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Key Highlights of BOB PPF Account


Rate of Interest

7.1% annually


Can be opened at any age by any resident Indian (HUFs and NRIs not allowed)


15 years


Facility available for maximum 4 nominations

Tax Benefit

Tax deduction u/s 80C up to Rs. 1,50,000

Minimum Deposit amount

Rs. 500

Maximum deposit amount

Rs. 1,50,000

Eligibility Criteria to Open a PPF Account

The PPF accounts have no age restrictions or limits for investment. An eligible person can invest in the PPF account anytime during the year and at any age.

The scheme is also available for investment to the minors and persons of unsound mind. However, such eligible persons above cannot invest in their own name and therefore, either of the parents or guardian in absence of parents or grandparents can invest on their behalf under the scheme.

The scheme, however, specifically excludes the following persons from investment under the PPF accounts.

  • NRIs (if a person becomes an NRI after investment in PPF, such person is allowed to hold the investment till maturity but is not allowed the benefit or facility of extension under the scheme).
  • HUFs (the scheme does not permit the HUF to hold or invest in PPF)

Documents required for PPF investment

The bank requires the following documents for investment under PPF accounts.

  • Completed Form A (duly signed)
  • Recent Passport Size Photographs
  • Address proof (Aadhaar card, PAN card, Electricity bills, Water Bills, etc.)
  • Nomination Form E

Bank of Baroda PPF Interest Rate

The interest on PPF is determined and controlled by the Government of India. These rates of interest are subject to a quarterly or half yearly change from time to time.

The current rate of interest decided by the government and offered by the bank is 7.1% per annum which is effective from 1st April 2021. The interest on the PPF accounts is calculated on the minimum balance available in the PPF account from the 5th day of the month to the last day of the month.

This interest is credited to the PPF account on the last day of each financial year i.e. on 31st of March of each year that the investment is held by the investor. The interest then becomes part of the corpus fund that is being formed and is thus compounded annually.

Features and benefits of Bank of Baroda PPF account

The investment in a PPF account is an attractive option on account of the various features and benefits that the scheme and the bank offer. Some of such features are detailed hereunder,

  • The primary and one of the most relevant benefits from the PPF account is the tax savings that the individual gets. These tax benefits include tax exemption of the entire PPF amount at the time of withdrawal based on maturity.
  • The other tax saving that the investor gets is pertaining to the interest accrued each year which is also exempt from any tax implication.
  • Furthermore, the contribution to the PPF accounts up to Rs. 1,50,000 is eligible for a deduction under section 80C of the Income Tax Act, 1961.
  • The tenure of the PPF account is of 15 years. The investor also has the option to further extend the investment for blocks of 5 years each.
  • The bank also allows nomination of the PPF account under the scheme. Such nomination takes effect in the event of the death of the investor. The scheme also permits multiple nominations where the investor can stipulate the share of each nominee.
  • The bank permits the investor to secure loans against their PPF accounts. 
  • The investor can withdraw from their PPF account before maturity but only after the completion of 5th year from the date of investment.
  • Such withdrawal is permitted only up to the extent of 50% of their balance in the PPF account.
  • PPF accounts can be transferred from one branch of the bank to another or from one bank to another post office or another bank and vice versa.
  • Apart from the above features, the bank also provides the online facility of viewing the PPF statements or depositing the funds to PPF account using the online mode of transfer to its existing customers, i.e. customers/investors already having a savings or current account with the bank.

Loans against PPF accounts

The bank allows an investor to apply and avail for a loan against their PPF account but the main condition for the same is that such loans are eligible only after the completion of 1st year from the date of start of investment in PPF but not beyond the completion of 5 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 second year that immediately precedes the year in which such loan was applied.

The bank stipulates that a person has to repay the loan already sought or availed against the PPF account before applying for another such loan. And a person can get only one loan per year. The maximum duration to repay the principal amount of the loan is 36 months from availing such loan and the interest on such loan has to be repaid in maximum 2 monthly installments.

The interest charged on loans availed against PPF is 1% per annum. In the event of delay in the repayment of loan availed against the PPF account or if the loan is only partly paid in 36 months, such loan will be charged at an interest of 6% per annum instead of the standard 1% per annum.

The bank also states that 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.

