It’s High Time the PPF (Public Provident Fund) Limit was Increased to Rupees 3 Lakh and Interest Rate to 9.5 Per Cent Per Annum in India

The principal aim of the the PPF (Public Provident Fund) Scheme, 1968 is to encourage household savings. As reported in The Economic Times dated 22nd of August, 2014, Finance Minister Arun Jaitley had raised the investment limits in tax saving schemes with “an aim to encourage household savings.”

He had increased the PPF investment limit in line with the hike in cumulative tax exemption limit under 80 C Income Tax Act from Rs 1 lakh to Rs 1.5 lakh. The limit remains unchanged even after a period of 10 years.

The Interest rate on deposit in PPF Scheme for the year 2014 - 2015 fiscal was 8.7 per cent.

The Interest rate on deposit in PPF Scheme has drastically been brought down over the years to 7.1 per cent which is the case even for the financial year 2024 – 2025 by the NDA government. Whereas, the deposit limit remains unchanged at Rupees 1.5 lakh.

Low interest rate discourages new savings in the PPF Scheme.

Nirmala Sitharaman, the Union Finance Minister, recently exhorted banks to design innovative attractive schemes to encourage household deposits. Charity begins at home. So, she herself should take the first step by increasing the PPF Scheme deposit to Rupees 3 lakh per annum. Also, she must increase the PPF Scheme interest rate to 9.5 per cent since it was 8.7 percent in the year 2014 – 2015.

The above mentioned steps shall encourage households and salaried class to increase their savings in banks.

The Indian government shall stand to benefit too in terms of availability of more PPF Scheme amounts for various government investments and developmental projects.

Most of all, the above mentioned timely steps shall go a long way in enhancing, nurturing, and sustaining economic peace on the economic landscape of contemporary India that we are currently living in.

~ डॉ स्वामी अप्रतिमानंदा जी

Dr Swaamee Aprtemaanandaa Jee

(The writer is an acclaimed independent Scientific Healer, yoga and ayurveda-Practitioner, Spiritual/Research/Political/Cosmic Scientist, Analyst, Gynaecologist, Epidemiologist, Geostrategist, economic/political-Geographer, Geohumanist, Cosmologist, and citizen-Economist)

(Note: While citing and using any materials on the Internet, links to the website https://theworldpeace-globalthinktank.blogspot.com not lower than the first paragraph are mandatory. In addition, citing the translated materials of foreign media outlets is possible only if there is a link to the website https://theworldpeace-globalthinktank.blogspot.com and to the website of a foreign media outlet. Citing and using materials in offline media, mobile apps, Smart TV are allowed only with the condition that theworldpeace-globalthinktank/Dr Swaamee Aprtemaanandaa Jee are acknowledged. News and publications marked as "Advertisement" and "PR" and articles in the section "Releases" include promoted content, and an advertiser is responsible for the content. © 2010-2075 Aprtemaanandaa. All rights reserved.)

Disclaimer: Dr Swaamee Aprtemaanandaa Jee does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.