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RBI instructed to Banks to accept Rs. 100000 in Public Provident Fund from Depositors.

Latest amendment to Public Provident Fund Scheme by Resurve Bank Of India by notification dated 25th November, 2011. The Reserve Bank today asked banks to accept deposits up to Rs 1 lakh under the Public Provident Fund (PPF). As many as 25 public and private sector lenders accept deposits under the PPF scheme. Recently, the government has raised the annual investment ceiling in PPF savings to Rs. 100000 from the present limit of Rs. 70000. Besides, interest rate on PPF increased to 8.60% from 8%. The decision to hike interest rate is part of the recommendations of Shyamala Gopinath Committee to make small savings schemes more attractive and returns would be in sync with market rates. The amendment to Public Provident Fund Scheme, 1968 (PPF, 1968) by RBI is as follows:

Amendment to Public Provident Fund Scheme, 1968 (PPF, 1968)

We forward herewith a copy of Government of India Notifications G.S.R. (E) & S.O.(E) dated November 25, 2011, on the captioned subject, the contents of which are self-explicit.

2. In this regard, we advise that the contents of the Notifications may be brought to the notice of the branches of your bank operating the PPF, 1968 and may also be displayed on the notice boards of your branches for the information of the PPF, 1968 subscribers.

Yours faithfully

(Shrikant Hamine)
Manager

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