The Finance Ministry vide its latest rules have notified an increased limit for Public Provident Fund or PPF Accounts as they are generally known from Rs. 70,000 p.a. to Rs. 1,00,000 p.a. It has also increase the rate of interest on PPF, which is tax exempt, from 8% to 8.6% p.a.
This step will increase the amount of public money invested in PPF which is a long term investment plan with lock in period of 15 years but give a higher rate of return due to exemption from income tax.