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Business
Right of withdrawal from PPF
When I approached a banker for withdrawal of 50 per cent of the balance in my provident fund account, I was informed that I am entitled to withdraw only 50 per cent of the balance at the end of the fourth year immediately preceding the year of withdrawal, so that I could withdraw 50 per cent of the balance as available only on March 31, 2005. When I complained to the Regional Director, I was repeated the same advice stating that the amount that could be withdrawn cannot exceed 50 per cent of the amount to my credit on March 31, 2005. Rule 9 provides for 50 per cent of the current balance or the balance in the fourth preceding year, whichever is lower. In my opinion, “whichever is lower” would have application only for persons who have taken loan earlier or within the four-year period. I am therefore of the view that I am wrongly denied the right to withdraw under the scheme. Kindly advise.
Rule 9 is clear that the comparison to be made is between the 50 per cent of the current balance on the date of withdrawal and the balance in the fourth preceding year, whichever is lower, as reduced by any loan already availed. Withdrawal is permissible only after five years of deposit. It can be withdrawn once every year. There is hardly any ambiguity in the language of the provision, so that the interpretation placed by the bank and the Regional Director of National Savings Institute could hardly be faulted.
S. RAJARATNAM
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