Opening a PPF Account With SBI

One of the preferred retirement savings funds by the working class is the Public Provident Fund (PPF). The long-term investment horizon and the magic of compounding may be the key reasons for its popularity along with the income tax exemption available on it.

You might be wondering how to open a PPF account in one of your trusted banks, i.e. State Bank of India (SBI). In this article, we have provided some useful information on the Public Provident Fund (PPF) account and the stepwise procedure to open the account with SBI.

Public Provident Fund

Public Provident Fund (PPF) is a popular long-term investment option scheme. It is backed by the Government of India and also offers attractive interest rates and returns with safety. These returns are fully exempt from Tax under Section 80C of the Income Tax Act. 

Investors can save tax from up to a maximum Rs.1,50,000 in one financial year. Customers can get facilities, such as loans, partial withdrawal, and extension of account. PPF is a good alternative for self-employed people or for those who are from unorganised sectors since EPF/GPF is not available for them.

Product Features of PPF

• Attractive interest rate of 7.1% p.a. that is fully exempt from income tax under Section 80C of the Income Tax Act.
• Good long-term investment tenure of 15 years.
• Deposit amount can be as low as Rs.500  and a maximum Rs.1,50,000 per financial year.
• Deposits can be done in up to 12 transactions for a financial year.
• Loan can be availed between the third to sixth financial year.
• Partial withdrawal facility is available from the seventh financial year onwards.
• Account can be extended in a block period of 5 years after maturity.

Eligibility to open PPF Account in SBI

• An Indian citizen can open a PPF account. 
• Parents can open a PPF account on behalf of minors.
• Hindu Undivided Family (HUF) and Non-Resident Indians (NRI) cannot open a PPF account.
• An individual can open only one PPF account unless the second account is in the name of a minor. 

Opening a PPF Account in SBI

Usually, a PPF account can be easily opened in a designated post office or a bank branch. If you are an SBI customer, you may want to open a PPF account with SBI so you can manage all accounts with one bank. 

SBI  has announced the launch of a digital service that enables customers to open a Public Provident Fund (PPF) account instantly in a completely online and paperless manner at any time, i.e. 24/7.

Open a PPF account conveniently anytime, anywhere, using the bank’s digital channels, Internet and Mobile Banking.  As per SBI’s claim, it is one of the first banks in India to offer instant Public Provident Fund (PPF) account facility.

Prerequisites to Open a PPF Account Online with SBI

• You should hold a savings bank account with SBI.
• You should have Net Banking/Mobile Banking access
• Your Aadhaar number should be linked to your account
• Your mobile number which is linked to your Aadhaar should be active to receive one time password (OTP). This is necessary to e-sign/e-authorise the opening of a PPF account instantly.

Process to Open PPF Account

You can open SBI PPF account either online by logging into SBI net banking or mobile banking or offline by visiting the bank.

How to open a PPF Account Online with SBI?

Step 1. Visit SBI portal and login with your credentials.

Step 2: Click on ‘Deposits & Investment’ and click the ‘Public Provident Fund (PPF)’ option.

Step 3: Click the ‘PPF Account Opening (Without Visiting Branch)’ option.

Step 4: Read the general instruction, accept the terms and click the ‘Proceed’ button

Step 5: Select the account and click the ‘Proceed’ button.

Step 6: Your account details will be pre-filled. Enter the deposit amount, nominee details, select the declarations and click the ‘Submit; button.

Step 7: Pay the initial deposit amount through any online mode.

Step 8: The PPF account will be created and the PPF account number will be displayed. PPF account statements are available on internet banking.

Step 9: Visit the branch with the PPF receipt, KYC documents, and a photograph within 30 days to complete the account opening process.

How to open a PPF Account Offline with SBI?

Step 1: Visit the SBI branch authorised to open PPF accounts.

Step 2: Get the PPF account opening form (Form A).

Step 3: Fill and submit Form A along with the required KYC documents. 

Step 4: Deposit the initial deposit amount in cash, Demand Draft (DD) or cheque at the time of account opening. 

Step 5: The branch officers will open the PPF account and give the PPF account number.

Documents Required to Open PPF Account with SBI

• PPF account opening form
• Passport size photo
• Address proof
• Nomination form
• PAN card

PPF Calculator

Find out how much returns you can expect on investing in a PPF account through our easy-to-use PPF caclulator.

How to Deposit Contributions in a PPF Account with SBI?

An individual can submit the PPF deposit money through online or offline mode.

Online Deposit

SBI allows customers to deposit cash in their PPF accounts through online banking. They can log in to their SBI online banking account and make a fund transfer by entering the PPF number to which cash transfer should be made. The payee name should be the same as the one mentioned in the PPF account. Online transfers to PPF accounts can also be made through ECS, NEFT, or standing instruction.

Offline Deposit

Individuals can deposit in PPF accounts offline by visiting the SBI bank branch. The deposits can be made through cash, or by filling in a demand draft or by depositing an account payee cheque.

Important Points to Note When Opening a PPF Account

• As per the Indian law, an individual is allowed to open only one PPF account.
• Minimum deposit is Rs.500 as initial deposit amount.
• NRIs can not open a PPF account.
• You can visit the nearest SBI Bank branch and give the request for nomination updating/change whenever required.
• Customers need to visit the branch to get the passbook for the PPF account opened online.

Frequently Asked Questions

How to close a PPF account opened in SBI?

You must submit Form C at the SBI branch where the account exists to close your PPF account. Provide all details, including your PPF account number, the reason for the closure and details of the bank where you want the amount to be credited in the Form. After thorough verification, SBI will process your account closure request. The entire amount in your PPF account will be sent to the account you have mentioned on Form C. 

