FAQ Public Provident Fund - Faq's

It is a Government of India Scheme. PPF account is opened under the Public Provident Fund Scheme,1968. PPF Scheme,1968 introduced vide GSR 1136(E), dated 15.06.1968 and was rescinded vide GSR 913 (E) dated 12.12.2019. PPF Scheme 2019 was reintroduced vide GSR 915 (E) dated 12.12.2019. It is savings- cum -tax saver scheme for Indian residents only.

Any resident individual can open account for himself/herself and on behalf of a Minor or a person of unsound mind as a Guardian.

• PPF account opening form (Form 1)
• Nomination Form
• Passport size photograph
• Copy of PAN Card/ Form 60-61
• Copy of Aadhaar / Aadhaar Enrolment Number

Yes, PPF account can be opened with Aadhaar as primary identity. If Aadhaar number has not been assigned to the customer, proof of Aadhaar enrolment number can be provided to open the account. However, customer has to submit Aadhaar within six months from account opening date for linking. If Aadhaar has not been submitted within six months from account opening date, account shall cease to be operational till the time the customer submits the Aadhaar.

Yes, PPF account can be opened with PAN/Form-60. If customer has not submitted PAN at the time of account opening, PAN has to be submitted within a period of two months from the date of happening of any of the following events, whichever is earliest,

• The balance at any point of time in the account exceeds Rupees fifty thousand, or
• The aggregate of all credits in the account in any financial year exceeds Rupees one lakh, or
• The aggregate of all withdrawals and transfers in a month from the account exceed Rupees Ten thousand. In the event of failure of submitting PAN within the specified period of 2 months, the account shall cease to be operational till the time the customer submits the PAN.

There is no maximum limit of age for a person to open a PPF account. A person of any age can open an account.

Yes, individuals as Parents/ Guardians on behalf of a person with unsound mind can open PPF account.

For opening such an account, Guardian needs to submit a certificate from Superintendent of Mental Hospital where a person of unsound mind is confined or treated, along with PPF account opening form (Form 1), Nomination Form, Passport size photograph, Copy of PAN card/ Form 60-61, and Aadhaar as Identity proof and Residence proof as per Bank's KYC norms.

No, only one PPF account can be maintained by an Individual, except an account that is opened on behalf of a Minor or a person with unsound mind.

Yes, in case of illiterate depositor, the thumb impression of an illiterate depositor, at the time of making nomination or altering the nomination, shall be attested by two witnesses. However, no witness shall be required in case of a literate depositor for the purpose.

A resident who subsequently becomes NRI during the currency of maturity period prescribed under the Public Provident Fund Scheme, may continue to subscribe to the fund till its maturity on a non-repatriation basis. However, these accounts cannot be extended further.

Minimum Investment is Rs.500/- in every financial year.

Maximum investment is Rs.1,50,000/- in every Financial Year.

Yes, a minimum deposit of Rs 500 is required to be deposited in PPF Account every year. If this is not done, the PPF account will become inoperative.

There is no restriction on number of instalments. Money can be deposited in PPF account either in lump sum or in instalments which need not be of the same amount. The deposits must be made in multiples of Rs.50/-.

A Public Provident Fund (PPF) account can be opened by resident Indian Individuals and individuals on behalf of Minors or a person of unsound mind. 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 person of unsound mind. 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.

To apply for the Public Provident Fund (PPF) Scheme, customer needs to fill Form 1 and submit it at any SBI Branch with relevant documents. The provision for online opening of PPF account is also available to customers of the Bank having INB facility. The PPF account can be opened in any of the Branches. Customers need to fill all necessary fields mentioned in Form 1.

Yes, all Branches of SBI are authorised to open PPF accounts.

For any given month, investments made on or before the 5th of the month will be considered for interest calculation for that month. Interest is calculated on the lower of the balance held on the 5th of a month to the end of the month.

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.

Yes, Customer can make one withdrawal, each year after completion of five financial years (i.e., from the beginning of 6th FY). The amount of withdrawal cannot exceed:

• 50% of the balance at the end of the 4th immediately preceding year, or
• 50% of the balance at the end of the immediately preceding year, whichever is lower. Further, the amount of withdrawal gets reduced by the outstanding loan amount, if any.

The Minor who has become a Major will have to take over the operation of the PPF account by registering his/her signature (attested by the Guardian).

No, joint account cannot be opened under PPF.

Yes, loan can be granted at any time after the expiry of 1 year from the end of the year in which the initial subscription was made, but before expiry of 5 years from the end of the year in which the initial subscription was made, not exceeding 25 % of amount that stood to his credit at the end of the second year immediately preceding the year in which the loan is applied for.

