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Introduction

UCO Bank is one of the major public sector banks in India having its headquarters in BTM Sarani, Kolkata. It has over 3000 service centers across the country and two major overseas offices in Singapore and Hong Kong. The bank offers a lot of investment options for the customers to choose from and build their investment fund as well as prepare for any unforeseen expenses.

Public Provident Fund (PPF) is the government savings scheme that was introduced in the year 1968 and is regulated by the National Savings Institute. The scheme has an array of benefits and attractive features that make it a very good investment option for all age groups across the country.

Eligibility Criteria for PPF account

All the resident citizens of the country are eligible applicants for the investment in PPF account. The other details pertaining to the eligibility under PPF accounts are provided below.

  • Age is not a restriction in opening a PPF account.
  • PAN card details are to be mandatorily provided for opening a PPF account.
  • HUFs and NRIs are not allowed to open a PPF account.
  • If a person becomes an NRI post opening an account under the PPF scheme, such person can close the account prematurely i.e. before the completion of the term of 15 years by submitting the copy of his/her passport and visa or a copy of the Income Tax Return of such person (applicable only to those accounts that are opened after 12th December 2019). Also, the rate of interest applicable on such accounts is one percent lower than the normal applicable rate of interest on other PPF accounts.
  • Parents (Grandparents or guardians in absence of parents) can also invest under PPF on behalf of minors or persons of unsound mind.
  • Parents can open only one PPF account in the name of a minor child. Investment in the minor account will be clubbed with the investment of such parents in order to determine the maximum limit of investment by the parent.
  • The scheme also does not permit joint holding of PPF accounts.
  • Individuals can also not transfer their PPF account in anyone’s name.

Documents required for opening a PPF account

The documents required to be submitted by an individual to open a PPF account with UCO bank are,

  • Form A - Completed and signed
  • Form B - Duly filled Pay-in Slip (Initial Contribution)
  • Form E - Nomination duly filled and signed
  • Identity Proof of the investor (Aadhaar Card, PAN Card, Voter’s ID, etc.)
  • Address Proof of the investor (Aadhaar Card, Electricity Bill, Water bill, Gas bill, etc.)
  • Recent passport size photographs
  • Birth certificates of the minor or senior citizens (in case investment is made on behalf of the minor)

General Details required in Account opening Form

The general requirements of the application Form A for opening a PPF account are mentioned here.

  • Name of the applicant
  • Address of the applicant
  • Name of the minor and relationship with the minor (if account opened on behalf of a minor)
  • PAN number of the applicant
  • Initial contribution via Pay-in slip – Form B
  • Nomination Form E

Features and benefits of UCO Bank PPF Account

  • PPF accounts with UCO Bank can be opened in all the branches of the bank that are eligible for opening a PPF account.
  • Contribution to be made each year is a minimum of Rs. 500 and maximum contribution Rs. 1,50,000.
  • Contributions can be made in a single lump sum payment or in monthly installments per year.
  • A person cannot contribute more than twice in any month towards PPF account and not more than 12 installments per year.
  • Contributions made beyond Rs. 1,50,000 in any year are not eligible for any interest or tax benefits.
  • The tenure of the PPF account is 15 years which can be extended for multiple blocks of 5 years.
  • There is no restriction on the number of times that such extension can be availed and can be availed within 1 year from the date of maturity.
  • The current rate of interest is 7.9% per annum and is determined by the government on quarterly basis.
  • 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 and thereby compounded annually.
  • Interest on PPF investment is eligible for tax exemption and the investment itself 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 and such nomination is allowed up to a maximum of 4 persons under the PPF scheme offered by the bank. The investor can also define the shares of each of such nominees.
  • The scheme also allows a change in the nomination as well as change in percentage of share of the nominees.
  • In the event of death of the investor, the bank can repay the amount in the PPF account to his/her nominee or the legal heir before the PPF account reaches maturity after settling any outstanding loan amount.
  • Loans can be availed after the completion of 3rd year but not after the completion of 5th year.
  • Withdrawals from the account are allowed only once in any year after the completion of 5 years from the date of opening the account and the underlying condition for the same is that the PPF account cannot be closed in such case.
  • The investor can withdraw a maximum up to 50% of the balance that is available in the PPF account at the end of the 4th year immediately before the year of withdrawal or at the end of the preceding year whichever is lower.
  • PPF accounts can be transferred to any other branches of the bank or any other bank or post office across the country and vice versa.
  • A person can hold the PPF account even beyond maturity i.e. after the completion of the tenure of 15 years.
  • Such an account will be eligible to avail interest at the prevailing rate of interest.

