Public Provident Fund

If you have an issue with the Public Provident Fund, you could be entitled to a refund. Use our free tool to raise an issue with the service provider.



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Public Provident Fund (PPF) is a long term investment tool. It offers high rates of interest on the invested amount and also the interest earned is free from taxes. PPF offers guaranteed, risk­-free returns as well as complete capital protection. This guide will brief you on your rights and let you know all possible solutions in case you face any issue with the financial service provider.


Grievance Redressal Mechanism


As per the Reserve bank of India, you have the following rights:

  • Right to Fair Treatment: the Customer cannot be treated unfairly on the grounds of gender, age, religion, caste and physical ability. You are entitled to be treated fairly with courtesy when offering and delivering financial products.
  • Right to Transparency, Fair and Honest Dealing: the contract/agreement between you and The financial services provider should be well communicated, transparent and easily understandable. All the relevant terms and conditions must be clearly disclosed. you must not be threatened, or subjected to physical harm, exert undue influence, or engage in blatant harassment, by the financial service provider.
  • Right to Suitability: The products offered to you must appropriately meet your needs.
  • Right to Privacy: Your personal information must be kept confidential, unless otherwise specified, your consent is of utmost while sharing your information.
  • Right to Grievance Redress and Compensation: You are entitled to hold the financial service provider legally liable in case you face an issue.


If you face an issue with the financial service provider, you must:

  • Lodge the complaint in writing (online/offline) at the consumer care department of the concerned branch of your bank. Include all the important details and documents to support your complaint.
  • If you do not receive a satisfactory reply, or if there's no response from the branch within a reasonable time- you may approach the Regional or Zonal manager of the bank who will invoke an internal enquiry into your matter. Or chief grievance redressal officer. Also, The Bank Manager is obliged to address your complaint within 30 days.
  • You may also take help of the appointed Regional Nodal Officers and the Chief Nodal Officer who are responsible to ensure that the complaint is resolved on behalf of the Bank.
  • If still not resolved, you may then approach the Banking Ombudsman, as appointed by RBI.
  • If you are still not satisfied, you may file an appeal with the Appellate Authority against the decision of the Banking Ombudsman within 30 days.
  • The Award by the Ombudsman is not binding on the Non-Banking Financial Company (NBFC) or the complainant as they have the right to appeal against the decision of the Ombudsman before the Appellate Authority. In case the NBFC doesn't comply with the directions, you can approach the RBI directly.
  • Further, you may also take a long route by taking the bank to the Consumer Court.

How will RBI help me with my issue?

The Banking Ombudsman appointed by the RBI will make a decision on your case either through conciliation or mediation between the complainant and the bank complained off. If the terms of the settlement offered by the bank are fully accepted by you, the Banking Ombudsman will pass an order as per the terms of the settlement. Further, the outcome will be binding on you and the financial organisation. Compensation offered by RBI:

    • For Loss suffered: The Ombudsman has the power to direct the Bank to pay as compensation, equal to the amount of loss suffered because of the act or omission by the Bank or amount up to Rs 20 lakh, whichever is lower. 


  • For Mental Agony and Harassment: You will be awarded compensation not exceeding Rs.1 lakh.


If the issue is still not settled by way of an agreement within a period of one month, the Banking Ombudsman will proceed further to pass an Award. However, a reasonable opportunity is provided to both the bank and the complainant to present their case. But, this award is not binding it is upon the complainant to either accept or reject it. Upon rejecting the award, you may approach the Appellate Authority which is vested with a Deputy Governor of the RBI. It will pass the order as it may deem fit in the best of your interest.


How will Resolver help you?

If you have a genuine complaint, Resolver will help you to submit your issue for free. Any complaint from Resolver is an official complaint, and thus the financers are obliged to act upon it. Resolver acts as a link between you and the authority you’re complaining to, making it easier for you to get your complaint to the right place at the right time. Resolver is free, with no adverts or no hidden costs. Start by telling us the name of the financer you have an issue with, raise a case and leave feedback afterwards.


Can I terminate the PPF before maturity?

No, the premature withdrawal is not allowed for PPF accounts. In case of death of the investor, their nominee or legal heir can close the account by providing the relevant documents. In case you face an issue, escalate your claim via Resolver.

Is premature withdrawal allowed in PPF accounts?

Yes, premature withdrawal is allowed, subject to certain terms and conditions. 

  • PPF account has completed 5 financial years. Moreover, the reason behind such withdrawal must either be for the treatment of life-threatening diseases, serious ailments of the account holder, spouse, parents or dependent children, or for funding higher education of account holder (also if a minor).

In such a case, you will be required to present supporting documents from the concerned medical authority or the fee bills (confirming the admission in a recognized institute in India or abroad ) for the closure of the account.

However, a penalty is levied on the premature closure of PPF account, viz. 1% less interest rate than the applicable rate time to time is provided to the investor, from the date of opening the account till the date of premature closure.

Facilitate the process via Resolver.

Can I Partially withdraw the funds from my PPF Account?

Yes, you may do partially withdraw a certain amount of money from your PPF account.  

  • For cases such as the financial crisis or exigency. Withdrawal is allowed from the 7th year and the cap on the maximum amount that can be withdrawn is the lower of these two – 50% of the balance available at the end of the 4th year immediately preceding year of withdrawal, or 

  • 50% of the balance at the end of immediately preceding year. Partial withdrawals are allowed only once in a year.


Am I entitled to take a loan against my PPF account?

Yes, you are entitled to take a loan against your PPF account from the 3rd financial year onwards. The specified loan amount is capped at a maximum of 25% of the balance amount upon the completion of the 2nd year of immediately heading the year in which loan is applied. However, since you become eligible to make partial withdrawals from the 7th year, you will not have the loan facility after that.

Facing an issue, use Resolver to help you with the same.

In Summary

  • Retain all the PPF related paperwork.
  • Know your rights before making any investments.
  • Read the terms and conditions of the concerned financial service provider thoroughly.
  • Contact the customer care centre of the bank in case you face an issue.
  • If unsatisfied with the response, escalate the matter to appointed Nodal officer and then to the Concerned Banking Ombudsman.
  • You may also use Resolver to help you find solutions for your issues.

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We will never share your personal data with anyone without your permission - your case will go to the firm you’re complaining about and, if appropriate, to an ombudsman.

If you find something wrong with a company or our processes, tell us and we will put it right.

You can raise a complaint against Resolver via Resolver itself.

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