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Introduction

Allahabad Bank is more than a decade old nationalized bank having its headquarters in Kolkata. The bank has a huge range of products and services like investment options, insurance, loans, corporate banking, NRI banking, and much more designed specifically for customers within the country as well as abroad.

The bank offers  a lot of government savings schemes that the customers can choose from to build their corpus fund and secure their retirement or safeguard themselves against any unforeseen expenses or calamities. Public Provident Account (PPF) is a government saving scheme that is widely popular among all the age groups of the country. It has a huge array of features and benefits that make it a preferable investment as compared to the other similar products available in the market.

Eligible Criteria and Documents required to open a PPF account

All Indian residents are eligible to open a PPF account subject to certain specific exclusions. The details of the eligibility are provided hereunder.

  • There is no age restriction to open PPF.
  • PAN card details are mandatory for opening a PPF account.
  • Parents or grandparents (or guardians in their absence) can invest on behalf of minors or persons of unsound mind.
  • One parent can open only one PPF account per minor child and such investment will be clubbed with the investment of such parent in order to determine the maximum limit of investment by the parent.
  • PPF scheme does not permit joint account holding.
  • HUFs and NRIs are not allowed to open a PPF account.
  • A person already holding a PPF account prior to becoming an NRI can continue to hold such an account till maturity but is not eligible for an extension.

Following are the list of documents that are required to open a PPF account with Allahabad Bank:

  • Form A (duly signed)
  • Two recent passport size photographs
  • Address proof and Identity Proof (Aadhaar card, PAN card, Electricity bills, Water Bills, etc.)
  • Nomination Form E

Features and Benefits of Allahabad Bank PPF account

PPF account of the Allahabad Bank is governed by the revised PPF Scheme 2019. This revised version of the scheme has a few additional updated and revised features and benefits apart from the traditional ones. The detailed list of such features and benefits is provided here.

  • As Allahabad Bank is a nationalized bank, all the branches of the bank are eligible for opening a PPF account.
  • PPF account has a maturity of 15 years. 
  • The account is also allowed an extension of his/her PPF account for one or more blocks of 5 years multiple times.
  • Such an extension can be availed within 1 year from the date of maturity.
  • The investor can also file for nomination under the PPF scheme by submitting a Form E in this regard.
  • The bank allows multiple nominations up to a maximum of 4 under the PPF scheme as well as defining the shares of each of such nominees.
  • The scheme also allows a change in the nomination as well as a change in the percentage of share of the nominees.
  • In the event of the death of the investor, the bank can repay the amount in the PPF account to his/her nominee or the legal heir before the PPF account reaches maturity provided such amount is adjusted against any outstanding loans availed against the PPF account (if any).
  • The scheme has certain limits pertaining to the contribution to be made to the account where the minimum contribution to be made each year is Rs. 500 in the multiples of Rs. 50 and the maximum contribution that can be made each year is Rs. 1,50,000.
  • Such contributions can be made each year in a single lump-sum payment or in monthly installments.
  • Also, such monthly installments cannot be more than 2 installments per month and not more than 12 installments in any particular year.
  • Contributions made beyond Rs. 1,50,000 in a year are not eligible for any interest or tax benefits.
  • The current rate of interest is 7.9% per annum and determined by the government on a quarterly basis.
  • Interest is calculated on the minimum balance available in the investor’s PPF account between the 5th and the last day of the month.
  • The interest is paid on the 31st March of every year that the investment is held and thereby compounded annually.
  • The interest is eligible for tax exemption and the investment in PPF is eligible for Tax deduction under section 80C of the Income Tax Act, 1961 up to Rs. 1,50,000.
  • The bank provides the facility of loans and withdrawals against the PPF account of the investors. The limit or extent of such loans and withdrawals is determined based on the age of the account i.e. the duration for which it is held and the amount available in the account.
  • Loans can be availed after the completion of 3rd year but not after the completion of 5th year.
  • Withdrawals from the account can be done only once in any year after the completion of 5 years from the date of opening the account. The PPF account also cannot be closed in such cases.
  • The maximum amount of withdrawal allowed to the PPF account holder is up to 50% of the balance that is available at the end of the 4th year immediately preceding the year of withdrawal or at the end of the preceding year whichever is lower.
  • The bank also facilitates the transfer of the PPF account to any of the other branches of the bank or any other bank or any of the post offices across the country as well as transfer from any such avenues upon a written request from the investor.
  • If a person becomes an NRI post-opening an account under the PPF scheme, such person can close the account prematurely i.e. before the completion of the term of 15 years by submitting a copy of his/her passport and visa or a copy of the Income Tax Return of such person.
  • The above rule is applicable only to those accounts that are opened after 12th December 2019.
  • The rate of interest applicable on such accounts is one percent lower than the normally applicable rate of interest on other PPF accounts.
  • A person can hold the PPF account even beyond maturity i.e. after the completion of the tenure of 15 years.
  • Such accounts will be eligible to avail of interest at the prevailing rate of interest.

