SBI PPF Account: How to apply, eligibility, contribution and other details

 

 

New Delhi: Public Provident Fund (PPF) is one of the most common long-term investment instruments among risk-averse Indian investors. A PPF account gets matured after the completion of 15 years from the end of the year in which the account was opened. Aside from the post office, several banks in India offer PPF facility.

PPF INTEREST RATE 2020:
PPF interest rate is revised quarterly by the government. Currently, the scheme is offering 7.9 per cent interest which is compounded annually.

How to apply for the Public Provident Fund (PPF) Amendment Scheme through SBI?

In order to apply for the PPF scheme, you have to fill Form A and submit it at any SBI branch with relevant documents. The PPF account will be opened in one of the branches. Mention the name of the branch where you wish your Public Provident Fund (PPF) account to be opened on Form A. Only one PPF account can be maintained by an Individual, except an account that is opened on behalf of a minor.

What are the documents required for opening a PPF account with SBI?

  • PPF account opening form (Form A)
  • Nomination Form
  • Passport size photograph
  • Copy of PAN card/ form 60-61
  • ID proof and Residence proof as per Bank’s KYC norms

What is the eligibility for investing under PPF Scheme?

  • A Public Provident Fund (PPF) account can be opened by resident Indian individuals and individuals on behalf of minors. Only one PPF account can be maintained by an individual, except an account that is opened on behalf of a minor.
  • A PPF account can be opened either by the mother or father on behalf of their minor son or daughter; however, the mother and father both cannot open PPF accounts on behalf of the same minor.
  • Grand-parents cannot open a PPF account on behalf of minor grand-child; however, in case of death of both the father and mother, grand-parents can open a PPF account as guardians of the grand-child.

What is the minimum and maximum amount that can be invested in the PPF account?
The minimum deposit amount is Rs 500 per annum and the upper ceiling limit is Rs 1,50,000 per annum.

What happens if you fail to deposit any amount in one or more financial years?

A penalty of Rs 50 will be levied per year of default, if the customer doesn’t deposit the minimum deposit amount of Rs 500 on the completion of the financial year.

Can one extend the tenure of a PPF investment beyond the maturity period?

A customer can extend the tenure of a PPF investment for a block period of 5 years beyond the maturity period by submitting Form H within one year from the date of maturity.

Can one terminate or close the PPF account before maturity?

As per the PPF (Amendment) scheme 2016, premature payment is allowed only after the account or the account of the minor account holder of whom he/she is the guardian has completed five financial years, where:

The amount is required for the treatment of serious ailments or life-threatening diseases of the Account holder, spouse or dependent children or parents, on production of supporting documents from competent medical authority; That the amount is required for higher education of the account holder or the minor account holder, on production of documents and fee bills in confirmation of admission in a recognized institute of higher education in India & abroad.

Now, PPF account can be closed prematurely on change in residency status of the account holder on production of a copy of passport and visa or income tax return.

PPF WITHDRAWAL:

Customer can make one withdrawal every year, from the 7th financial year, of an amount that does not exceed 50% of the balance of the customer credit at the end of the fourth year immediately preceding the year of withdrawal or the amount at the end of the preceding year, whichever is lower.

Can one avail of Loan facility on PPF investment?

Customers can avail of the loan facility between third financial year to sixth financial year ie. from third financial year up to end of the fifth financial year.

How to transfer an existing Public Provident Fund (PPF) account maintained with another bank/post office to SBI?

As per the PPF scheme of the government, subscribers can transfer their PPF account from one authorised bank or Post office to another. In such a case, the PPF account will be considered as a continuing account. To enable customers to transfer their existing PPF accounts to SBI, the following process must be followed.

  1. The customer approaches the bank or the Post office where his current PPF account is held and makes an application for transfer of PPF account to SBI’s branch.
  2. Once the application is processed, the existing bank/Post office arrange to send the original documents such as a certified copy of the account, the account opening application, nomination form, specimen signature etc. to SBI branch address provided by the customer, along with a cheque/DD for the outstanding balance in the PPF account.

Once transfer in documents are received at SBI branch, customers are required to submit fresh PPF account opening form (Form A) and Nomination form (Form E/ Form F in case of change of nomination), along with their original PPF passbook. Also, the customer is required to submit a fresh set of KYC documents.

Can you access PPF account maintained with SBI through SBI net banking?

Yes, SBI offers the convenience of viewing PPF account balance, PPF passbook, transferring funds from linked savings account online and viewing PPF account statement online in the SBI net banking account.

Is there any provision for standing instructions for periodical credits to PPF account? 

Yes, there is a provision for giving standing instructions on SB or current account for crediting PPF account. Standing instructions can also be given online for crediting PPF account on a periodical basis through internet banking. ECS mandate is also available for subscription to PPF a/c by customers having an account with other banks.

PPF CALCULATOR:

You can use online PPF Calculator to calculate PPF maturity value, interest earned, loan against PPF and PPF withdrawal amounts instantly. There are multiple PPF calculators available online. SBI is one of the banks offering PPF to customers and non-customers. Using an SBI PPF calculator makes it easier for you to calculate your returns based on the available rate of interest and tenure.