Public Provident Fund (PPF) Scheme – MCQs

11.When is the interest in a PPF account credited?

A. Monthly
B. Quarterly
C. Annually
D. Half-yearly

The correct answer is: C

12.Interest is calculated on the lowest balance between:

A. 1st and 30th of the month
B. 10th and end of month
C. 1st and 15th
D. 5th and 25th

The correct answer is: B

13.What happens if the minimum ₹500 is not deposited in a financial year?

A. Account is closed
B. Penalty is imposed
C. Account becomes “discontinued”
D. Interest is stopped

The correct answer is: C

14.How can a discontinued PPF account be revived?

A. By writing to the bank
B. By paying ₹1,000
C. By paying ₹50 per default year + ₹500 arrears per year
D. Revival is not allowed

The correct answer is: C

15.Can a loan be availed from a discontinued PPF account?

A. Yes
B. No
C. Only after 3 years
D. Only after maturity

The correct answer is: B

16.Loan from PPF is available during which financial years?

A. 2nd to 5th
B. 3rd to 6th
C. 1st to 3rd
D. 5th to 10th

The correct answer is: B

17.What is the maximum loan allowed from PPF balance?

A. 10% of current balance
B. 50% of balance at end of previous year
C. 25% of balance at end of 2nd year before loan
D. ₹1 lakh

The correct answer is: C

18.How long is the repayment period for a PPF loan?

A. 12 months
B. 24 months
C. 36 months
D. 60 months

The correct answer is: C

19.What is the interest rate on a timely repaid PPF loan?

A. 6%
B. 1%
C. 2%
D. 4%

The correct answer is: B

20.If loan repayment is delayed beyond 36 months, what interest rate is charged?

A. 4%
B. 6%
C. 8%
D. 2%

The correct answer is: B
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