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Introduction

PF accounts are one of the many savings schemes offered by Andhra Bank. PPF was introduced by the government with a view to give retirement benefits to all the citizens of the country even those who do not have an EPF account. Being a nationalized bank, all the branches of the bank are eligible for opening a PPF account. The investors can also get the details of their PPF account via the passbook given to them at the time of opening the account.

Eligibility for Andhra Bank PPF Account

The eligible applicants under PPF are all the residents of the country including

  • Individuals, 
  • Association of persons
  • Body of individuals

But does not include the following,

  • NRIs
  • HUFs

Documents required for opening a PPF account

The list of documents required for opening a PPF account with the bank are 

  • Completed and signed Form A (Print out of downloaded form or physical form)
  • Duly filled pay-in Slip Form B for initial contribution to open the account.
  • Nomination Form E duly filled and signed (verification required for the same)
  • Identity Proof of the investor (Aadhaar Card, PAN Card, Voter’s ID, etc.)
  • Address Proof of the investor (Aadhaar Card, Electricity Bill, Water bill, Gas bill, etc.)
  • Two recent passport size photographs

Process of opening a PPF account with Andhra Bank

Andhra bank does not have an online facility to open a PPF account. The investor has to physically visit the nearest branch of the bank to open the PPF account. The list of KYC documents mentioned above is to be mandatorily submitted by the investor at the time of application for PPF account. The procedure of opening a PPF account is detailed hereunder.

  • The investor has to visit the nearest branch to get the PPF account opening Form A or download the same online available at the bank’s website.
  • The printout of the downloaded form or the paper form has to be duly filled and to be submitted at the nearest Axis Bank Branch.
  • The investor also has to provide the initial deposit via a cheque/draft/cash as well as fill in Form B for making the initial deposit to open the PPF account. The minimum deposit to be made is Rs.500.
  • The investor also has to submit recent passport size photographs and self-attested photocopies of KYC documents such as PAN card, Aadhaar card, etc. along with originals which will be verified against originals.
  • Once the3 verification process is done to the satisfaction of the bank, the PPF account of the investor with the bank will be opened.
  • The investor will then receive a PPF account passbook with all the details of his/her PPF account.

Post opening the PPF account, the investors can check the balance in their PPF accounts either through the online mode available with the bank or through the offline mode i.e., by physically visiting the branch of the bank.

Features and Benefits of Andhra Bank PPF account

PPF investment is an attractive option across all the age groups of the country due to the various features and benefits that the scheme offers as compared to the other similar options available in the market. The details of the same are provided here.

Tenure –  The tenure of the PPF account available is 15 years. An investor is allowed the extension of such an account based on his/her discretion for one or more blocks of 5 years each.

Contribution –  The minimum contribution to be made each year is Rs. 500 and the maximum contribution that can be made each year is Rs. 1,50,000. Any contribution made beyond Rs. 1,50,000 in any year is not eligible for any interest or tax benefits.

Rate of Interest –  The current rate of interest offered on PPF accounts is 7.9% per annum with effect from 1st January 2020. Such 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 so calculated is paid on the 31st March of every year that the investment is held.

Tax benefits –  The investment in a PPF account is eligible for many tax benefits. 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.

Nomination –  The investor can also file for nomination under the PPF scheme by submitting a Form E in this regard. The bank allows the nomination of one or more persons under the PPF scheme offered by the bank. The investor can also define the shares of each of such nominees as well as change the percentage of share or nomination as the case may be via Form F.

Loans and withdrawal –  The bank also provides the facility of loans and withdrawals against the PPF account of the investors. However, the limit or extent of such loans and withdrawals is determined up to the age of the account i.e. the duration for which it is held and the amount available in the account.

Transfer of PPF account –  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. The bank does not charge any fees for such transfer service.

Deposit limits in PPF accounts

The PPF account is subject to a minimum and maximum deposit limit per year which has to be followed by the investor in order to keep the account active. These deposit limits state the amount of deposit a person can make as well as the number of times that a person can deposit in his/her PPF account.

The details of such limits are,

  • A minimum of Rs. 500 each year is required for a continuous period of 15 years in order to keep it active.
  • The maximum contribution under the PPF scheme is restricted to Rs. 1,50,000 per annum.
  • Any contribution beyond this limit is not eligible for any interest or tax benefits.
  • The investor can make a single lump sum payment or in monthly instalments for contribution to PPF account.
  • However, monthly instalments to PPF accounts cannot be more than 2 per month as well as beyond 12 in any particular year.

