FAQ on Public Provident Fund


1. How do I apply for the Public Provident Fund (PPF) Scheme, 1968 through Bank?
To apply for the PPF Provident Fund (PPF) scheme, 1968, you have to fill Form A and submit it at any Bank branch with relevant documents. The PPF account will be opened in one of the branches.. Please mention the name of branch where you wish your Public Provident Fund (PPF) account to be opened on Form A. Refer FAQ’s on documents required.

2. Can I maintain more than 1 Public Provident Fund (PPF) account under my name?
Only one PPF account can be maintained by an Individual, except an account that is opened on behalf of a minor.

3. What is the eligibility for investing under Public Provident Fund (PPF) Scheme, 1968?
A Public Provident Fund (PPF) account can be opened by resident Indian Individuals and individuals on behalf of minors.
Only one Public Provident Fund (PPF) account can be maintained by an Individual, except an account that is opened on behalf of a minor.
A Public Provident Fund (PPF) account can be opened either by the Mother or Father on behalf of their minor Son or Daughter; however the Mother and Father both cannot open Public Provident Fund (PPF) accounts on behalf of the same minor.
Grand-parents cannot open a Public Provident Fund (PPF) account on behalf of minor grand-child; however, in case of death of both the Father and Mother, Grand-parents can open a Public Provident Fund (PPF) account as guardians of the Grand-child.

4. What are the documents required for opening a Public Provident Fund (PPF) account with Bank?
PPF account opening form (Form A )
Nomination Form
Passport size photograph
Copy of PAN card/ form 60-61
ID proof and Residence proof as per Bank’s KYC norms

5. What is the minimum and maximum amount that can be invested under the Public Provident Fund (PPF) Scheme, 1968, in a financial year?
The minimum deposit amount is Rs. 500 per annum and the upper ceiling limit is Rs. 1,00,000 per annum.

6. What happens if I fail to deposit any amount in one or more Financial Years?
A penalty of Rs. 50 will be levied per year of default, if the customer doesn’t deposit the minimum deposit amount of Rs. 500 on the completion of the financial year.

7. When does a Public Provident Fund (PPF) account mature?
A Public Provident Fund (PPF) account gets matured after the completion of 15 years from the end of the year in which the account was opened.

8. Can I extend the tenure of a Public Provident Fund (PPF) investment beyond the Maturity Period?
A customer can extend the tenure of a Public Provident Fund (PPF) investment for a block period of 5 years beyond the maturity period by submitting Form H within one year from the date of maturity.

9. Can I terminate or closed the Public Provident Fund (PPF) account before before maturity?
No premature withdrawal is allowed for Public Provident Fund (PPF) accounts. Only in the case of the death of a customer, their nominee /legal heir can close the account by submitting the required documents as guided by the Ministry of Finance.
10. Can I withdraw funds from my Public Provident Fund (PPF) Account?
Customer can make one withdrawal every year, from the 7th financial year, of an amount that does not exceed 50% of the balance of the customer credit at the end of the fourth year immediately preceding the year of withdrawal or the amount at the end of the preceding year, whichever is lower.

10. Can I avail of Loan facility on my Public Provident Fund (PPF) investment?
Customers can avail of the loan facility between third financial year to sixth financial year ie. from third financial year upto end of fifth financial year.

11. What is the process for transferring my existing Public Provident Fund (PPF) account maintained with another bank/post office to Bank?
As per the PPF scheme of the Government, subscribers can transfer their PPF account from one authorised bank or Post office to another. In such a case, the PPF account will be considered as a continuing account. To enable customers to transfer their existing PPF accounts to Bank, the following process must be followed.
The customer approaches the bank or the Post office where his current PPF account is held and makes an application for transfer of PPF account to Bank’s branch.
Once the application is processed, the existing bank/Post office arrange to send the original documents such as a certified copy of the account, the account opening application, nomination form, specimen signature etc. to Bank branch address provided by the customer, along with a cheque/DD for the outstanding balance in the PPF account.

Yes, Bank offers you the convenience of viewing your Public Provident Fund (PPF) Account balance, transferring funds from linked savings account online and viewing your Public Provident Fund (PPF) account statement online in your Bank Net Banking Account.
Is there any provision for Standing Instructions for periodical credits (of a fixed amount) to PPF A/c by debit to Savings bank/ Current Account for PPF subscribers
Yes ,there is provision for giving Standing Instructions on SB or Current account for crediting PPF account . Standing Instructions can also be given online for crediting PPF account on periodical basis through Internet banking .ECS mandate is also available for subscription to PPF a/c by customers having account with other banks.
Source:sbi

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