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Introduction

Punjab and Sind Bank is a public sector bank and has its headquarters in the national capital of the country. The bank caters to various segments of retail and corporate banking like MSME banking, agricultural banking, international banking, digital banking, various government schemes, priority banking among many other services. The bank provides various savings schemes for its customers so as to give them the maximum possible benefit and assistance in meeting their needs and desires like any medical emergencies or any planned or unplanned expenses.

PPF accounts of the bank are available in the fifty branches of the bank across the country that have been authorized to accept subscriptions under the scheme. The list of the bank’s designated branches is available at the official website of the bank.

Features and benefits of the PPF account of the bank

The highlights or the main features of the PPF accounts are mentioned below.

Tax benefits –  The investment in PPF is still a very popular option even after decades of its introduction due to the various tax benefits attached to it. The interest earned on the investment each year is tax-free as well as the entire accumulated fund at the time of maturity of the account. Contributions made to the PPF account each year are also eligible for tax deduction under section 80C of the Income Tax Act, 1961.

Contributions –  According to the PPF scheme, an investor can contribute a minimum of Rs. 500 to a maximum of Rs. 1,50,000 to his/her PPF account during any particular year via Form B available online or the paper form available at the bank’s branch. Contribution in excess of the given limits is not eligible for any tax benefits.

Tenure – The maturity period of the PPF account is 15 years. The investor can extend the PPF account beyond this maturity term for one or more blocks of 5 years. The investor has to apply for the same within one year from the date of maturity.

Rate of Interest –  The rate of interest on the PPF accounts is decided on a quarterly basis by the Government of India and is currently at 7.9% per annum effective from 1st January 2020.

Loans against PPF accounts –  The investors can avail of a loan against their PPF account after the completion of one financial year from the end of the year in which the account was opened but before the completion of 5 years. An investor is not eligible for any loans after the completion of the 6th financial year from the year in which the account was opened.

Nomination – The bank allows nomination facility on the PPF accounts wherein the investor can nominate one or more nominees to the PPF account (maximum 4). The investor can also direct the share of each nominee. As well as change the nomination and share of each of such nominees at the discretion of the investor.

Transfer of PPF account –  The investor can transfer his/her PPF account to any of the branches of the bank or to any post office and vice-versa.

Withdrawal from the account –  The investor is allowed to withdraw from his/her PPF account after the completion of 5 years from the year in which the account was opened. Withdrawals are restricted to one per year.

Documents required for BOM PPF Account

The documentation required by BOM to open a PPF account is fairly basic and simple.

  • Application - Form A (Duly filled and signed).
  • Two passport size photographs.
  • Self attested copies of identity proof – Aadhaar, PAN, Driving License, Voter ID, etc.
  • Self attested copies of Address proof of the individual as per Know Your Customer (KYC) norms (Passport, Aadhaar Card, Electricity Bill etc.)
  • Nomination Form E

Eligibility for PPF

The eligibility details under PPF are mentioned below.

  • The residency of the country is the main criterion for eligibility to open a PPF account.
  • There are no age restrictions under PPF.
  • Joint accounts and transferability of PPF accounts are not allowed.
  • The scheme does not permit HUFs to invest or open a PPF account. 
  • A person can also open an PPF account on behalf of 
    • Minor
    • A person of unsound mind

Such an account can be opened by either of the parents of the minor or person of unsound mind or by their grandparents or guardians in the absence of the parents.

One account can only be opened for one child or person.

  • NRIs are not allowed to invest in PPF. A person, who has already invested in PPF and becomes an NRI later, is allowed to continue to hold his/her investment in PPF till the maturity term of 15 years but will not get the benefit of extension of the account for blocks of 5 years each.

Deposit Limits for PPF

  • The minimum tenure under the scheme is 15 years beyond which extension of 5 years each is allowed up on application via Form H.
  • An investor can start a PPF account with an amount as low as Rs. 100 and the yearly contribution limits are a minimum of Rs. 500 to a maximum of Rs. 1,50,000 which have to be made each year to keep the account active.
  • The maximum contributions that can be made during a particular month are two and the total number of contributions that a person can make in a particular year cannot be more than 12 contributions.
  • The investor can make a lump sum contribution to the PPF account or a maximum of 12 contributions during a particular year.

Dormant or Inactive PPF account

In the absence of continuous contributions to the PPF account for a period of 15 years, such PPF account will become inoperative or dormant.

A person is eligible to earn interest on dormant accounts but the benefits available on such accounts are limited. (for example, loans against such accounts are not permitted).

A person can revive such dormant account by in the following manner,

  • The investor has to submit a written request at the issuing post office or bank branch where the account is based in order to initiate the process of reviving the dormant account.
  • The investor is required to pay the minimum yearly deposit amount of Rs.500 along with a penalty of Rs.50 for each year the account has been inactive.
  • The investor will have to visit the branch of PPF account as well to complete the verification process.

Mode of payment of amount in PPF

The modes of investment in the PPF account of the bank are,

  • Online mode (via NEFT/ ECS)
  • Direct debit from the investor’s savings or current account with the bank
  • Payment in cash or cheque or draft.

PSB PPF Interest Rate

  • The interest on PPF accounts is determined and controlled by the Government of India. These rates of interest are subject to a quarterly change from time to time.
  • The current rate of interest decided by the government and offered by the bank is 7.9% per annum which is effective from 1st January 2020. Such 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.
  • 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 on an annual basis.

PSB customer care for PPF

The customer care of the bank is available 24x7 for the customers to contact the bank and resolve all of their queries and concerns and also give any feedback. The customers can contact the bank in the following manner.

Email Id - psbmobile[at]psb[dot]co[dot]in,

Phone - 011-40045508/516

Internet banking cell – 

Email Id - psbonline[at]psb[dot]co[dot]in,

Phone - 011-40045520/23

FAQs: Punjab & Sind Bank PPF Account

1. What is the minimum age to open a PPF account?

There is no age restriction in opening a PPF account.

2. Where can a person find the required forms to be submitted with respect to the PPF accounts?

The forms required for PPF accounts are available online at the bank’s website or at the bank’s designated branch.

3. When is the interest on a PPF account paid to the investor?

The interest is credited to the account of the investor on the last day of each financial year that the investment in PPF is held.

4. What are the specific exclusions from eligibility under PPF?

NRIs, HUFs and Trusts are specifically excluded from opening a PPF account.

5. When is the rate of interest decided and by whom?

The rate of interest is decided by the Government of India on a quarterly basis.

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