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Introduction

State Bank of India is a public sector bank and is the largest bank in India. It has over 24000 branches across the country and 191 offices in 36 countries worldwide, thereby having the maximum presence in the country and as well as the largest global presence among all the Indian banks. SBI caters to national as well as international customers and provides a variety of products and services suitable for all types of retail customers as well as corporate entities. SBI offers a lot of government savings schemes and many investment options for the investors to choose from in order to maximize their wealth. One such evergreen investment option provided by the bank is the investment in PPF. It is one of the most favored and sought after investments in the market due to its many benefits and attractive features and hence is still a preferred investment option to safeguard and provide for a better retirement plan even after decades of being launched by the Government of India in 1968.

PPF investment is hugely popular due to it being a corpus building as well as a tax saving investment. It is easily accessible and is open to all the residents of the country. SBI PPF account is currently the most favored account for investment in PPF among all the available options.

Eligibility for SBI PPF Account

The eligibility criteria for SBI PPF account is in sync with the general eligibility criteria for PPF and is stated below.

  • Any person resident of the country is eligible to open a PPF account for himself/herself.
  • A person can also open an SBI PPF account on behalf of 
    • Minor
    • A person of unsound mind

Furthermore, there are restrictions in place for parents to open a PPF account on behalf of their minor son or daughter. Such restriction states that both the parents are not allowed to open a PPF account for the same minor child. Both parents can open a PPF account for each child in case of two children or either parent can open a PPF for the minor child in case of a single child.

In case of death of both the parents, the Grandparents can open a PPF account on behalf of their grandchild/grandchildren as their guardians.

  • The scheme also has restrictions with respect to the NRIs and does not permit them to invest in PPF. However, such restrictions will not apply to any person who has already invested in PPF and later becomes an NRI. Such person can continue to hold his/her investment in PPF till the maturity term of 15 years but is not allowed to avail the  benefit of extension of the account for blocks of 5 years each.

Process to open a PPF account in SBI

A person can open a PPF account in SBI by physically visiting any of the nearest branches and submitting a duly filled and signed required Form A along with the necessary KYC documents as required by the bank. The person also has to submit a nomination Form E along with such application.

SBI also offers an online procedure to start a PPF account. Such online procedure is not available in the complete form i.e., an investor has to still visit the branch for physically submitting the required documents and for verification process thereby completing the procedure of opening PPF account.

The details of such an online process are given below.

  • The investor has to first and foremost have access to the bank’s Net Banking facility for which he/she needs to have a bank account. The user can then avail the Net Banking facility of the bank for opening the PPF account and can login by using the User ID and password generated.
  • To initiate the application for a new PPF account, the user has to click on the link available for the same. The user will be asked to fill in the basic details required apart from details like nominee/(s) details, minor’s details (if the account is opened on behalf of a minor), etc.
  • The user also has to enter the branch code details as they are 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.
  • Post filling the nomination details, the PPF account is created and the PPF account number will be displayed at the user’s 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.

The applicant has to pay Rs.500 which is the minimum amount required to open the PPF account. Such amount can be paid in cash or cheque.

Documents required for SBI PPF Account

The list of documents required to open a PPF account with SBI are enlisted below.

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

Features and Benefits of SBI 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 tenure of the PPF account available is 15 years. An investor is allowed the extension of such an account up on his/her discretion for one or more blocks of 5 years each.
  • The minimum contribution to be made each year is Rs. 500 and the maximum contribution that can be made each year is Rs. 1,50,000. Any contribution made beyond Rs. 1,50,000 in any year is not eligible for any interest or tax benefits.
  • The current rate of interest offered on SBI PPF accounts is 7.9% per annum with effect from 1st October, 2019.
  • Such interest is calculated on the minimum balance available in the investor’s PPF account between the 5th and the last day of the month. The interest so calculated is paid on the 31st March of every year that the investment is held.
  • The investment in a PPF account is eligible for many tax benefits. 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 investor can also file for nomination under the PPF scheme by submitting a Form E in this regard.
  • The bank allows nomination of one or more persons under the PPF scheme offered by the bank. The investor can also define the shares of each of such nominees.
  • The bank also provides the facility of loans and withdrawals against the PPF account of the investors. However, the limit or extent of such loans and withdrawals is determined based on the age of the account i.e. the duration for which it is held and the amount available in the account.
  • The bank also facilitates the transfer of the PPF account to any of the other branches of the bank or any other bank or any of the post offices across the country as well as transfer from any such avenues up on a written request from the investor. The bank does not charge any fees for such transfer service.