Withdrawal from PPF Account

The scheme allows an investor to withdraw the entire amount in the PPF account along with the interest accrued over the years only after the completion of the term of 15 years.

The withdrawal at such time is without any tax implications. Such withdrawal is eligible for tax exemption under the provisions of the Income Tax Act, 1961.

However, the investor is allowed partial withdrawals from the PPF account after the 7th year restricted to one withdrawal per year thereafter. The amount of such premature withdrawals from the PPF account is limited 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 allowed under certain special situations based on a written request from the investor. Some of the examples of these special situations are,

  • Expenses for 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).
  • Expenses for education of the account holder or minor account holder (supporting documents like proof of admission fees from a recognized university are required to be submitted).

UCO Bank PPF calculator

UCO bank provides the investor the benefit of estimating the value of his/her investment at the time of maturity with its PPF calculator. This helps the investor in planning for his/her future expenses or to know the correct amount of investment to be made in order to build the targeted fund.

The investor has to input the following values or details in the PPF calculator available at the bank’s website in order to get the details of the maturity value.

  • Investment amount
  • Tenure of the account 
  • Prevailing rate of interest.

Modes of Deposit towards PPF

Investor can invest in PPF account through any of the following ways

  • Direct debit from the existing UCO Bank 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.

Dormant or Inactive PPF account

An account becomes dormant or inactive in the absence of a continuous deposit or contribution to the PPF account.

These dormant accounts have limited benefits as compared to the usual PPF accounts. Examples of these limited benefits are no loan facility, limited or zero withdrawals, etc. These accounts are still eligible to earn interest at the prevailing rates as any other PPF account.

An investor’s dormant account can be revived to its fully functional state in the following manner,

  • The investor shall submit a written request at the issuing post office or branch of the bank.
  • He has to pay the minimum yearly deposit amount of Rs.500 for each year that the account has remained inactive along with a fine of Rs.50 for each year vide Form B.
  • Then the investor has to visit the branch/post office of the PPF account to complete the verification process.

UCO Bank Customer care for PPF account

Toll free number – 1800 274 0123

Email id – 

  • For customer grievances – hopgr[dot]calcutta[at]ucobank[dot]co[dot]in
  • For customer feedbacks and suggestions -  customercare[dot]calcutta[at]ucobank[dot]co[dot]in
  • For e-banking queries – hoe_banking[dot]calcutta[at]ucobank[dot]co[dot]in

Postal address – Corporate head office

UCO Bank Head Office,
        10, B T M Sarani, Kolkata - 700 001
        West Bengal
      India

FAQs

1. What is the initial contribution required to open a PPF account?

The minimum initial contribution required to open a PPF account is Rs. 500.

2. Can a dormant PPF account be still eligible for interest?

As per the rules of the scheme, dormant PPF accounts are also eligible to earn interest at the prevailing rates.

3. Can a person who is not a resident of the country open a PPF account?

No. A person who is not of Indian origin cannot open a PPF account.

4. Are all the branches of the bank eligible for opening a PPF account?

Yes. All the branches of UCO bank are eligible to open a PPF account.

5. Can a person transfer his/her PPF account from a post office to the bank?

The PPF scheme allows a person to easily transfer his/her PPF account from a post office to any of the branches of UCO bank.

Uco Bank Ppf Account - Customer Reviews

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21 Jun 2020

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