Punjab National Bank PPF Account

Punjab National Bank PPF Account is meant for those individuals who want to deposit their money in the government-backed Public Provident Fund (PPF). Subscribers of this scheme are eligible to get tax-advantages as per Section 80C of the Income Tax Act.

A Public Provident Fund (PPF) Account is a financial account that has been made available to Indian citizens since its inception in 1968 through the Public Provident Scheme. It offers a dual benefit to the account holder. Along with attractive returns through interest rates, tax benefits can also be availed though this scheme. Selected branches of Punjab National Bank (PNB) allow opening a PPF account for any interested subscriber.

How to Open a Punjab National Bank PPF Account

A Punjab National Bank (PNB) PPF account can be opened at either of the authorised select 693 branches of Punjab National Bank spread across the nation. The account opening process can be initiated by visiting one of the branches in person.

The prerequisites for opening a PPF account in PNB are entailed in the section below.

Documents Required for opening a PPF Account in PNB

A comprehensive set of documents are required by authorised branches in order to open a PPF account for an interested depositor -

  1. Account Opening Form
  2. PPF Deposit Slip
  3. Identification Proof
    • PAN (Permanent Account Number) Card
    • Driving License
    • Voter ID Card
    • Passport
  4. Address Proof
    • Telephone Bill
    • Electricity Bill
    • Ration Card
  5. Two recent passport size photographs
  6. Pay-In Slip

All documents need to be self-attested. Along with the same, originals of the documents need to be presented for verification purposes.

Punjab National Bank PPF Account Opening Form

The PPF Account Opening Form at PNB is a two-page document that is addressed to the branch manager of the specific branch of PNB.

Key fields that need to be filled in in the first half of the form are -

  1. Address of the PNB branch
  2. Photo placeholder for a passport-size photo
  3. PAN Number
  4. Name of the applicant/subscriber
  5. Name of the applicant/subscriber
  6. Initial deposit/subscription amount (in words and figures)
  7. Permanent address of the applicant/subscriber

The second half of the form deals with some more fields like -

  1. Date of birth of account holder (if a minor)
  2. Applicant relationship status with the minor (if any)
  3. Declaration fields, to be filled only if the applicant is operating multiple PPF accounts on behalf of
    • Self
    • A minor
    • HUF (Hindu Undivided Family) Account
    • An association
  4. PPF Agency Name (if utilised)
  5. Date of the application
  6. Signature Fields

There is a third section of the form which is to be used by the bank authorities and doesn't require the subscriber's inputs.

Interest Rates of a PNB PPF Account

The applicable rate of interest on a PPF Account is 7.1% and the interest is accrued on the minimum balance in the account within the fifth and last day of March every year. The amount is credited to the PNB PPF account by the 31st of March annually.

Punjab National Bank PPF Calculator

The PNB PPF calculator is an easy way for interested subscribers or depositors to find out the total accrued amount that they might have at the end of the maturity term for the PPF account.

The calculator takes into account the following factors -

  • Frequency of deposits (monthly or annual)
  • Amount deposited (fixed or variable as per the frequency of deposits) (A)
  • Term of deposit (constrained by the following factors) (N)
  • Minimum lock-in period is 15 years
  • Renewal of account happens in blocks of 5 years
  • Total Interest earned and balance achieved can be accessed only after N+1 year
  • Rate of interest (controlled by the Ministry of Finance) (R)

Since interest on a PNB PPF account is calculated monthly and added yearly to the outstanding balance and is subject to change as per the rate of interest and the amounts invested, the calculator can present an estimate of the total value accrued in the PNB PPF account at the end of the maturity term.

How to Deposit Money in a PNB PPF Account

Deposits to a PNB PPF Account can go up to Rs. 1,50,000 per annum and can be made in one go or equated over 12 installments in a year. Deposits can be made through the authorised branches of the bank by using a Deposit Slip.

Transfer of PPF Accounts from other Banks or Post Offices to PNB

Upon the request of the PPF account holder, the account can be transferred to and from permitted branches of Nationalised or Private Sector Banks or Post Offices across India.

Punjab National Bank PPF Account Guidelines

A PNB PPF Account is subject to -

  1. Eligibility criteria
    • Only individuals can open a PPF account on behalf of self or as a guardian of a minor
    • Non-eligible entities include
      • Hindu Undivided Family (HUF)
      • Non Resident Indians (NRIs)
      • Only one PPF Account per individual
  2. Duration
  3. The PPF Account has a default duration of 15 years at its initiation. It can also be operated at blocks of 5 years at a time and can be renewed for another 5 years before 1 year of its maturity

  4. Minimum Subscription
  5. Initial of Rs. 100. The minimum deposit after the initial subscription is Rs. 500.

Punjab National Bank Features & Benefits

Opening and maintaining a PPF account in PNB gives the subscriber access to the following features and/or benefits

  1. Loans and Withdrawals on a PNB PPF Account
  2. Loan eligibility for the account holder of a PNB PPF Account starts from the third financial year of the account's initiation. The maximum loan availed thus is limited to 25% of the credit amount at the end of the first financial year. Simply put, any loan availed on the PPF account will be limited to 25% of the closing balance of second preceding year.

    Repayment of the loan is possible within a period of 36 months at an interest rate of 2% on the principal amount. It can be done either in installments or in one go. After the repayment of the principal, the interest can be repaid in not more than two monthly installments at 2% per annum interest rate. If the repayment of the loan exceeds the period of 36 months, an interest rate of 6% per annum will be charged.

    Withdrawals from the PNB PPF account are allowed from the end of the fifth year. The amount is limited by the following constraints in order of reducing value -

    1. 50% of the account balance at credit at the end of the fourth year
    2. 50% of the account balance at credit at the end of the preceding year of the withdrawal
    3. 50% of the account balance subject to previous terms minus previous loans on the account (if any)

    If the account is furthered after its maturity year, a partial withdrawal of up to 60% of the balance of credit at the initiation of the extended period is allowed.

  3. Tax Benefits of a PNB PPF Account
  4. Under the Section 80C of the Income Tax Act, the interest accrued and the credit balance of the account are totally exempted from Wealth Tax.

  5. Premature Closure Terms for a PNB PPF Account
  6. Premature closure of the PNB PPF account can be considered by the Ministry of Finance only after the completion of five years from the end of the account opening year.

  7. Revival of a PNB PPF Account
  8. A discontinued PNB PPF account can be revived through the payment of Rs. 50 per year along with arrears of subscription of Rs. 500 per annum.

  9. Nomination Facility in a PNB Account
  10. Nomination facility is also available for a PNB PPF account.

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