Public Provident Fund (PPF) schemes are one of the most popular long-term investment methods in India. This scheme is backed by the Government of India and hence provides substantial returns along with tax benefits. State Bank of India has over 15000 branches in India, hence, an SBI PPF Account can be opened across all the branches of the bank across the nation. PPF returns are fully exempt from tax under Section 80C of the Income Tax Act. Depositors can save tax from by depositing a minimum of Rs.500 to a maximum Rs.1,50,000 in one financial year, and can also get facilities such as loan, withdrawal, and extension of account.
How to Open a PPF Account in SBI Online?
SBI PPF account online opening procedure is very simple and can be done online with the help of internet banking or mobile banking. In a nutshell, is an extremely easy task that can be completed seamlessly without any hassle given that you fulfil the below-mentioned prerequisites:
Requirements for opening a PPF account online in SBI
Your ‘Aadhaar’ number should be linked to your SBI savings account.
Your mobile number which is linked to your Aadhaar should be active to receive OTP.
Stepwise Procedure to Open an SBI PPF account Online
Here is a step-by-step guide to open SBI PPF account online:
1) Log on to your SBI banking online account with your username and password.
2) Navigate to the ‘Request and enquiries’ tab from the top right corner.
3) From the drop-down menu, click the ‘New PPF Accounts’ option.
4) You will be then redirected to the ‘New PPF Account’ page. You need to fill the details online. Existing customer details such as name, address, CIF number and PAN (Permanent Account Number) are displayed on this page.
5) Enter the bank account number and PAN number from which you would like to contribute to the PPF account and provide bank branch details. Once you have entered the branch code, proceed to the next field, the portal automatically displays the respective branch name.
6) Once you have filled and submitted the online PPF account opening form, you will be provided with a reference number and a link to download and print the online filled out form.
7)In the next step, you need to print the account opening form from the tab ‘Print PPF Online Application’, sign the applicable pages and visit your preferred SBI PPF account branch with self-attested copies of applicable KYC documents (PAN, Aadhaar, etc.) and a photograph within 30 days to complete the account opening process
8) Make sure you have all the original KYC documents at the time of branch visit for PPF account opening for verification purposes
Documents needed to open a PPF account in SBI
Below given is the list of documents required to open a PPF account at SBI
- Form A or the PPF account opening form
- A passport-size photograph
- Any address proof of the individual as per the KYC norms
- Nomination form
- Copy of your PAN (Permanent Account Number) must be submitted
Eligibility to Open a PPF Account in SBI
Opening a PPF account is easy but there are certain conditions for eligibility. The eligibility criteria for opening a PPF account is as follows:
- An individual should be an Indian resident to open a PPF account in his/her name. There is no maximum age limit to open a PPF Account in SBI
- Hindu Undivided Family (HUFs) cannot open a PPF account
- Non-resident Indians (NRIs) cannot open a PPF Account in their name
- PPF accounts can be opened in the name of the minor by a parent/guardian. In that case, only one such minor account is allowed per child
Ways of Depositing Money in SBI PPF Account?
There are two ways to deposit money in your SBI PPF account. One is the online transfer mode and another is to visit any SBI bank branch and make the deposit in offline mode.
State Bank of India allows customers to deposit cash in their PPF accounts via online banking. You need to just log in to your SBI online banking account with your credentials and make a fund transfer similar to how you do for any other bank. For account number, you are required to enter your PPF number to which cash transfer would be made. The payee name should be exactly the same as that mentioned in the PPF account.
Offline Cash Deposit
SBI PPF account deposit can be made via offline mode by visiting any of the SBI bank branches across the nation. The offline fund transfer to your PPF account can be made either by filling in a pay-slip at the bank or by depositing an account payee cheque.
Key Features of SBI Public Provident Fund Account
Some of the features and benefits of opening a Public Provident Fund Scheme with SBI are mentioned here:
- The minimum annual investment required to open an SBI PPF account active starts from Rs. 500
- The maximum investment allowed in the SBI PPF account is Rs. 1.5 lakhs annually
- PPF Deposits can be made in a lump sum amount or through a maximum of 12 instalments annually
- SBI PPF account deposits can be opened either via the online mode (mobile/internet banking) as well as through the offline mode(cheque/cash)
- A depositor having a PPF Account is allowed to provide the details of a family member as nominee for PPF account at the time of opening the account. The nominee details can be updated at any time in the future
SBI PPF Account – FAQs
Ques. Can we have more than one Public Provident Fund (PPF) account under a single name?
Ans. No, an individual can open only one PPF account under one name.
Ques. Is there any penalty charged if money is not deposited on time?
Ans. A penalty of Rs.50 per year will be charged as fine if Rs.500 (minimum amount) is not deposited by the customer by the end of the year.
Ques. Can an NRI open a new PPF account in SBI?
Ans. No, NRIs cannot open a new PPF account in SBI. However, in case a resident becomes NRI prior to the maturity of their PPF account, such an account can be held till maturity without the option of extension
Ques. What is the current SBI PPF Account interest rate?
Ans. The current interest rate provided by SBI PPF is 7.1%