Hi friends, here is the MCQ Quiz on Public Provident Fund Account (PPF). In the previous sets, we have discussed Important MCQ Questions from POSB, TD, SCSS, MIS, NSC etc. In this post we will be discussing the most Important expected questions from Public Provident Fund Account (PPF). This Questions will be very useful for upcoming Inspector Posts Exam as well as Postal Service Group B Examination.
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MCQ Quiz on Public Provident Fund Account (PPF)
1. Who among the following can open Public Provident Fund Account (PPF )? i. a single adult by a resident Indian ii. a guardian on behalf of minor/ person of unsound mind iii. Joint Account (up to 3 adults)
Only i
Only i and ii
Only i and iii
All the above
Correct answer
Only i and ii
2. An Individual can open how many accounts under PPF all across the country either in Post Office or any Bank?
Unlimited
Only one either at PO or bank
One at PO and one at Bank
5 PPF Accounts can be opened by an individual
Correct answer
Only one either at PO or bank
3. Which among the following is correct with regard to Public Provident Fund Account (PPF)?
An individual may open an account by making an application in Form-1.
An individual may open one account on behalf of each minor or a person of unsound mind of whom he is the guardian
Joint account shall not be opened under this Scheme
All the above are correct
Correct answer
All the above are correct
4. What is the minimum deposit to open a Public Provident Fund Account (PPF)?
Rs.100/-
Rs.50/-
Rs.1500/-
Rs.500/-
Correct answer
Rs.500/-
5. What is the Minimum deposit to be made in a Financial Year under Public Provident Fund Account (PPF)?
Rs.100/-
Rs.50/-
Rs.1000/-
Rs.500/-
Correct answer
Rs.500/-
6. What is the maximum deposit admissible in a Financial Year under Public Provident Fund Account (PPF)?
Rs.1500/-
Rs.4.5 Lakhs
Rs.1.5 Lakhs
Rs.3 Lakhs
Correct answer
Rs.1.5 Lakhs
7. How many installments can be made in a PPF account in a financial year subject to maximum of Rs.1.5 Lakhs?
6 installments
12 installments
10 installments
Any number of installments
Correct answer
Any number of installments
8. Which among the following is/are correct with regard to Public Provident Fund Account (PPF)? i. Maximum limit of one lakh fifty thousand rupees by an individual shall be inclusive of the deposits made in his own account and in the account opened on behalf of the minor ii. Deposits qualify for deduction under section 80C of Income Tax Act.
Only i is correct
Only ii is correct
Both i and ii are correct
None of the above
Correct answer
Both i and ii are correct
9. Subsequent deposits shall be made under PPF account of any sum in multiples of?
Rs.500/-
Rs.50/-
Rs.100/-
None of the above
Correct answer
Rs.50/-
10. Under PPF, any account in which the account holder, having deposited five hundred rupees in the initial year, fails to deposit the minimum amount in the following years, shall be treated as?
freezed
silent
discontinued
dormant
Correct answer
discontinued
11. A PPF account treated as discontinued may be revived during its maturity period on payment of a fee of _____rupees along with arrears of minimum deposit of five hundred rupees for each year of default?
Rs.500/-
Rs.100/-
Rs.50/-
No fees
Correct answer
Rs.50/-
12. Balance in a discontinued PPF account not revived by the account holder before its maturity shall?
be forfeited
shall continue to earn interest at the rate applicable to the Scheme from time to time
shall not earn interest at the rate applicable to the Scheme from time to time
shall continue to earn POSB interest
Correct answer
shall continue to earn interest at the rate applicable to the Scheme from time to time
13. Which among the following is not correct with regard to Discontinued account under PPF?
The account holder of a discontinued account shall not be eligible to open a new account before closure of such discontinued account after maturity
Loan/withdrawal facility is available on discontinued accounts
The total deposit in a year, shall be inclusive of deposits made in respect of years of default of previous financial years
Balance in a discontinued account not revived by the account holder before its maturity shall continue to earn interest at the rate applicable to the Scheme from time to time
Correct answer
Loan/withdrawal facility is available on discontinued accounts
14. In PPF account, interest shall be calculated for the calendar month on the lowest balance in the account between the close of the _ day and the end of the month?
10th day
5th day
3rd day
None of the above
Correct answer
5th day
15. Interest under PPF account shall be credited to the account at the end of?
maturity
each month
each year
quarterly basis
Correct answer
each year
16. What is the limit of interest under PPF Account above which it qualify for Income Tax?
Rs.10,000/-
Rs.50,000/-
Rs.25,000/-
Interest earned is tax free under Income Tax Act
Correct answer
Interest earned is tax free under Income Tax Act
17. Under PPF, Loan can be taken after the expiry of __ year from the end of the FY in which the initial subscription was made?
5 years
7 years
10 years
1 year
Correct answer
1 year
18. Under PPF, loan can be taken before expiry of __ years from the end of the year in which the initial subscription was made?
five years
ten years
seven years
fourteen years
Correct answer
five years
19. Which among the following is/are correct with regard to loan taken under PPF account? i. Only one loan can be taken in a Financial Year ii. Second loan shall not be provided till first loan was not repaid iii. If loan repaid within 36 month of the loan taken, loan interest rate @ 1% per annum shall be applicable iv. If loan repaid after 36 month of the loan taken loan interest rate @ 6% per annum shall be applicable from the date of loan disbursement.
Only i and ii are correct
All the above are correct
Only i, iii and iv are correct
Only ii, iii and iv are correct
Correct answer
All the above are correct
20. Under PPF, a subscriber can take 1 withdrawal during a financial after _ years excluding year of account opening?
three years
five years
ten years
two years
Correct answer
five years
21. Under PPF, Account will be mature after __ financial years excluding FY of account opening?
5 years
10 years
15 years
21 years
Correct answer
15 years
22. On maturity depositor in PPF account has which among the following options?
Can take maturity payment by submitting account closure form along with passbook at concerned Post Office
Can retain maturity value in his/her account further without deposit, the PPF interest rate will be applicable and payment can be taken any time or can take 1 withdrawal in each FY
Can extend his/her account for further block of 5 years and so on (within one years of maturity) by submitting prescribed extension form at concerned Post Office
All the above
Correct answer
All the above
23. In extended account under PPF with deposits, how many withdrawal(s) can be taken in each FY subject to maximum limit 60% of balance credit at the time of maturity in the block of 5 years?
one withdrawal
Two withdrawals
Five Withdrawals
No withdrawals allowed
Correct answer
one withdrawal
24. Under PPF, premature closure shall be allowed after __ years from the end of the year in which the account was opened subject to following conditions?
ten years
three years
five years
one year
Correct answer
five years
25. Premature closure is allowed under Public Provident Fund Account (PPF) for which among the following reasons?
In case of life threatening disease of account holder, spouse or dependent children
In case of higher education of account holder or dependent children
In case of change of resident status of account holder ( i.e. became NRI)
All the above
Correct answer
All the above
26. At the time of premature closure of PPF Account, _% interest shall be deducted from the date of account opening/date of extension as the case may be?
1%
2%
3%
5%
Correct answer
1%
27. At the time of closure due to death PPF rate of interest shall be paid till __ in which account is closed?
the end of the preceding financial year
the end of the preceding month
the date of closure of account
None of the above
Correct answer
the end of the preceding month
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