Recently the apex Bank of India has announced to extend the PPF limit from Rs 1 lakh to Rs 1.5 lakh. In a communication with the banks RBI stated that the limit of deposit under the PF deposit scheme introduced in 1968 will now increase up to Rs 1.5 lakhs.
. The RBI has asked the banks to inform this in their respective branches and inform the customers as well by displaying the information on the notice boards. The rate of interest on the PPF is 8.7%. Mr. Jaitley stated that with the purpose to boost household savings this measure has been taken. Now the people can deposit up to Rs 1.5 lakhs in their PF savings account.