Yes, you can withdraw after 5 years of PPF account membership.
You can withdraw any amount not exceeding fifty per cent of the amount that stood to your credit at the end of the fourth year immediately preceding the year of withdrawal or at the end of the preceding year, whichever is lower, less the amount of loan, if any, drawn by you on this PPF account.2- What is the maximum amount, I can withdraw?
Nope. Just follow the above rules.3- Is their any penalty in withdrawing the amount?