However, as per the rules governing PPF accounts, you can withdraw your entire PPF account balance only after the account completes its tenure of 15 years. Thus, you can close your PPF account only upon completion of the 15-year term. However, premature withdrawal of up to 50% of the PPF account balance is allowed after completing 6 years. This is permitted under special circumstances only.

Can I transfer a PPF account from SBI to another bank?

Yes, you can transfer your PPF account from SBI to any other bank or post office. Here is the procedure:

• Visit the SBI bank branch where your PPF account is opened.
• Request for the application form to transfer the PPF account and fill it up with the relevant details.
• The branch representative will process your application and forward it along with the certified copy of the account, nomination form, account opening application, specimen signature, and the cheque/DD for the outstanding balance of the PPF account to the new bank branch.
• Once the new branch receives your application and supporting documents, you have to submit a new PPF account opening application along with the old PPF account’s passbook. You may change the nominee at this point.
• Once this application is processed, your PPF account is successfully transferred to the new bank branch.

How to get the PPF account passbook from SBI?

Below is the process to view the PPF account passbook online:

• Login to your SBI net banking account by entering your credentials.
• Click the ‘Deposit & Investment’ and select the ‘Public Provident Fund (PPF)’ option.
• Select ‘PPF Account Statement’ option.
• You can view and download your SBI PPF account passbook.

Below is the process to get the PPF account passbook offline:

• Go to the SBI branch where you have opened your PPF account
• Fill the form to issue PPF passbook and submit it to the bank officials.
• Once you get your PPF passbook, you can get it updated and check all the transactions.

How to check PPF account balance online in SBI?

You can check the account balance online or offline. 

• Log into your SBI bank account online using SBI net banking or mobile banking credentials. Click ‘Deposit & Investment’ option, select the ‘Public Provident Fund (PPF)’ option and select ‘PPF Account Statement’ option. You can view your PPF account balance online.
• To check your PPF account balance offline, visit the SBI bank branch where you have PPF account and get your SBI PPF account passbook updated. 

How to withdraw money from a PPF account before maturity?

• Check if you are eligible for premature withdrawal.
• If you are eligible, get Form C from SBI and fill it up with relevant details.
• If the account is in the name of a minor, you will have to provide an additional declaration stating the money you are withdrawing is for the sake of the minor and that the minor is alive.
• Submit the form and any supporting documents to the SBI bank branch.
• If all the information and documents you have provided are satisfactory, the bank will process it and release the payment.

How to activate an inactive PPF account?

In order to reactivate an inactive PPF account, you can follow the steps below:

Step 1: Submit a written letter requesting to reactivate PPF account to the SBI bank branch where you have opened your PPF account.

Step 2: Pay a minimum amount of Rs.500 for each year you have not made any contributions along with the penalty of Rs.50 per inactive year.

Step 3: The bank will process your request and reactivate the PPF account.

What happens when I do not deposit in an SBI PPF account for one year?

When you do not make the minimum contributions/deposits for one year to your PPF account, it will become inoperative. You can activate your account only after making the minimum contribution along with the penalty.

How to withdraw money from a PPF account?

Step 1: Fill in Form C with relevant details. You can download this from your bank or Post Office website or get the form at the branch.

Step 2: Submit the form to the bank or Post Office branch where your PPF account is held. 

How to link an SBI PPF account to an SBI account online?

There is no need to link a PPF account held with SBI to an SBI savings account. At the time of opening the PPF account, either online or offline, you will have provided your existing savings account number held with the bank. This means, your new PPF account is created under the existing customer ID. By default, your PPF account will be linked to your savings account. Therefore, you can use the same login credentials for internet banking and access both your savings account and PPF account details under a single platform. 

How to know your PPF account number?

When you open a PPF account offline, the bank or Post Office will provide you with a passbook. The passbook contains all the necessary information about the PPF account, such as the PPF account number, bank/PO branch details, account balance, transactions made in the account, and others. You can get the passbook updated regularly to access the latest data.

On the other hand, you can log into your account on the internet banking portal. On the home page, choose the PPF account to see the account details, such as the account number, account balance, recent transactions, and others. 

How to open a PPF account in a Post Office?

Step 1: Get an application form from your nearest post office or online.

Step 2: Fill up the form and submit it with the required KYC documents and passport size photograph.

Step 3: Make the initial deposit required to open a post office PPF account. The amount can range from Rs.500 up to Rs.1.5 lakh per financial year.

Step 4: Once your application is processed, a passbook will be given to you for the PPF account opened.

How many years can a PPF account be extended?

A PPF account can be extended in the blocks of five years any number of times upon the maturity of the account after 15 years from the date of opening the account.

Which bank is the best for a PPF account?

PPF accounts are offered by the Government of India and are not specific to a bank. Also, all banks provide the same set of features and benefits when you open a PPF account. The interest rate is set by the government and it remains the same wherever the PPF account is held. Therefore, there is no best bank that offers a PPF account. 

When to deposit money in a PPF account?

There is no specific due date as to when you should deposit money in a PPF account. However, it is beneficial for you to deposit money between 1 April and 5 April of a financial year. If it is not possible for you to make the full year’s deposit at the beginning of the year, you can make monthly deposits within the 5th of the month to earn maximum benefits.

How many times can a PPF account be extended?

A PPF account can be extended any number of times without any restrictions. 

How many PPF accounts can be opened?

An individual can open only one PPF account across the country either in a bank or Post Office. 

How to convert a minor PPF account to a major?

When a minor PPF account holder becomes a major or turns 18 years old, you can submit a revised application form with necessary documents to change the status of the account from minor to major. The guardian can submit the application along with the account holder’s signature on the application form as an attestation.

What is the minimum lock-in period for a PPF account?

The minimum lock-in period for a PPF account is 15 years, the actual tenure of the PPF account. 

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