Opening PPF account in SBI is one day process. SBI Bank offers facility to open PPF account online through SBI Internet Banking Service instantly. However, SBI’s New PPF account facility enables existing SBI customers as well as new customers to prepare their PPF application online. In this article we will tell you step by step how to open PPF account easily within one day in SBI bank.
Basic features of PPF or Public Provident Fund
Before proceeding, let us recap features of Public Provident Fund or PPF. These are basic features of PPF or Public Provident Fund. Read How to combine multiple EPF accounts with UAN?
- PPF is 15 years scheme. Thus, as per normal rules, PPF account gets matured after 15 years completion from end of year in which account was opened. However, on maturity you can extend it further any number of times for block of 5 years as long as you wish.
- Interest rate will be annual compounding but changes on quarterly basis as per Government notification.
- Minimum yearly deposit of Rs. 500 is required to open and maintain PPF account.
- Maximum deposit of Rs. 1, 50,000 can be made in PPF account in any given financial year. As per PPF rules, you are not allowed to invest more than Rs. 1.5 lac in your own PPF account or any other PPF account where you are guardian.
- Thus, if you have two children and you have also opened PPF account in their names, you need to deposit maximum of Rs 1.5 lac in all three accounts together. You can deposit Rs 1.5 lac in each account but in future you will not get any interest on excess amount.
- The amount invested in PPF will be eligible for deduction under Sec 80C and maturity interest is tax exempt.
- You are allowed to have only one account in your name. You can have an account in name of minor child of whom you are parent or guardian. However, you will be child’s account, you will simply be guardian. But you can never have joint account.
- You are not allowed to an account for minor. If you open an account with minor, it is considered to be your PPF account. But combined investment limit of your and such minor account must not be more than Rs. 1, 50,000.
- You cannot invest more than 12 installments in year and entire balance can be withdrawn on maturity.
- NRIs are not allowed to open PPF account. If they opened already, then they have to close account immediately after residential status changes. Otherwise, they will earn only savings account interest from date of your NRI status change to date of closure of account.
How to Open PPF Account Online in SBI Bank?
Let us now explain steps to open PPF account online with SBI bank.
- Login to SBI Banking Internet Banking Portal onlinesbi.com
- Next, find New PPF Account option on life side under E-services section and click on it.
- You will find link New PPF Account. For existing customers, details including PAN are displayed on this page. Even you will get an option to open new PPF account in name of minor.
- Then enter branch code (5 digit code) in specified field. You can search branch code through Branch Locator tool.
- After this, you need to enter nominee details with amount for each nominee and the click on submit.
- After this, portal will issue reference number
- Then print account opening form from tab ‘Print PPF Online Application’ and visit branch with KYC documents and photograph within 30 days. After your submission, SBI adds this to its portal. Also read Simple steps to Link SBI bank Account with Aadhaar.
How to link your online SBI Account to SBI PPF account for Online Transaction
If you have an online SBI account, you can add PPF account as third party account for transferring money directly. As mentioned above, PPF account can be in any SBI branch. There are no processing charges for doing this transfer.
When you do this online for first time, then go to bank and update your PPF passbook and check if transaction has occurred correctly. This has to be done because you cannot look amount in PPF account in SBI. This is major drawback of SBI-PPF accounts.
Document require to Open PPF Account
- PPF account opening form (Form A)
- Nomination Form (Form E)
- 2 Passport size photograph
- Photocopy of PAN Card
- Photocopy of Address proof
- PPF deposit slip (To pay initial amount with which you are opening account)
So this is how existing SBI customers can open PPF (public Provident Fund) online in SBI through net banking. If you are new customer then you need to fill-up separate PPF account opening form and submit it to branch. Also check How to correct name, gender, date of birth in EPF Online?