Manner of deposit/contribution towards PPF

The minimum contribution towards the PPF account required to be made during any year is Rs. 500 and maximum that can be contributed is Rs. 1,50,000 during any particular year. The investor has to fill in Form B for any contribution made towards the PPF account. The modes of investment in the PPF account of the bank are,

  • Direct debit from existing savings or current bank account of the investor with Allahabad Bank.
  • Online transfer (via NEFT/ ECS)
  • Payment in cash or cheque or draft.

Premature closure of the Allahabad Bank PPF account

An investor can close his/her PPF account or the account held on behalf of a minor or a person of unsound mind subject to certain conditions or in a few select cases. Such premature closure can be done by duly submitting Form-5 to the branch where such a PPF account is held.

The following are some of the circumstances under which the bank permits the account holder to close the PPF account prematurely.

Medical reasons – Treatment of life-threatening disease in case of the account holder, his/her spouse, or dependent children or parents (supporting documents and medical reports confirming such disease from treating medical authority need to be submitted along with the application).

Educational Reasons –  For the higher education of the account holder, or dependent children (supporting documents and admission fees confirming such admission in a recognized institute of higher education in India or abroad have to be submitted with the application Form-5).

NRI PPF Accounts –  Since NRIs are not allowed to invest in PPF, the investor has to close the PPF account upon the change in the residency status of the account holder (copy of Passport and visa or Income tax returns have to be submitted in this regard).

Allahabad Bank PPF account Customer Care

The customer care services of Allahabad Bank are available 24x7 for the investors to connect with the bank and address any of the queries or any grievances that they may have relating to their PPF accounts. The customers can contact the bank via the following channels of communication.

  • Toll-free number – 1800 57 22 000
  • Email Id – customercare[at]allahabadbank[dot]in
  • Postal address – Allahabad Head Office, 2, N.S. Road, Kolkata – 700001
  • Other telephone numbers - 2242 0863/ 2242 0915 2242 0869/ 2210 3777 2242 0900 / 2242 0883

FAQs: Allahabad Bank PPF Account

1. When can a person open a PPF account?

A person can open a PPF account at any age as there is no restriction or specific age criterion to open a PPF account.

2. How many times can a person extend the PPF account?

There is no restriction on the number of times a person can extend the account beyond the tenure of 15 years.

3. What is the form number to be submitted for the extension of PPF account?

The investor has to submit Form H for extending the PPF account beyond the tenure of 15 years.

4. Can a person open a PPF account with any of the branches of the bank?

All the branches of Allahabad Bank are eligible for opening a PPF account.

5. What are the tax implications of the amount in the PPF account at the time of maturity?

The corpus fund of the investor in the PPF account at the time of maturity can be withdrawn without any tax implications. The entire amount along with the interest accrued over the years is tax free.

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