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Introduction

ICICI Bank (Industrial Credit and Investment Corporation of India) is one of the top four banks in the country. It has a huge domestic presence as well as international presence with subsidiaries and representative offices in many countries across the globe. The bank has many products and services like insurance, credit, loans, deposits, savings schemes, NRI banking, internet and mobile banking among others for its retail and the corporate customers all over the world.

Public Provident Fund (PPF) is one such savings scheme that is offered by the bank to its retail customers. PPF is a government backed savings scheme that is aimed at providing retirement benefits as well as building a corpus fund that the investor can use in case of emergencies or any other expenses that they may face. Investments in PPFs have been a popular choice for the investors since the time of its introduction in 1968. This is due to the various features and benefits that are attached to the PPFs that make it a better investment option in the market among its peers.

Eligibility for ICICI PPF Account

The eligibility criteria for ICICI PPF account is the basic or the general eligibility criteria that is applicable for the PPF Scheme. The details of the same are given below.

  • The basic criterion for being eligible for PPF is that a person needs to be a resident of the country.
  • There are no age limits for opening a PPF account.
  • Joint holding in PPF accounts is not permitted under the rules of the scheme. Also, the scheme does not permit HUFs to invest or open a PPF account.
  • A person can also open an ICICI PPF account on behalf of 
    • Minor
    • A person of unsound mind

The scheme places certain restrictions for parents to open a PPF account on behalf of their minor son or daughter stating that both the parents are not allowed to open a PPF account for the same minor child. They can open a PPF account for each child in the case of two children or either parent can open a PPF for the minor child in case of a single child.

The grandparents of a minor can open a PPF account on behalf of their grandchild/grandchildren as their guardians if both the parents of such minor are dead.

  • The scheme also has restrictions with respect to the NRIs which do permit them to invest in PPF. If a person who has already invested in PPF becomes an NRI later, such a person is allowed to continue to hold his/her investment in PPF till the maturity term of 15 years. The benefit of extension of the account for blocks of 5 years each is not extended to such accounts.

Procedure to open a PPF account in ICICI

ICICI Bank offers easy procedures to open a PPF account to the individuals. The process is further simplified for existing ICICI customers/account holders as they can also avail the online registration or PPF account. Any person who is a resident of the country can open a PPF account in ICICI bank by simply visiting any of the nearest designated branches and submitting a duly filled and signed Form A (application form). This has to be accompanied with the requisite KYC documents as per the norms of the bank. The scheme also requires the person to submit a nomination Form E which is an essential part of completing the application.

ICICI Bank also offers a complete online procedure to its existing customers or account holders for starting a PPF account. Such complete online procedure is available only with select banks in the country while others offer a partial online procedure.

The details of the online procedure available with the bank are,

  • The basic requirement in case of opening an online PPF account is the access to the bank’s NET banking facility. Such access can be sought by having a savings bank/current bank account with the bank. The account holder will be issued a User ID and password to login to the Net Banking facility post opening an account with the bank.
  • The user can then start the process to open the PPF account online selecting ‘My Accounts’ and then selecting ‘PPF Accounts’.
  • The user has to click on ‘Open Now’ and then fill in the details required such as the bank details, nominee details, etc. The portal has the facility to auto fill certain details that are already available with the bank. After completely filling the required details the user has to click ‘Proceed’.
  • The user will then get an OTP on the active registered mobile number which will be used to authorize the instant opening of the account.
  • Up on verification of the detail post such authorization, the user will get the PPF account number displayed in his/her Net Banking details and can then transfer the required funds online.

Other points to remember in opening an online PPF account with ICICI Bank – 

  • The user is not provided with the challan or Form B for the online fund transfer made by him/her towards the PPF account opened in his/her name or on behalf of a minor.
  • The customer is required to take a print of the online application or form filled by him/her for opening the PPF account and submit it at the nearest designated ICICI Bank branch after signing it and affixing a recent photograph. Such application has to be accompanied with a copy of PAN and any other KYC documents as required.
  • If the PAN of the customer is not updated or is not correct, he/she will not be allowed to make any deposits unless this issue is cleared by physically visiting the nearest ICICI Bank branch and updating the same.

Documents required for ICICI Bank PPF Account

The documentation required by ICICI Bank to open a PPF account is fairly basic and simple. The details of the same are,

  • Account opening application - Form A (Duly filled/ Signed Printout of Form A which is filled online).
  • Self attested copies of identity proof – Aadhaar, PAN, Driving License, Voter ID, etc.
  • Address proof of the individual as per Know Your Customer (KYC) norms (Passport, Aadhaar Card, Electricity Bill etc.)
  • Nomination form
  • Passport Size Photographs.

How to Deposit in PPF

The deposit limits under PPF during any financial year are,

  • Minimum Rs 500 
  • Maximum Rs. 1,50,000

Such investment in PPF can be made via any of the following ways

  • Direct debit from the existing ICICI savings or current bank account of the investor.
  • Online transfer from other bank account of investor via NEFT/ ECS
  • Payment in cash or cheque or demand draft.