If the investor dies prior to repaying the loan availed against the PPF account, interest dues on such loans are to be paid by the nominee or the legal heir of the investor by adjusting the same at the time of final closure of the account.

Deposit limits in PPF accounts

The PPF account has the minimum and maximum deposit limit per year that the investor has to adhere to. This deposit limit pertains to 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 deposit limits regarding the PPF accounts are,

  • A person has to deposit a minimum of Rs. 500 each year for a continuous period of 15 years in order to keep it active.
  • The maximum amount that the person can invest under the PPF scheme is Rs. 1,50,000 per annum.
  • Any amount invested beyond this limit is not eligible for any interest or any tax benefit.
  • The amount to be invested in the PPF account can be deposited in a single lump sum payment or in monthly installments.
  • Such monthly installments cannot be more than 2 per month as well as beyond 12 in any particular year.

Dormant or Inactive PPF account

An account that does not receive a continuous contribution for a period of 15 years is deemed to be dormant or inoperative.

Such dormant accounts will have limited benefits as compared to the normal PPF accounts (like no loan facility) however, are still eligible to earn interest at the same rate as any other PPF account.

A person can revive such dormant accounts to its full functions by following the steps below,

  • The investor has to submit a written request at the issuing post office or branch of the bank.
  • Along with the written application, the investor has to pay the minimum yearly deposit amount of Rs.500 for each year that the account had remained inactive.
  • The investor will also be required to pay a fine of Rs.50 for each year the account had been inactive.
  • After fulfilling the above steps, the investor has to then visit the branch of PPF account once more to complete the verification process.

Contact details of Bank of Baroda

Customers can contact the customer care of the bank to get any details regarding their PPF accounts or to address any concerns regarding the same at the following Toll Free Numbers.

Customers can also contact the bank at their home branch or any other branches to get any information or to raise any complaints regarding PPF.

Bank of Baroda has a virtual assistant ‘ASK ADI’ to help with any assistance or information that the customers may require regarding any of the products and services of the bank.

The contact details for the NRI customers to contact the bank from outside India are

Besides the above ways to contact the bank, customers can also contact the bank at their Head Office and the Corporate Office at the following addresses.

Head Office

Postal address - Bank of Baroda
Baroda Bhavan
7th Floor, R.C. Dutt Road,
Vadodara-390 007, (Gujarat) India

Telephone - (0265) 2316792

Email – cs[dot]ho[at]bankofbaroda[dot]com

Corporate Centre

Postal address - Bank of Baroda,
Baroda Corporate Centre,

Plot No. C-26, Block G,
Bandra Kurla Complex,

Bandra (East),

Mumbai 400051

Telephone - (022) 6698 5000-04

About Bank of Baroda PPF Account

Bank of Baroda is a multinational bank that has become the second largest public sector bank in the country post its merger with other public sector banks i.e. Vijaya Bank and Dena Bank. This bank has an array of investment options along with the government savings schemes that the customers can choose from apart from the many products and services that the bank offers to cater to its national and international customers.

The Public Provident Fund started by the government in 1968 has been a constant tax savings tool of the public. It is used as an effective mode of investment and building a support for the individual in his/her retirement. PPF accounts offered by the bank are among the favoured accounts in the market due to the ease of operations and online accessibility available as well.

FAQs: Bank of Baroda PPF Account

1. Are the PPF accounts transferable from one bank to another?

The investor has the option to transfer his/her PPF account from one branch of the bank to another branch or from one bank to another. Also, the investor can also transfer the PPF account from one post office to another or from a bank to a post office and vice versa in any other combinations.

2. Is the investor allowed to hold a PPF account if such a person is a part of HUF?

The scheme specifically excludes the HUF from investing or holding a PPF account.

3. What is the duration of extension that is allowed on a PPF account?

The investor (other than an NRI) is eligible to extend his/her investment in the PPF account for blocks of 5 years each.

4. What is the maximum amount of investment that can be done under the PPF account?

The maximum amount that can be invested under the PPF account is Rs. 1,50,000 beyond which the contribution is not eligible for any interest or ant tax benefit.

5. How can a person revive the dormant PPF account?

A person can revive the dormant PPF account by submitting a written application for the same along with the minimum required amount/contribution of Rs. 500 and a penalty of Rs. 50 for each year that the account was dormant.

Bank Of Baroda Ppf Account - Customer Reviews

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