PPF Account in SBI : How to open and Transact Online

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In today’s world of increasing work pressure and stiff deadlines, many Individuals are not able to plan their taxes well and make use of all the Income Tax Rebates offered to them. But with the introduction of online banking, all finances can now be managed from your finger tips and in this article we would be explaining you how to open a PPF Account in SBI.

Public Provident Fund Account is one of the most popular forms of not only saving your Taxes and earning a Tax-Free Interest as well on the same. In case, you are still unaware of the tax benefits a PPF Account has to offer, then refer the following articles:-

  1. PPF Account & its Benefits
  2. Save tax legally in 8 different ways through Tax Planning
  3. PPF vs Tax Saving Fixed Deposit: Which is a better Investment Option? 

A PPF Account can be opened in any Post-Office and selected branches of some banks like SBI, PNB, ICICI etc. As State Bank of India has the highest reach and is available even in remote villages, many Individuals tend to have a high preference for opening a PPF Account in SBI itself.

How to open a PPF Account in SBI

1. Choose the SBI Branch

While opting for opening a PPF Account in SBI, the first thing you should check is your nearest branch of State Bank of India which offers the facility of opening a PPF Account in SBI. A PPF Account cannot be opened in any branch and only selected branches of State Bank of India offer this facility. You can check the list of branches which offer this facility by using the SBI Branch Locator Tool

2. Account Opening Form & Documents Required

Once you’ve checked the list of SBI Branches that offer this facility, visit that Branch and ask them for an Account Opening Form. While opening a new PPF Account in SBI, you’ll have to furnish your Identity Proof, Proof of Residence & 2 Passport Size Photographs. The documents submitted should be self-attested and ensure that you carry the originals along with you.

A Scanned Copy of the SBI PPF Account Opening Form has been attached herewith for your ready reference

3. PPF Account Passbook

You would be issued a PPF Account Passbook once your PPF Account in SBI is opened. This Passbook will contain all details regarding the transactions done in your PPF Account.

sbi ppf passbook PPF Account in SBI : How to open and Transact Online

How to Transact Online in PPF Account in SBI

Now that your PPF Account in SBI has been opened, the next thing to do is to deposit money in your PPF Account in SBI. There is no fixed amount that has to be deposited in your PPF Account in SBI every month or every year. The Govt has only set the maximum and the minimum limits for investment in Public Provident Fund Account that can be deposited in an year. The Minimum limit is Rs. 500 and the Maximum Limit is Rs. 1,00,000 and these can be deposited anytime during the year and not necessarily at fixed intervals.

With the advent of Online Banking, the facility of making payments into your PPF Account in SBI can now also be done online without visiting the SBI Branch. There is no need for you to get up early morning and stand in long waiting lines. You can now deposit the amount in your PPF Account in SBI from the comfort of your home anytime during the day by making use of Internet Banking.

To transfer payments to your PPF Account in SBI you just need to logon to your Internet Banking Account and make a payment to your PPF Account in SBI in the same manner as you make an online payment to any other bank account.

Points to Note

While making the online payments, ensure the following

  1. Enter your SBI PPF Account Number as the Account Number to which you intent to make the payment.
  2. The Payee Name should be exactly the same as the Name of the PPF Account in SBI. (Please note: If your SBI Account is opened in the name of Kumar Ramesh Sharma, the payee name should also be Kumar Ramesh Sharma and not K.R. Sharma. Earlier such transactions were permissible but now RBI has enforced a strict rule that the Payee Name should be exactly same as the appearing in the bank records)

How to Transact Offline in SBI PPF Account 

Its not mandatory for you to make all deposits in SBI PPF Account through Online Banking. You can also personally go to your SBI Bank Branch with whom the PPF Account has been opened to deposit your PPF Contribution. You would only be required to fill up the pay-in slip for the contribution that you would like to make in your SBI PPF Account.
In case you are making your PPF Contribution through an account payee cheque, it would take some time for the cheque to clear. However, in case you are making your PPF Contribution, it would immediately be reflected in your account. So, it is advisable that in case you are making a cash contribution, do carry your SBI PPF Passbook which you can update on making the PPF Contribution.

Auto-debit or ECS Facility

You can also avail of auto-debit or ECS Facility for making your PPF Contribution. Amount would automatically be deducted at regular intervals from your Bank Account and deposited in your SBI PPF Account. You are only required to furnish a Auto-debit or ECS Form for the same stating the amount to be deducted and the intervals at which this should be done.

How to transfer PPF Account from Post Office to PPF Account in SBI

As per the PPF Account Scheme, a subscriber can transfer his PPF Account from any Post Office/ Authorised Bank to another Post Office/Authorised Bank and in case of transfer the PPF Account would be considered as a continuing account and not a fresh account and your balance would also be transferred.

If you are interested in transferring your PPF Account from Post Office to SBI, you have to submit an application for transferring the account along with Form SB-10b to the Head Postmaster (Download Form SB – 10b). You are also request to carry your identity proof as they may ask for the same.

The Head Postmaster will review your request and once your application is processed, the Head Post Master will send the original documents such as Certified Copy of the Account, the Account Opening Application Form, Nomination Form, Specimen Signature etc to the SBI Bank Branch where the PPF Account is to be opened. On all these documents, the Head Post Master will also make the remark of transfer of PPF Account to SBI on all relevant documents.

The Head Postmaster will also send the Cheque/Demand Draft of the balance in your PPF Account along with all the documents. On receipt of these forms at the SBI Branch, you would be required to submit fresh PPF Account Opening Form (Form A) along with a fresh set of KYC Documents.

After your application for PPF Account in SBI has been processed, a new PPF Account Passbook would be issued to you. This new passbook will not show previous entries of the post office and will only show entries of transactions entered through SBI Branch. So in case you need previous information for claiming tax deductions, it’s advisable to keep photocopies of the old passbook with you.

With the Facility of Online Transfers extended to Individuals having PPF Account in SBI, it is expected that more and more users would now be intrested in Investing in PPF Account considering that the Tax-Free Status that has been given to PPF Accounts. PPF Account can also be opened in ICICI Bank by submitting a simple application form online which would then be linked with your savings account.

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