Features and Benefits of ICICI Bank PPF account

The investor gets various features and benefits of opening a PPF account with SBI which make it a preferred choice among the available options. The details of the same are provided here.

  • The normal tenure of the PPF account is 15 years. However, an eligible investor (not an NRI) is allowed an extension of such account up on his/her discretion for one or more blocks of 5 years each.
  • The contributions to the PPF account attract a lot of tax benefits. The maximum contribution that can be made each year is Rs. 1,50,000  beyond which, such contribution is not eligible for any interest or tax benefits.
  • Also, 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 current rate of interest offered on ICICI PPF accounts is 7.9% per annum with effect from 1st October, 2019.
  • Such interest is paid on the 31st March of every year that the investment is held.
  • The bank allows the investor to view the PPF statements online.
  • The scheme also provides the facility to nominate one or more persons to get the proceeds / corpus fund in the PPF account in the event of death of the investor.
  • Such nomination under the PPF scheme can be done by submitting a Form E in this regard.
  • In case of multiple nominations, the investor can define the shares of each of such nominees.
  • The investment in PPF can also be used as a collateral/ security against loans. 
  • Furthermore, the investor is also allowed withdrawals from his/her PPF account.
  • The limit or extent of such loans and withdrawals is determined up on the age of the account i.e. the duration for which it is held and the amount available in the account.
  • The investor is also allowed to transfer the PPF account to any of the other designated branches of the bank or any other bank or any of the post offices across the country or vice versa up on a written request from the investor.

Loans against ICICI Bank PPF account

The bank also allows the investors to avail loans against their PPF account. Some of the highlights pertaining to such loans are,

  • The investor has to submit Form D along with a written application for applying a loan with the bank.
  • According to the rules of the PPF scheme, PPF account of the investor is eligible for a loan after the completion of 3 years but not more than 6 years of such PPF account.
  • The bank allows an investor to apply for multiple loans against the PPF account subject to the prevailing regulations of the bank.
  • The prevailing interest rate on loan against PPF is 1% per annum for loans taken on and after 12th December, 2019 as against 2% per annum that was previously charged on such loans.

Withdrawal from PPF Account

The scheme allows the investor to withdraw any amount from the PPF account only after the maturity of the account i.e. after the completion of 15 years.

At such time, the investor can withdraw the entire corpus fund along with the interest accrued on such investment. Withdrawal of such amount at the time of maturity is eligible for tax exemption under the provisions of the Income Tax Act, 1961.

The investor is allowed to avail partial withdrawals from the PPF account after the 7th year. However, the bank permits premature withdrawals from the PPF account to the extent of 50% of the balance available under the PPF account at the end of 4th year.

Such early withdrawal from the PPF account is permitted only under certain circumstances such as,

  • Expenses for treatment of life-threatening diseases for the family members of the investor (parents, spouse, or children). The investor has to provide supporting documents like medical reports from a competent medical authority in this regard.
  • Expenses related to the education of the account holder or a minor account holder. The supporting documents that the investor has to provide in this regard are the proof of admission fees from a recognized university.

Contact details of ICICI Bank

The bank has various ways for the investor to contact the bank and resolve any of the queries or issues that they may face with regards to their PPF accounts or any other service that they may require. The contact details of the bank are enlisted below.

  • Toll free numbers – 1860 120 7777 (personal banking domestic number)

+91 40 7140 3333 (personal banking number for domestic customers travelling abroad)

  • Alternate numbers for personal banking – 
Citynumber

Delhi

011 33667777

Mumbai

022 33667777

Kolkata

033 33667777

Chennai

044 33667777

The customers can also call on the general number 1800 200 3344 between 9 am to 6 pm from Monday to Friday to register their complaints or grievances. The customers have to provide a service request number which is not more than 2 months old in order to process their grievance or complaint.

The customers can also post any general query on the link to their customer care portal and get prompt answers for the same.

ICICI Bank also has a detailed list of all the designated branches that are eligible to offer the opening of PPF accounts on its website. Customers can find this information under the following link

ICICI bank Personal Products Investments PPF PPF Designated Branches

FAQs: ICICI Bank PPF Account

1. What is the age criterion for investing in PPF?

There is no age bar or limit for investing in PPF accounts.

2. When can a person withdraw from the PPF account without attracting any tax implications?

A person can withdraw the entire corpus fund and the interest income generated thereon after the maturity of the account which is at the completion of 15 years.

3. Who is specifically excluded from opening a PPF account?

The scheme specifically excludes NRIs from opening a PPF account.

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

The current rate of interest on PPF accounts is 7.9% from 1st October, 2019.

5. When can a person avail loans from the bank?

A person investing in PPF accounts can avail a loan against his/her investment only after the completion of the 3rd year of the PPF account but before the completion of the 6th year of such account.

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