<h1>Premature PPF Account Closure Allowed for Severe Illness or Higher Education After 5 Years, With 1% Interest Penalty.</h1> The government permits premature closure of Public Provident Fund (PPF) accounts under extreme conditions such as life-threatening illnesses or for the higher education of children. Accounts can be closed after five financial years for the treatment of serious ailments affecting the account holder, their spouse, dependent children, or parents, as well as for the account holder's or minor account holder's higher education. Such closures incur a penalty of a one percent reduction in the applicable interest rate. The government may also relax these rules in exceptional situations, as stated by the Minister of State in the Ministry of Finance in a written reply to the Lok Sabha.