A Public Provident Fund (PPF) account in India is a popular long-term savings and investment option. PPF is a government-backed savings scheme introduced by the Ministry of Finance in India. It falls under the Small Savings Schemes and is governed by the Public Provident Fund Act, 1968. An SBI PPF Account can be opened across all the branches of the bank across the nation.

Key Features of SBI PPF Account

1. Investment Limits A minimum of Rs.500.00 subject to a maximum of Rs.1,50,000 per annum may be deposited.
2. Original duration is 15 years. Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.
3. The rate of interest is determined by Central Govt. on quarterly basis. At present it is 7.10% per annum with effect from 01.04.2020.
4. Loans and withdrawals are permitted depending upon the age of the account and balances as on the specified dates
5. Income Tax benefits are available under Sec 88 of IT Act.
6. Nomination facility is available in the name of one or more persons. The shares of nominees may also be defined by the subscriber.
7. The account can be transferred to other branches/ other banks or Post Offices and vice versa upon request by the subscriber. The service is free of charges.

SBI PPF Account Interest Rate

As per the regulation, the PPF account interest rate is uniform across all banks/post offices that operate the scheme. The SBI PPF account interest rate may change every quarter with respect to Ministry of Finance’s announcements.

How to Open a SBI PPF Account Online

SBI PPF account online opening procedure is very simple and can be done online with the help of internet banking or mobile banking.

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.

Procedure to Open an 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

8) Make sure you have all the original KYC documents at the time of branch visit for PPF account opening for verification purposes

Documents Required 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

SBI PPF Account

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 also offers the opportunity to open a PPF account easily. An SBI PPF Account can be opened across all the branches of the bank across the nation.

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
• The current SBI PPF Interest Rate is 7.1%
• PPF Deposits can be made in a lump sum amount or through a maximum of 12 instalments annually
• SBI PPF scheme 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 Interest Rate

As per the regulation, the PPF account interest rate is uniform across all banks/post offices that operate the scheme. The SBI PPF account interest rate may change every quarter with respect to Ministry of Finance’s announcements.

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 Required 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 2 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.

• Online Deposit

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.

SBI PPF Withdrawal Rules

Okay, so your PPF account hasn’t completed 15 years, but you are in need of funds. What can you do?

Of course, you can withdraw from your PPF account, and as we saw at the beginning of this article, these premature withdrawals are also tax-free. So, you don’t need to worry about the taxes.

But these withdrawals are not so straightforward.

First, you can make premature withdrawals from your PPF account only after the completion of 5 years.

Do note that 5 years means 5 completed financial years starting from the end of the financial year in which you made your first deposit.

So, technically, premature withdrawals are possible only from the 7th year of making the investment.

For example, if you make your first PPF investment in August 2023, you can make a premature withdrawal only after April 1, 2029.

There are some other requisites as well.

• One, you can make only one premature withdrawal in a financial year.
• Two, you can withdraw either up to 50% of the account balance at the end of the financial year or 50% of the amount at the end of the fourth financial year preceding the year of application, whichever is lower.

For instance, if you make a premature withdrawal request in August 2023 and your PPF account has completed at least 5 financial years, you will get either 50% of the corpus at the end of FY23 or at the end of FY20, whichever is lower.

What if you need to make a withdrawal before 5 years? Well, that’s not possible. But you sure can opt for a loan against your PPF balance.