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Introduction

Central Bank of India is a public sector bank having a huge customer base and is one of the oldest and the largest banks in the country. The bank has a dedicated spread of various products and services offered by the bank like loans, insurance, NRI banking, online banking, corporate banking and more for its national as well as international customers.

The bank being a public sector bank is authorized to offer PPF accounts to its existing customers as well as the general public. The PPF accounts offered by the bank are governed by the National Savings Institute of the Ministry of Finance. It was introduced by the Government of India in the year 1968 and is still a popular choice by the majority of the public for investment purposes as well as a tax savings instrument.

Features and benefits of Central of India PPF account

The investment in PPF accounts has been a traditionally favored investment over other government schemes due to the various features and benefits that the scheme and the bank offer. Some of such features are detailed hereunder,

  • The interest on the PPF accounts currently is at 7.9% per annum and is compounded annually.
  • Another important benefit from the PPF account is the tax savings in the hands of the individual. These tax benefits include tax exemption of the entire PPF amount at the time of withdrawal based on maturity.
  • The investor also gets exemption of the interest accrued each year.
  • 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 as well.
  • The PPF accounts require a continuous investment for a period of 15 years. 
  • The investor also has the option to further extend the investment for blocks of 5 years each.
  • The bank permits the investor to secure loans against their PPF accounts. The amount and the duration of the loan will be dependent on the balance and the number of years that such PPF account is in existence.
  • 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 is immediately before the year in which such loan was applied.
  • The interest charged on loans availed against PPF is 1% per annum.
  • The bank also allows single as well as multiple nominations of the PPF account under the scheme. Such nomination takes effect in the event of the death of the investor. The investor can stipulate the share of each nominee.
  • 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.
  • The bank also provides the online facility for PPF accounts in order to be in sync with the ever advancing banking world. Online facility includes viewing the PPF statements or depositing the funds to PPF accounts using the online mode of transfer among many other features. This benefit or feature is available only to the existing customers of the bank, i.e. customers/investors already having a savings or current account with the bank.

Eligibility Criteria for PPF accounts

The government has laid down no specific age restrictions or limits for investment under the PPF accounts. Investment under PPF can be done anytime during the year and at any age by an eligible person.

The scope of inclusion under the PPF accounts is very vast. It includes all the resident Indians, even minors and persons of unsound mind.

The restrictions pertaining to such investment is that such eligible persons above cannot invest in their own name. The investment under PPF in this case can be done by either of the parents or a guardian in absence of parents or grandparents who can invest on their behalf under the scheme.

The scheme, however, does have some specific exclusions. The details of the same are,

  • Joint 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

Documents required for opening a PPF account

The documents required to open a PPF account with the bank are,

  • Completed and signed Form A
  • Duly filled pay-in Slip Form B
  • Nomination Form E duly filled and signed
  • Two recent passport size photographs
  • Identity Proof (Aadhaar Card, PAN Card, Voter’s ID, etc.)
  • Address Proof (Aadhaar Card, Electricity Bill, Water bill, Gas bill, etc.)

Process to open a PPF account in Central bank of India

The bank offers two modes of opening a PPF account with the bank.

Physical mode of opening an account – 

A person can open a PPF account in Central Bank of India by physically visiting any of the nearest branches. The customer has to simply fill in the required forms,

  • Forms A (application Form)
  • Form B (Pay-in Slip)
  • Form E (Nomination form) 

The applicant has to submit these forms along with the necessary KYC documents as required by the bank.

Online mode of opening a PPF account – 

The bank also offers an online procedure to start a PPF account. The online procedure available with the bank is for the existing customers of the bank however, it is not available in the complete form. The investor has to visit the branch for physically submitting the required KYC documents as well as for the verification process. Upon submitting these documents, the procedure of opening a PPF account is completed.

The details of such an online process are given below.

  • The investor is required to have access to the bank’s Net Banking facility. The user can open the PPF account by using the User ID and password generated.
  • The user has to click on the link available for the application of a new PPF account available at the Net Banking portal.
  • The user will be asked to fill in the basic details apart from details like nominee/(s) details, minor’s details (if the account is opened on behalf of a minor), etc.
  • Branch code details have to be mandatorily submitted as part of the application.
  • The next step required would be the details of the nomination which need to be verified including the address details after which the user can proceed.
  • The PPF account is then created and the PPF account number will be displayed at the user’s Net banking portal.
  • The user is required to download and print the filled form and duly submit it along with the necessary KYC documents to the bank’s branch within 30 days from the date of filling the above form.

The applicant has to pay a minimum initial amount of Rs. 100 to open the PPF account. Such amount can be paid in cash or cheque or demand draft as per the convenience of the applicant.

Contact details of Central Bank of India

The customers can contact the bank for any information that they may require pertaining to the PPF accounts. The contact information that the customers can use is given below.

   Corporate Office 

   Chander Mukhi, Nariman Point

   Mumbai – 400 021

Email Id - complaints[at]centralbank[dot]co[dot]in (for domestic customers)

    agmnricell[at]centralbank[dot]co[dot]in (For NRIs)

    nricell[at]centralbank[dot]co[dot]in (For NRIs)

The bank has the facility of virtual assistant known as Cent Bot. Customers as well as potential customers can visit the bank’s website and chat with the virtual assistant to get information on any of the products and services of the bank or any other details of customer care or the functioning of the bank.

FAQs: Central Bank of India PPF Account

1. Is the investor allowed to hold a joint account under the scheme?

The scheme does not permit the investor to hold joint accounts.

2. What is the minimum amount to be deposited to open a PPF account?

The investor needs to deposit a minimum of Rs. 100 as an initial deposit to open a PPF account.

3. What is the form number for Change in nomination?

The investor can change the nomination of his/her PPF account by submitting a duly filled and signed Form F.

4. What is the maximum amount that can be deposited in the PPF account during a year?

The investor can deposit a maximum of Rs. 1,50,000 during a year.

5. Are all the branches of the bank eligible to open a PPF account?

According to the scheme, all the branches of a nationalized bank are eligible to open a PPF account.

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