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HOW TO OPEN A PPF ACCOUNT IN BANKS

The person can start investing into the PPF account with an amount as low as Rs. 500. The maximum contribution to the PPF account that can be made in a financial year is Rs. 1,50,000.

The current interest rate on PPF accounts is 7.1% for the quarter starting from 1st April 2021 and the tenure of the PPF account is 15 years. This tenure can, however, be extended at the discretion of the investor in blocks of 5 years.

The facility to open a PPF account is available in all the post offices across the country and also in many affiliated/authorized banks. The list of such authorized banks is given below.

  • Allahabad Bank (online facility available)
  • Andhra Bank
  • Axis Bank (online facility available)
  • Bank of Baroda
  • Bank of India (online facility available)
  • Bank of Maharashtra
  • Canara Bank (online facility available)
  • Central Bank of India (online facility available)
  • Corporation Bank
  • Dena Bank
  • HDFC Bank (online facility available)
  • ICICI Bank (online facility available)
  • IDBI (online facility available)
  • Indian Bank
  • Indian Overseas Bank
  • Oriental Bank of Commerce
  • Punjab National Bank
  • State Bank of India (online facility available)
  • Syndicate Bank
  • UCO Bank
  • Union Bank of India
  • United Bank of India
  • Vijaya Bank

Some of the banks from the above list have the facility to provide online facilities from opening and operating the account to transferring the funds to the account as well. However, some of the banks from the above list provide for only online transfer of funds. The complete process of opening an account online is not available with such banks. The applicant can fill the form online and submit the necessary KYC documents by physically going to the branch of the bank.

The list of such banks that provide for only online transfer of funds and not a complete online procedure to open an account is provided here.

  • State Bank of India or SBI 
  • ICICI Bank
  • HDFC Bank 
  • Canara Bank
  • Axis Bank
  • Central Bank of India
  • IDBI
  • Allahabad Bank 
  • Bank of India (BOI)

Eligibility to open a PPF account

  • A person who is a resident Indian is eligible to open a PPF account either in his/her own name or on behalf of a minor or a person of an unsound mind.
  • This scheme is not open to NRIs. Hence if a person becomes an NRI post opening a PPF account, such account, although can be held till the full term of 15 years, is not eligible for extension available of 5 year blocks.

Procedure to Open a PPF Account

A person can open a PPF account either by physically visiting the post office or the authorized bank, filling the application form for the same and submitting it along with the necessary documents required as per the scheme along with any additional documents required as per the KYC norms of the bank.

The process to open a PPF account online is more or less similar in case of all the authorized banks. Some banks, as mentioned above, do not provide a complete online process to open a PPF account. The investor has to physically visit the bank’s branch to complete the process of opening the PPF account. While some banks provide a complete online procedure thereby eliminating the need to physically visit the bank. The process in both the cases is mentioned below.

Partial online process to open the PPF accounts (e.g. SBI)– 

  • The very first step or the basic requirement for opening the PPF account online is access to the bank’s Net Banking facility. The user has to first have an account with the bank to avail the online service for opening the PPF account and can then login to the Net banking portal of the bank by using the User ID and password generated.
  • The user can then apply for a new PPF account by clicking on the link available for the same. At this point, the user will have to generally fill in the basic details required apart from details like nominee details, minor’s details (if the account is opened on behalf of a minor), etc.
  • The user has to further enter the details like the branch code which is a mandatory requirement.
  • 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.
  • This is the final step post in which the PPF account is created and the PPF account number will be displayed at the Net banking portal.
  • The user has to then 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.

Complete online process to open the PPF accounts (e.g. HDFC)– 

  • The primary requirement in this case as well is the access to the bank’s NET banking facility which can be gained by having a savings bank account with the issuing bank. After opening an account with the bank, the account holder will get the User ID and password to login to the Net Banking facility.
  • The user can then start the process to open the PPF account online by clicking the tab for the same under the accounts section.
  • The details required to be filled in at this point include the bank details, nominee details, etc. and certain details that are already available with the bank are auto filled.
  • 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.
  • Upon verification of the details 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.

Documents required for opening a PPF account

The list of documents required for opening a PPF account is,

  • KYC documents to verify the identity of an individual (Aadhaar card, Voter ID, Driver’s License, etc.)
  • PAN card.
  • Proof of Residential address.
  • Nominee Declaration Form (Form E).
  • Passport sized photograph

About PPF account opening banks

Public Provident Fund (PF) is one of the most popular and sought after savings instruments in the country. It has an array of features and benefits that place it above or give it a niche over other savings instruments available in the market. The various benefits of PPF include higher and assured returns, tax benefits, accessibility, loans against the PPF account, etc.

FAQs: How to open a PPF account in Banks?

1. Who can open a PPF account?

Any person who is a resident of the country can open a PPF account in his/her name or on behalf of a minor or a person of unsound mind.

2. What is the tenure of a PPF account?

he minimum tenure of a PPF account is 15 years.

3. Where can a person open a PPF account?

A person can open a PPF account in any post office across the country or any of the authorized banks in their authorized branches.

4. What is the current interest rate on PPF?

The current interest rate on PPF is 7.1% p.a.

5. Does the applicant have the option to apply for PPF online?

Some of the banks offer the applicant to apply for opening of the PPF account in partial or complete online procedure depending up on the bank.

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