Updated on 25 Jan 2021.
Public Provident Fund (PPF) is a long term saving scheme by the government of India.
This scheme offers a tax-exempted return on investment with the added interest of around 7.10% per annum.
In this article, we will take a look at the procedure involved in How to open a PPF account at banks and post office.
Only designated branches are authorized to open PPF accounts.
So be sure to check if your nearest branch allows account opening or not. You can do that by visiting the bank’s website or calling their customer care.
You can create a PPF account either online or offline.
However, only a few banks support complete paperless PPF account opening without needing any physical visit to bank branches.
Most of the banks allow for a semi-online process in which you can fill account opening form online and take a print out, and visit nearby branch along with required documents for KYC.
Requirements to Open a PPF Account Online
- You must have a savings account in the bank in which you are creating a PPF account.
- Net banking must be enabled in your account.
- Your mobile number must be attached to aadhar card and
- Aadhar card should be attached to the bank account for eKYC verification.
NOTE: You should have your Aadhar linked mobile number in working condition in order to complete the e-sign procedure via an OTP delivered to your number.
Documents Required to Open PPF Account
- PPF account opening form (available for download in bank website):
- Account opening forms differ from bank to bank with respect to filling online, taking a print out later or printing out a blank form and filling it offline.
- Either way documentation and submission of forms remain the same.
- 2 recent passport size photos
- ID proof copy with original for verification (Voter ID / PAN card / DL / Passport)
- Pay in slip which is available at the bank branch if you are opening an account at a branch.
- Address proof (electricity bill / telephone bill / ration card)
- Nomination form ( available for download in bank’s website)
- The savings account number you are using to open a PPF account.
- Age proof (in case of a minor).
Step by Step Procedure to Open PPF Account Online:
#1. Log in to your bank account you must have net banking enabled to open PPF account online.
Snapshots of PPF account opening procedure in case of SBI.
#2. Find the option for the PPF account opening.
Here are the navigation tabs for a few popular banks
- SBI – request inquiries> New PPF account
- HDFC – Accounts > PPF
- ICICI – Accounts > PPF
#3. After navigating to a new PPF account section on the website, you will be able to see the account information along with personal details and pan number.
#4. Here you need to select the savings account with which you are funding the PPF account.
In case the applicant is minor, you need to tick the checkbox and fill in the name and date of birth.
You also need to enter the bank branch code.
#5. Your personal details like name, address need to be verified.
If your aadhar is already linked with your bank account, you will get an option – “generate OTP”.
This is required for e-sign and once you enter the OTP, your PPF account is instantly created.
Otherwise, after clicking on submit, you will be prompted with a download application option, you need to take a print out, attach a photo and get it to the bank branch along with KYC documents within 30 days.
#6. Your PPF account number is displayed on the screen. You can avail the transaction statements and annual statements via net banking.
For physical passbook, you need to visit your bank branch to get one.
One general doubt in terminology is with banks that offer online fund transfer and online account opening.
The difference is while banks that allow online fund transfer, allow for you to transfer amount from savings to PPF account online, they may not necessarily have the facility to open an account online.
On the other hand, banks that allow online account opening offer online fund transfer also.
List of Banks that Allow Online Fund Transfer Facility
- State Bank of India or SBI
- ICICI Bank
- HDFC Bank
- Canara Bank
- Axis Bank
- Central Bank of India
- Allahabad Bank
- Bank of India
- Bank of India(BOI)
Step by Step Procedure to Open PPF Account Offline
#1. You can get ‘Form-A’ which is issued at bank branches or at post offices.
#2. Fill up the form and submit it to the branch with required KYC documents.
#3. After the bank reviews the documents, you will be given a PPF passbook to refer to previous transactions.
#4. You can open an account with an initial payment of Rs. 100. But a minimum of 500 rs must be deposited in a financial year.
- Minimum deposit amount: Rs 500
- Maximum deposit amount: Rs. 1,50,000
- You need to deposit each year for 15 years’ tenure.
- You can make up to 12 deposits in a financial year.
#5. You can deposit the amount by filling in a deposit slip along with cash or check at the bank.
Customer copies of deposit slips are required to claim tax exemption.
List of Banks Offering PPF Account Opening Facility
#1. SBI (and it’s subsidiary banks)
#2. ICICI Bank
#3. HDFC Bank
#4.Oriental Bank of Commerce (OBC)
#5. Canara Bank
#6. Corporation Bank
#7. Punjab National Bank (PNB)
#8. Andhra Bank
#9. United Bank of India
#10. Dena Bank
#11. Indian Bank
#12. Axis Bank
#13. Central Bank of India
#14. Bank of India (BOI)
#15. Syndicate Bank
#16. UCO Bank
#17. Union Bank of India
#18. Bank of Maharashtra
#19. Vijaya Bank
#20. Allahabad Bank
#21. Indian Overseas Bank (IOB)
#22. IDBI bank
#23. Bank of Baroda
Here is the snapshot of the ‘Form-A’ which is used for opening the PPF account.
Below is The List of Various Forms Used in PPF Account
|Form A||For opening a PPF account|
|Form B||For making deposits in the PPF account and repaying the loans against the PPF account|
|Form C||Partial withdrawals from PPF account|
|Form D||Apply for Loan|
|Form E||Adding a nominee|
|Form F||Changing the nomination for the PPF account|
|Form G||For the claiming of funds in a PPF account by a nominee or the legal heir|
|Form H||For extending the maturity of the PPF account (1 or 5 years)|
Account opening in case of minors
- The PPF account can be opened by parents on behalf of his/her child.
- Both parents cannot open individual accounts on behalf of the same child.
- Grandparents are not permitted to open an account when a child’s parents are alive.
- Age proof is required for account opening.
Case 2: How to Open PPF Account in a Post Office
- You can avail ‘Form-A’ from your nearest post office. It can also be availed online.
- Fill up the form and submit it with passport-sized photos attached to KYC documents.
- The initial amount to open PPF account in the post office is Rs 500.
- Maximum of Rs. 70,000 can be deposited initially. The maximum deposit in a financial year is 1,50,000.
- After the verification of all the documents is done, you will receive the passbook for PPF account.
- Which contains all the details like PPF account number, branch name, and name of the account holder.
- This is necessary to claim tax exemption for money invested in PPF account.
A PPF account can be a great way to save money in the long term because of the flexibility. It also gives you benefit of tax savings over investment because the PPF returns are completely free of tax.
Along with that, PPF offers partial money withdrawals, loan on PPF account(between 3rd and 5th year) and above all long term savings.
What are your thoughts on PPF? Tell me in the comments.