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How To Open PPF Account Online?

IndianMoney.com Research Team | Posted On Monday, April 08,2019, 03:10 PM

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How To Open PPF Account Online?

 

 

The Public Provident Fund, PPF, is one of the few investment options that offer EEE status. EEE stands for exempt on investment, interest earned and maturity proceeds. PPF is a long term investment scheme and fits in the portfolio of all investors with different risk appetite.

PPF is backed by the Government of India; it is a very popular long term investment option due to its attractive interest rate and safety. The returns on PPF account are fully tax exempt as per Section 80C of the Income Tax Act. A PPF account may be opened at banks and post office.

There is an option of opening PPF account online and the process is simple and hassle free. Only banks have this option, while post offices don’t offer online PPF account opening option. Few banks allow complete account opening option while others allow the partial account opening facility.

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How To Open PPF Account Online?

How to Open PPF Account? 

You can open PPF account by logging in to netbanking facility. Post choosing the account from which the deposits would be made, subscribers can link personal details registered with bank and the PPF account. All details like address must be verified. 

Conditions To Open PPF Account Online

The conditions to open PPFs account online are mentioned below: 

  • The subscriber must have a savings bank account with the bank. 
  • Subscriber’s mobile banking and netbanking must be activated.
  • The savings bank account must be linked with Aadhaar number.
  • The Aadhaar number must be linked with the phone number. 

Eligibility To Open PPF Account

  • The applicant must be a resident Indian.
  • You are allowed to open only one PPF account.
  • NRIs who have opened PPF account when they were Resident Indians; can operate the PPF account for 15 years with no option of an extension.
  • Hindu Undivided Families, HUFs, cannot open PPF account after May 2005; all PPF accounts opened prior to this can be operated for a maximum of 15 years with no option of an extension.

Documents Required To Open A PPF Account Online

PPF accounts cannot be opened at all bank branches. A PPF account can be opened only at the authorized branches of SBI, ICICI Bank and Axis Bank.

Other banks authorized to operate PPF accounts are:

Punjab National Bank, Bank of India (BOI), HDFC Bank, Central Bank of India,  IDBI, Union Bank of India, Indian Overseas Bank and some others.

Below mentioned are the documents required to open PPF accounts:

  • PPF Account opening application form, available at bank branches and the India Post portal.

One of the following documents for ID proof:

  • Aadhaar Card
  • Voter ID card
  • PAN Card
  • Passport
  • Driving license

You must submit one of the following documents as address proof:

  • Telephone bill
  • Water bill
  • Electricity bill
  • Ration card
  • Aadhaar Card

The online application procedure varies across banks and few banks may need submission of additional documents. However, the basic documentation remains the same.

Apart from the above mentioned documents, you must also produce the following:

  • Two latest passport size photographs.
  • Pay-in slip at the bank branch to transfer the amount to the PPF account, or a cheque in favor of the PPF account.
  • For minors, date of birth certificate may also be required.

Note that copies of all documents must be self-attested, and originals must be produced at the time of opening the account for verification.

SEE ALSO: 12 Things To Know Before Opening PPF

How To Open PPF Account Online?

  • Login to your netbanking with the account credentials.
  • Under account, click on ‘Public Provident Fund’.
  • Enter all details in the relevant fields.
  • Add nominee, though this is not mandatory.
  • If you have not linked Aadhar with the bank account, then you must link to proceed.
  • PPF account would be opened in a day.

Verification Of Aadhaar Card 

The e – verification of Aadhaar commences the moment you submit details. An OTP would be sent to the registered mobile number and you must validate. The PPF account is opened on entering the OTP received.

Partial Process 

Partial application is created online. On submitting the application, print it. Self attest the printed application and submit at the branch by attaching the requisite documents.

Key Points To Remember:

  • A minimum Rs 500 must be deposited at the time of opening the account.
  • You must deposit at least Rs 500 in each financial year. 
  • Maximum deposit over a financial year is capped at Rs 1.5 Lakhs.
  • You must carry original documents to the bank at the time of opening the account to facilitate quick and hassle free verification.
  • Copies of all documents must be self attested.
  • PPF passbook would be issued to the subscriber at the time of opening the account and this is a must have document to claim tax deductions under Section 80C of the Income Tax Act.

Benefits Of Opening A PPF Account

  • High Interest Rate: The interest rate offered on PPF account is way more than that of a savings bank account.
  • Compounded Interest Rate: The interest on PPF accounts is compounded on annual basis. PPF interest is paid on 31st of March each year
  • Tax Deduction: Investments on PPF account enjoy tax deductions of up to Rs 1.5 Lakhs per year.
  • Safe Investment Option: Investing in PPF account is considered safe as it is backed by the government of India. It is a very good long-term investment option for 15 years.
  • Loans Against PPF Account: Most banks offer secured loans, issued against PPF account balances.
  • Low Tokens Of Deposit: Your deposit can be as low as Rs 500.
  • Extension Of PPF Account: PPF accounts can be extended in a block of 5 years on maturity.
  • Withdrawal: Subscribers are allowed to make partial withdrawals from the 7th year onwards.

SEE ALSO:  How To Invest PPF Online?

Conclusion

Opening PPF accounts with banks is way more convenient than opening with a post office. Most banks have online fund transfer option from the subscriber’s savings bank account to the PPF account.

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