• The principal amount of a loan is repayable before the expiry of thirty-six months from the first day of the month following the month in which the loan was sanctioned.
• The repayment may be made either in one lump sum or in two or more monthly instalments within the prescribed period of thirty-six months. The repayment will be credited to the subscriber’s account.
• After the principal of the loan is fully repaid, the interest shall be repayable in not more than two monthly instalments at the rate of one percent per annum of the principal for the period of commencing from the first day of the month following the month in which the loan is drawn up to the last day of the month in which the last instalment of the loan is repaid.

If the loan is not repaid, or is repaid only in part, within a period of thirty-six months, interest on the amount of loan outstanding shall be charged at six percent per annum instead of at one percent per annum with effect from the first day of the month following the month in which the loan was obtained, to the last day of the month in which the loan is finally repaid.

PPF can be closed on any of the following grounds:

• If the amount is required for the treatment of serious ailments or life-threatening disease of the account holder, spouse or dependent children or parents.
• If the amount is required for higher education of the account holder or the Minor account holder (on production of documents in confirmation of admission) in a recognized institute of higher education in India or abroad.
• If the customer changes residential status.
• A PPF account cannot be closed under any circumstances before the expiry of 5 years from the end of the year in which the account was opened.

Facility of partial withdrawal under the Scheme is available in the Extended PPF Accounts, subject to the condition that the total withdrawal during the block period of 5 years shall not exceed 60% of the balance at credit at the commencement of the block period. Such withdrawal may be made either in a single or in yearly instalments.

Yes, the account holder may retain his account after maturity without making any further deposits for any period and the balance in the account will continue to earn interest at the rate applicable to the Scheme. Further the account holder may make one withdrawal every year for any amount within the balance available in the account.

The account holder on the expiry of fifteen years from the end of the financial year in which the account was opened, may extend his account, and continue to make deposit for a further block period of 5 years by applying in Form-4.

The option of extension of account shall be made by the account holder before expiry of one year from the maturity of the account.

Only those PPF accounts, which got matured with regular subscription or which have been regularized before maturity, are eligible for further extension.

No. He cannot apply for extension before maturity. He can apply for extension after maturity by submission of Form - 4 to the Branch within one year of maturity. This form also contains declaration that customer is not an NRI on the day of maturity.

Upon death of the subscriber, settlement of the balance in the PPF account will be made to the Nominee or to the Legal Heirs after submission of necessary documents.

Yes, the PPF account continues to earn interest at the notified rate even after the death of the subscriber.

The account will get 1 % less interest than the interest payable in the account from the date of opening to the date of premature closure of the account. If a PPF account has already completed 15 years and has subsequently been extended and is closed prematurely before the completion of the current 5-year block period, the reduction in interest by 1% shall be applicable from the date of commencement of the current 5-year block period and not from the date of the initial opening of the account.

Interest is credited in the account as on 31st March every year (calculated on the minimum balance between the close of 5th day and end of the month).

If the account is discontinued at any time, repayment of subscription along with interest will be made only after 15 years from end of the financial year in which account is opened.

Only one withdrawal is permissible during any one year.

A customer can extend the tenure of a Public Provident Fund (PPF) investment for any number of times of block period of 5 years each time beyond the maturity period by submitting Form 4 within one year from the date of maturity.

Yes, a subscriber may, after maturity of the PPF account, continue the account for one or more blocks of 5 years without loss of interest on written request within 1 year from the date of maturity.

Yes, PPF account can be continued after maturity without making any further deposits. The balance will continue to earn interest at the notified rates. The subscriber can make one withdrawal of any amount within the balance available in each financial year.

By filling up Form-10 for nomination, change of nomination in PPF account can be done.

No, Nominees are not allowed to operate the account of deceased subscriber. The account needs to be closed by submitting proof of death.

Yes. The balance in a discontinued account not revived by the account holder before its maturity shall continue to earn interest at the rate applicable to the Scheme from time to time.

No. Amount standing to the credit of any account holder shall not be liable to attachment under any Decree/ Order of any Court in respect of any debt or liability incurred by the account holder.

Yes. It is possible to transfer PPF Account from one bank Branch to another bank Branch or from one bank to another bank or from a Post Office to a bank and vice-versa.

On transfer of PPF account, documents are received at PPF Account Transferee bank Branch, Customer is required to submit fresh PPF account opening form and Nomination form, along with original passbook. Further, customer is required to submit a fresh set of KYC documents.

A penalty of Rs. 50 will be levied per year of default if the customer does not deposit the minimum deposit amount of Rs. 500 on the completion of the financial year.

The amount invested is eligible for deduction under Section 80C of the Income Tax Act upto Rs 1.50 lakh. The interest earned on PPF deposits is exempt from Income Tax.

