How to make online payment to PPF Account

You can make an online payment to your PPF account by adding your PPF bank account as a beneficiary in your online banking system. Then select the branch and enter the PPF fund account number as the payee account number in order to transfer funds.
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Steps for Online Transfer to PPF Account

Following is the step by step process for online transfer to PPF Account.

  • Add your PPF Account (opened in a bank) as a beneficiary into your online banking module. The payee name and the PPF account number should match exactly with that mentioned in your PPF account.
  • Select the bank branch in which your PPF account is maintained. For example, if your PPF account is in State Bank of India then mention SBI and the corresponding branch name
  • Enter payee account number as your Public Provident Fund account number
  • Once, the above mentioned details are filled in and submitted, your PPF account will be added as a third party account. You can now transfer PPF funds from your online banking account to your PPF account via the standard online banking process.

PPF Account – Modes of Payment 

PPF payments can be made online in case the account has been opened at a bank. Currently, the online facility is not available in case the account has been opened at an India Post Office.  

Online Method for PPF Payments 

The three different methods where PPF deposits can be made online are through Standing Instructions, internet banking, and ECS Mandate. 

  1. Standing instructions 
  2. Standing instructions is a method by which individuals request the bank to transfer the amount from one account to another. This must be done by individuals every time they wish to transfer the money to another account and can be done through the net banking section. This method is beneficial when doing a lump sum transfer. 

  3. Through internet banking 
  4. Transfer of funds from the bank to the PPF account is possible through National Electronic Funds Transfer (NEFT). Transfer via NEFT is very easy and can be done from office or home. The PPF account number and the IFSC code of the branch where the PPF account is maintained must be available to transfer funds via NEFT. However, both branches must have the NEFT facility available. Currently, UPI, IMPS, and RTGS modes of payment are not available. 

  5. ECS Mandate 
  6. This can be done by visiting the branch and giving them an ECS mandate where a specific sum of money will be transferred from the bank account to the PPF account. It is a one-time process and is very simple. The amount will be deducted from your bank account on a fixed date of every month and transferred to the PPF account. However, enough funds must be available in the bank account for the transfer to take place. 

Pay by Cash or Cheque 

In case the PPF account is opened at a post office, payments towards the account can be made in the form of cash or by cheque. Banks accept payments in the form of cash or cheque as well. Individuals must fill details such as deposit amount, branch, account number, etc., on the deposit slip. Once the slip is submitted to the cashier, the amount will be credited to the PPF account. 

In case payment is made via cheque, it is vital to make sure the cheque is issued in the correct name.  It is important to write the PPF account number and mobile number on the back of the cheque. In case there is an issue with the cheque, the bank will get in touch with you. The cheque can then be put at the drop box present at the bank. Depending on the clearance of the cheque, the amount will be deposited into the PPF account. 

Deposit Limit 

A minimum amount of Rs.500 must be deposited to keep the account active. In a financial year, Rs.1.5 lakh is the maximum amount that deposited. If the deposit amount exceeds Rs.1.5 lakh, the extra amount will be refunded back to the subscriber without any interest. 

Penalties for not Paying PPF Amount 

A fine of Rs.50 is levied in case the subscriber does not maintain the minimum balance of Rs.500 for the financial year. In case subscribers are making the payment via cheque or ECS mandate, fines are levied if the cheque or ECS payment bounces due to insufficient funds.  

NOTE: Transfer of funds from your online savings account to your PPF account is possible whether you have your PPF account and savings account in the same bank or whether you have your savings account and PPF account in different banks.

The best use of this facility of transferring funds from bank savings account to PPF account can be made by NRIs and those settled outside India. Such customers can deposit funds into their PPF account without having to visit a bank branch separately. Also, in case of any doubt regarding the process, the best way to go about this is to transfer a smaller dummy amount from your bank account to PPF and once the process gets confirmed, you can transfer the larger chunk of money.

FAQ’s 

  1. Is it possible to transfer the PPF account from one individual to another? 
  2. No, individuals cannot transfer their PPF account. A nominee will also not be able to continue the account in the name of the subscriber who has passed away. 

  3. Is it possible for individuals to change the name on the account after marriage? 
  4. Yes, on submitting the relevant documents, individuals will be able to change the name on the account after marriage. 

  5. Is it possible to transfer a PPF account? 
  6. Yes, transferring a PPF account from one account office to another is possible. 

  7. Can an individual open more than one account under his/her name? 
  8. No, an individual can have only one account under his/her name. However, an additional account can be opened on behalf of a minor. 

  9. What are documents that are required to open a PPF account? 
  10. Given below is the list of documents that are required to open a PPF account: 

    • PPF account opening form 
    • Passport size photograph 
    • Residence proof and ID proof 
    • Nomination form 
    • PAN card copy 
  11. What is the minimum amount that must be deposited to open a PPF account? 
  12. A minimum amount of Rs.100 must be deposited to open a PPF account. 

  13. Is it possible for Non-Resident Indians (NRIs) to open a PPF account? 
  14. No, it is not possible for NRIs to open a PPF account. 

  15. Is it possible for minors to open a PPF account online? 
  16. No, PPF accounts on behalf of a minor can be opened only at branches. 

  17. Is it possible to extend the 15-year investment tenure? 
  18. Yes, the 15-year investment tenure can be expended by a block of 5 years. 

  19. Is it mandatory to submit Aadhaar details to open a PPF account? 
  20. Submitting Aadhaar details is not mandatory to open a PPF account. 

  21. Is it possible to change nominations? 
  22. Yes, by applying for a new nomination, changes can be made. 

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