About PPF Account
The PPF is said to be one the few investments that allow account holders to enjoy the EEE status which means exempt on investment, interest earned and maturity proceeds. PPF being one of the many long-term investment, fits into the portfolio of all sorts of investors with various risk preferences.
Backed by the Indian Government, the Public Provident Fund (PPF) is a popular long-term investment scheme due to its attractive investment rates and safety in returns. Under Section 80C of the Income Tax Act, the returns are fully exempt from Tax. A PPF account can be opened at banks that accept such deposits or at post offices. It is also possible to open PPF accounts online as the process is easier and more accessible. However, only banks provide this option. Some banks allow complete account opening facility, while others only allow partial account opening facility.
How to Open PPF Account?
The subscriber can select the PPF account opening option by logging in to the Net-banking portal. After selecting the account from where contributions will be made, the customer can link the personal details registered with the bank and the PPF account. All personal details such as address and nomination card must be verified.
How to Open PPF Account Online?
Backed by the Indian Government, the Public Provident Fund (PPF) is a popular long-term investment scheme due to its attractive investment rates and safety in returns. Under Section 80C of the Income Tax Act, the returns are fully exempt from Tax. A PPF account can be opened at banks that accept such deposits or at post offices.
It is also possible to open PPF accounts online as the process is easier and more accessible. However, only banks provide this option. Some banks allow complete account opening facility, while others only allow partial account opening facility.
Conditions to Open PPF Account Online
The conditions to open a PPF account online are:
- The subscriber should hold a savings account with the bank.
- Net-banking and mobile banking should have been activated by the subscriber.
- Aadhaar Card must be linked to the account.
- The subscriber’s mobile number must be linked to the Aadhaar Card.
Documents Required to Open a PPF Account Online
Here, check out how to open PPF account online through the various banks offering PPF accounts such as State Bank of India and its subsidiary (or associated) banks along with ICICI Bank, Punjab National Bank, etc. PPF account cannot be opened at all bank branch. PPF can only be opened at specified bank branches. The list of designated bank branches is available at the bank website or it can be found at any bank branch itself. Of Course, doing it online is way easier.
You would need to next submit the following documents, as mentioned below:
1. PPF Account opening form available at the designated bank branch or the Indian Post portal in case you want to open it at a post office.
2. ID proof that can be any of the following:
- PAN card
- Driving license
- Voter ID card
3. For online applications, different banks have different processes, but the basic documentation and submission of application, remains the same.
4. Address proof, which can be any of the following:
- Telephone bill
- Electricity bill
- Ration card
5. Two current photographs
6. Pay-in slip, which will be available at the bank branch to transfer amount to your PPF account.
Verification of Aadhaar Card
The e-verification of Aadhaar details begins after the initial details are submitted. A verification OTP is sent to the registered mobile number on entering the Aadhaar number. The account is opened once the OTP is entered.
The application form is created online. On submitting the application, it must be printed, signed, and submitted at the branch along with the KYC documents.
Points to Remember
- During account opening and every financial year a minimum amount of Rs.500 must be deposited.
- Rs.1.5 lakh is the maximum contribution that a subscriber can make in a financial year.
- Carry original documents to the bank for quick and convenient verification
- All documents must be self-attested by the applicant.
- A PPF account passbook resembling a bank passbook is issued to the applicant once the account is opened. All transactions in the PPF account are updated in this passbook. The passbook is requirement in order to claim tax deduction under Section 80C of the Income Tax Act.
- An important thing to remember is that the payee name should match the name as mentioned in the PPF account passbook.
Opening a PPF account at a bank is far more convenient than opening one at a post office. The bank offers online fund transfer from the individual's savings account to their PPF account, the same way he or she would make online funds transfer to other bank accounts.
1. What is the investment term of PPF?
The Public Provident Fund is a long-term investment scheme. Hence the tenure of the savings scheme is 15 years. PPF account holders can choose to extend the term in blocks of 5 years each post maturity.
2. What is the minimum deposit limit in a PPF account?
A PPF account holder can deposit as low as Rs.500 in a year.
3. What is the maximum deposit limit in a PPF account?
The maximum amount that a PPF account holder can deposit in a financial year is Rs.1.5 lakh. The deposits can be made in 12 transactions per year and not more than that.
4. When can one avail the PPF loan facility?
Loans can be availed by PPF account holders from the 3rd to the 6th financial year.
5. When is one permitted to make partial withdrawals from a PPF account?
The partial withdrawal facility can be availed from the 7th financial year.
6. When can an SBI customer open a PPF account?
With the launch of digital banking services, customers can open SBI PPF account from anywhere at any time. The process of opening a PPF account can be done completely online without any physical paperwork.
7. How to open a PPF account online with SBI?
If you are a customer of SBI, use the SBI mobile banking app or the desktop version to instantly open a PPF account.
8. What are the prerequisites for opening a PPF account online with SBI?
The individual should have an SBI savings account. The netbanking or mobile banking facility has to be enabled for the said account. The account holder's Aadhaar number and mobile number should be linked to the bank account.
9. What is the process to open a PPF account online with SBI?
- Visit the SBI website (www.onlinesbi.com) and log in to the account with the appropriate credentials. On the left-hand side of the webpage, click on the 'New PPF Account' option.
- The account holder's PAN and other personal details such as name and address will be displayed on the screen. Select the bank account number from which contributions to the PPF account are to be made.
- Provide details of the bank branch such as branch code and name. Verify the details provided and then click on 'Proceed'.
- PPF account will be created instantly and the account number will be displayed on the screen.
10. Where can the PPF account statement be found?
The statement of the PPF account transactions can be found on internet banking.
11. What are the important rules to keep in mind when opening a PPF account?
- Only one PPF account can be held by an individual.
- In the case of minors, PPF account can be opened only through offline channels.
- PPF scheme is not allowed for NRIs.
- To nominate or make changes, visit the nearest bank branch.
- SBI joint account holders can't open a PPF account online.
- To get PPF account passbook, visit the bank branch.
- If PAN is incorrect, further deposits in PPF will not be allowed. Visit the bank branch to correct or update the PAN details.
- Not all banks offer online account opening facility, some offer complete online account opening facility while others offer partial facility.
12. What is partial online account opening facility?
Application form can be filled online but must be submitted offline at the bank. Visit the bank branch with KYC documents and a recent passport-size photograph along with the printed PPF account opening form within 30 days for verification.
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