Your EPF, PPF are now immune from court attachment

Social security instruments such as Employees’ Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS) are now immune to court attachment order from any Indian courts.

In dire financial situations, when you are facing legal action for non-compliance to your financial commitments such as loan repayment, bank or lenders takeover your assets including your house, land and shares through a court attachment order. This order freezes your assets, meaning you cannot live, rent or sell them. The bank can then monetise these assets to get clear their debt.

In a positive move to protect investors who are setting aside their income for social security and financial protection, the Parliament of India has now placed EPF, PPF, NPS and insurance policies under special legal protection. Thus no court in India can attach your balance in these instruments.

EPF and PPF are a popular choice among financially disciplined investors who are creating a retirement corpus. While EPF, NPS is provided by an employer, PPF investments can be made by any resident Indian citizen. NPS is gaining popularity among investors as the government has made it more attractive by giving additional tax benefit. Also life insurance policy for self and family are protected to an extent. Therefore, it is very important for every investor to invest in these personal finance options according to their financial plan to safeguard themselves against emergencies.