Question

What is the lock-in period for Public Provident Fund?

A 5 years Correct Answer Incorrect Answer
B 7 years Correct Answer Incorrect Answer
C 8 years Correct Answer Incorrect Answer
D 10 years Correct Answer Incorrect Answer
E 15 years Correct Answer Incorrect Answer

Solution

The Public Provident Fund is a low risk, long term, fixed income investment. PPF was introduced in India in 1968 with the objective to mobilize small saving in the form of investment, coupled with a return on it. The invested money is locked-in for a minimum period of 15 years , which can be extended in blocks of 5 years, if required. However, the scheme permits partial withdrawals  from year 7 i.e. on completing 6 years. An account holder can withdraw prematurely, up to a maximum of 50% of the amount that is in the account at the end of the 4th year.

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