Yes. In the event of her marriage, a female subscriber may request for change in name of the account by submitting documentary evidence for the same.

No. Only one PPF account can be maintained by an Individual, except for an account that is opened on behalf of a Minor.

The facility of loan and partial withdrawal is not allowed in any discontinued account. These facilities are permitted only after the discontinued account is revived by payment of penalty and arrears of minimum deposits.

The ROI is fixed by the Government. PPF account Interest rate is announced quarterly by Ministry of Finance, Govt. of India.

The rate of interest on the loan will be 1% per annum on the principal amount.

The account holder can avail loan facility only once in a year.

Yes. For premature closure, interest in the account shall be allowed at a rate which shall be lower by one percent. than the rate at which interest has been credited in the account from time to time since the date of opening of the account, or the date of extension of the account.

Yes. Depositor can nominate one or more individuals as nominee but not exceeding four individuals to receive the eligible balance. The balance in the account of the deceased account holder shall earn interest till the end of the month preceding the month in which the eligible balance is paid to the nominee/legal Heir.

Yes. SMS alert at the frequency of two months, one month and one week before maturity is sent to the account holder reminding them to renew their account before maturity.

Yes. The customer gets SMS alert and email after Nine months of maturity.

No. Deposit cannot be made in the account if the subscriber fails to give his option to extend the account within one year from the date of maturity. Any deposit made in such account shall be treated as irregular and to be refunded by bank immediately without interest. However, the balance in the account on the date of maturity shall continue to earn interest up to the end of the month preceding the month of closure.

Existing customers having KYC compliant accounts in the bank can open new PPF accounts through “https://www.onlinesbi.com” w.e.f. FY2022-23 under the navigation-Login –> e-Services  Online PPF Account Opening.

Existing PPF customers can opt for Nomination through “https://www.onlinesbi.com” w.e.f. FY 2022-23 under the navigation- Login  Request and Enquiry –> Nomination.

Existing PPF customers can extend their PPF account for 5 years, through “https://www.onlinesbi.com” under the navigation- Login --> e-Services --> PPF Account Extension.

Form-16.The branch to give duly filled Form-16 to the transferee office, in case account opening forms are not traceable. The transferor branch shall verify all the information appearing in account opening form/Form-16.

Yes. Change of name or surname may be allowed by the branch by following the procedure laid down by RBI for change of name or surname in Bank Savings account.

Yes. Non-resident Indians shall be eligible to be nominated as nominee subject to the condition that payment to such nominee/s shall be on non-repatriation basis.

Yes. In the event of death of guardian or on order from any Court of Law in any case of change in the guardian ,the succeeding guardian shall be eligible to operate the account of the minor or the person of unsound mind as the case may be.

If a depositor dies and there is no nomination in force at the time of his death, and the probate of his will or letters of administration of estate or a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925), or legal heir certificate issued by the revenue authority not below the rank of Tahsildar having jurisdiction, is not produced within six months from the date of death of the depositor to the Branch ,where the account stands, then,-

if the eligible amount in the account does not exceed Rupees five lakh, the branch, for reasons to be recorded in writing, may pay the same to any person appearing to the branch as the rightful claimant and to the satisfaction of the branch ,to be entitled to receive the amount or to administer the estate of the deceased, on an application in Form- 11 accompanied by the following documents; namely:-

• Death certificate of the account holder;
• Passbook or deposit receipt or statement of account in original;
• Affidavit in Form-13;
• Letter of disclaimer in Form-14;
• Bond of Indemnity in Form-15; and
• Identity proof of the legal heir;

Provided further that, in case of any dispute raised before the Branch and before the payment of claim, the amount shall be paid by the Branch to the claimant on submission of a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925) issued by the Court only along with the following documents; namely:-

• Claim form;
• Pass book or deposit receipt or statement of account in original;
• Death certificate of the account holder; and
• Identity proof of the legal heir.

If the eligible amount in a deceased account is above Rupees five lakh, the amount shall be paid by the Branch to the claimant on submission of the probate of his will or letters of administration of estate or a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925) issued by the Court, or legal heir certificate issued by the revenue authority not below the rank of Tahsildar having jurisdiction along with the following documents; namely:-

• Claim form;
• Passbook or deposit receipt or statement of account in original;
• Death certificate of the account holder; and
• Identity proof of the legal heir;

Provided further that, in case of any dispute raised before the Branch and before the payment of claim, the amount shall be paid by the Branch to the claimant on submission of a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925) issued by the court only along with the following documents; namely:-

• Claim form;
• Passbook or deposit receipt or statement of account in original;
• Death certificate of the account holder; and
• Identity proof of the legal heir.

Yes, these are responsibilities of the branch maintaining the account.