Loans against PPF accounts

  • An investor is given the benefit of availing a loan against his/her PPF account according to the scheme.
  • The bank allows an investor to apply and avail for a loan against their PPF account provided that such loans are eligible only after the completion of 3rd financial year from the date of start of investment in PPF but not beyond the completion of 7 years from the end of the year in which the initial investment was made.
  • The maximum amount that can be availed as loan is 25% of the balance in the PPF account at the end of the previous two financial years that immediately precedes the year in which such loan was applied.
  • A person can apply multiple loans against his/her PPF account provided the existing loans are duly repaid before applying for another such loan.
  • A person can, however, apply for only one loan per year. 
  • The maximum duration to repay the principal amount along with the interest on the loan is 36 months from availing such loan. Such repayment has to be done is one or two or more instalments.
  • The interest charged on loans availed against PPF is 1% per annum. This rate of interest was earlier 2% per annum.
  • According to the rules of the scheme, in case of non repayment of principal amount or interest or part repayment of the same within the stipulated time, such outstanding amount shall be debited or recovered from the account of the investor.
  • In the event of death of the investor prior to repayment of the loan availed against his/her PPF account, interest dues on such loans have to be recovered from the nominee or the legal heir of the investor by adjusting the same at the time of final closure of the account.

Withdrawal from PPF Account

The scheme permits the investor to withdraw any amount from the PPF account without any tax implications only based on the maturity of the account i.e. after the completion of 15 years.

The investor can withdraw the entire amount along with the interest accrued up on such investment after maturity of the account. Withdrawal at the time of maturity gets the benefit of tax exemption under the provisions of the Income Tax Act, 1961.

The bank permits partial withdrawals from the PPF account from the 7th year. The maximum amount of withdrawal at such time is restricted to 50% of the balance available in the person’s PPF account at the end of 3rd year or 6th year. Such withdrawals are non-repayable and are allowed only once per year.

The bank permits the investor to avail early withdrawals from the PPF account under certain circumstances such as,

  • Treatment of life threatening diseases for parents, spouse or children. The investor has to submit supporting documents like medical reports from a competent medical authority.
  • Educational expenses of the account holder or minor account holder. The investor has to submit supporting documents like proof of admission fees from a recognized university.

Andhra Bank Customer care for PPF account

Andhra Bank has a dedicated customer care service to handle all kinds of general or specific queries of its customers and provide them with any kind of assistance required to carry out their banking routine. Customers can contact the bank through the following channels and get their queries or concerns resolved.

  • Toll-free number – 1800 425 1515
  • Non-toll free number - 040 23234313, 23252000 Extn: 2422, 2577 (available between 10 am to 5 pm Monday to Saturday (except 2nd and 4th Saturday)
  • Email - customerser[at]andhrabank[dot]co[dot]in

Postal address (Head Office) – General Manager

       Nodal Officer for Customer Service

       Andhra Bank

       Dr. Pattabhi Bhavan

       5-9-11, Saifabad

       Hyderabad – 500004, Telangana.

The bank also has a virtual assistant ‘Abhi’ available at the bank’s website that can assist the investors with any basic queries relating to the PPF account offered by the bank.

FAQs: Andhra Bank PPF Account

1. When can a person avail loans against their PPF account?

A person can avail loans against their PPF accounts after the completion of 3rd year from the date of opening the PPF account.

2. How is the rate of interest on the PPF account determined?

The rate of interest on the PPF account is determined by the Government of India on quarterly basis.

3. What is the current rate of interest on PPF accounts?

the current applicable rate of interest on PPF accounts is 7.9% effective from 1st January, 2020.

4. What is the eligibility criterion relating to an NRI?

NRIs are not allowed to hold or open a PPF account according to the scheme. However, if a person becomes an NRI post opening the PPF account, such person can hold the account till maturity but will not be allowed the benefit of extension of such account.

5. What is the maximum duration to repay the loans availed against PPF accounts?

A person has to repay the loan availed against the PPF accounts in a maximum of 36 months from the first day of the month after the month in which such loan was sanctioned.

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