Withdrawal from PPF Account

The investor can ideally withdraw any amount from the PPF account only up on the maturity of the account i.e. after the completion of 15 years.

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

Partial withdrawals from the PPF account are permitted from the PPF account after the 7th year. The bank also 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.

The bank, however, allows early withdrawal from the PPF account under certain circumstances such as,

  • Treatment of life threatening diseases for parents, spouse or children (supporting documents like medical reports from a competent medical authority are required to be submitted).
  • Educational expenses of the account holder or minor account holder (supporting documents like proof of admission fees from a recognized university are required to be submitted).

Loans against SBI PPF account

The investor can also avail loans against their SBI PPF account. The key points to be noted with regards to such loans are,

  • The application form to be submitted by the investor for applying a loan against his/her PPF account is Form D.
  • A 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 investor can avail a maximum of 25% of the account balance available at the end of the 2nd year as a loan against the PPF account.
  • The investor can avail multiple loans against the PPF account subject to the prevailing regulations of the bank.
  • The prevailing interest rate on loans 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.

Premature closure of the SBI PPF account

The bank allows a premature closure of the PPF account held in his/her own name or on behalf of a minor or a person of unsound mind. Such premature closure is allowed only in certain cases. The account holder has to submit a Form-5 while applying for such premature closure.

Some of the circumstances under which the account holder is permitted to close the PPF account prematurely are highlighted below.

  • Treatment of life threatening disease in case of the account holder, his/her spouse or dependent children or parents (supporting documents and medical reports confirming such disease from treating medical authority need to be submitted along with the application).
  • For the higher education of the account holder, or dependent children (supporting documents and admission fees confirming such admission in a recognized institute of higher education in India or abroad have to be submitted with the application Form-5).
  • Since NRIs are not allowed to invest in PPF, the investor has to close the PPF account up on change in residency status of the account holder (copy of Passport and visa or Income tax return have to be submitted in this regard).

Contact details for SBI

The investors can contact the bank for any queries or issues relating to their PPF accounts by using any of the following contact details.

  • Toll free numbers – 1800 11 2211/ 1800 425 3800
  • Another contact number – 080 26599990
  • Text/SMS service – SMS UNHAPPY to 8008 20 20 20
  • Missed call banking – SBI QUICKd

Postal Address - Customer Service Department
    State Bank of India
    State Bank Bhavan, 16th Floor
    Madam Cama Road,
    Mumbai 400 021
    Tel: 022-22029456

FAQs: SBI PPF Account

1. What are the Form numbers to be submitted for various applications like nomination, change in nomination, contribution, etc.?

The list of forms that need to be submitted for various applications related to PPF accounts are,

FORM NUMBERPURPOSE/REASON

FORM A

Account opening

FORM B

Contribution to PPF (Repayment of Loan taken against PPF, Interest payment or payment of penalties or fees)

FORM C

Partial Withdrawal

FORM D

Loan

FORM E

Nomination 

FORM F

Change in nomination

FORM G

Claim for PPF account

FORM H

Extension of PPF account

FORM 5

Premature closure of PPF account

2. What is the toll free number of SBI?

The toll free numbers for SBI are 1800 11 2211/ 1800 425 3800.

3. Can the PPF account be extended beyond the tenure of the PPF?

The investors can extend the PPF accounts beyond maturity for one or more blocks of 5 years each up on the discretion of the investor.

4. Can a person transfer the PPF account held in a particular branch of the SBI to another branch of the bank?

A person is allowed to transfer the PPF account from one branch of SBI to another by submitting a written application for the same. Such transfer is effected without any service charges or fees applicable for the same.

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