Wednesday, September 7, 2011

PPF Deposit Limit Raised 70,000 to 1,00,000 or it is recommendation only

By on 7:44 PM

I am reading on all main business & Finance site and mail sent by Sr members Of Institute that PPF Limit has been raised to 100000.But In fact still it is a recommendation only ,No notification in this regard has been issued by RBI .We will update you as and when notification released .

This whole rumors has been raised due to statement issued by Minister of State for Finance Shri Namo Narain Meena in Rajya sabha .Title of the information is misleading but content are clearly mentioned that this is a recommendation only and further action is pending and will be taken only after suggestions revived from the States and other relate quarters. Press relaese is reproduced here Under for your ready reference .


Modification in PPF Scheme : Deposit Limit Raised from Rs. 70,000 to Rs. One Lac while Rate of Interest on Advances Against Deposits in PPF Scheme Raised from 1% to 2 Percentage Points

The Committee on Comprehensive Review of National Small Savings Fund (NSSF) headed by Deputy Governor, RBI has recommended revision of certain provisions of PPF Scheme, 1968 and benchmarking of interest rates on various small savings schemes with the secondary market yields on Central Government securities of comparable maturities with suitable spread.

The Committee has recommended increasing the deposit limit under PPF Scheme from existing Rs. 70,000 to Rs. 1 lakh per annum and fixing of rate of interest on advances against deposits in PPF scheme at 2 percentage points as against the prevailing interest rate on such advances at 1%.

The Committee has further recommended benchmarking interest rate on small saving schemes to interest rate on Government securities of similar maturities with a positive spread of 25 basis points on all schemes except for 50 basis points for 10 year NSC and 100 basis point for Senior citizens Savings Scheme. 

Recommendations of the Committee have been referred to State Governments and concerned Ministries/ Departments of Central Government for their comments.

This information was given by the Minister of State for Finance Shri Namo Narain Meena in a written reply to a question raised in Rajya Sabha today.

So from above and after verifying the fact from RBI website it is 100% sure that Limit is still not raised  and will be raised/decided  after receiving comments from State GOvt and other concerned Department and Ministries.

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