2026. 

-> IBPS RRB Clerk 2025 Notification is expected to be released soon. 

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