How to open and manage PPF Account in SBI (State Bank of India)
Over years, life has become quite hectic for everyone, especially in India. In today’s world, there is so much to do and time is always short to work on or plan things. During this course, we often tend to ignore an efficient tax saving planning and how we would save our hard earned money.
For reference, PPF is a great tool of tax saving; however, we are often not able to make the best use of it. In this article, we would focus on how you could open a PPF account in SBI conveniently and manage it efficiently at your convenience.
Online banking is an effective tool of money and tax management. For example, you can not only open a PPF account online with State Bank of India, but also manage it to pay your contributions online. There, are enormous benefits of operating a PPF account due to its EEE tax exemption, the details of which are mentioned in our other articles on PPF.
For that matter, a PPF account can be opened in any of the nationalized and private sector banks plus all the post offices, however, we would focus on the processes involved in SBI only, in this article.
Choosing the SBI Branch for PPF Account
You can open a PPF account at any of your nearest SBI branch. However, it should not be an annexure of mini branch. In the first place, choose a branch which is near to your locality and reaching where is convenient for you. It would be better if you contact the same branch where you may already have an SBI account. Even if you do not have an SBI saving account, you just need to visit any branch of SBI and do the needful as asked by the bank executive.
For your reference, you do not necessarily have to have a Saving/Current Account in order to open a PPF account. They are two separate products altogether. To search an SBI branch in your locality online, you can use the online SBI locator.
Online SBI PPF Account Opening Process
If you are an SBI customer already and your net banking is activated, you can apply for a PPF account online itself. All you have to do is login to your net banking account and follow the process below:
- Login to your net banking
- Once logged in, you would see a tab at the top as ‘e-Services’. Click on it
- On the left hand side of the page, click on the link ‘New PPF Account’, that would open a new page
- The page would show you’re your name, address, CIF Number and PAN Card details, which should be true as per your information.
- You can input your branch code and branch name in the boxes provided. If you are not sure of your branch address, click on the tab ‘Get Branch Name’
- Input the nominees at the bottom and allocate a percentage of share for each nominee
- Once you have filled all these details, click on ‘Submit’
- You would receive a new page in front of you that would be in the form of a form, which you need to take print out of and visit your branch for further processing.
- At the branch, visit the concerned official and handover the print out form along with necessary identification proof, as asked by the officials.
- They would open your PPF account and hand over you your passbook.
Offline SBI PPF Account Opening Process
You need to follow the below mentioned process to open a PPF account with SBI through offline mode:
- Visit the nearest branch, as located and chosen by you
- Meet the concerned official and ask for PPF Account Opening Form
- Fill the form neatly and attach documents like Proof of Residence, Identity Proof and 2 passport size photographs with the form
- The documents you are submitting should be self attested by you and you should carry the originals of the documents with yourself. The bank officials might ask you to show them for verification.
- Once you handover the documents and filled form to the concerned officials, they would ask you to deposit the minimum amount, i.e. Rs 500 or more in your PPF account
- You would be issued a PPF passbook that would show all your account details along with the transactions done on your PPF account
Online Transactions in SBI PPF Account
For those who have got their PPF account opened in SBI can start using the online transaction facility. This means that you can keep depositing from your internet banking account to your PPF account and can also keep a track of the deposits and the balance amount at regular intervals. The best thing is that you can deposit any amount between Rs 500 to Rs 1.5 lakh in a fiscal year and a maximum of 12 times a year.
If you are using online transactions, it is always conduce for you since you don’t have to visit the branch every time you need to make any payments. We often procrastinate things if we have to visit somewhere physically. If you have online transfer facility, you can transfer the amount anytime you want.
All is required is an internet banking activation on your PPF account, which you can ask for from your branch at the time of account opening.
Follow the below mentioned while making online payments to your PPF Account:
When you would be making payments for your PPF account, the system would require your account number. Input your SBI account number, as mentioned in your passbook.
The name of Payee should be the same as that of the name of your PPF account. (For example, if the account was opened with the name of Prabhat Kumar Singh, the payee’s name should be mentioned as Prabhat Kumar Singh and nothing else like P K Singh, PK Singh, Prabhat K Singh, etc.)
Offline transactions in SBI PPF Account
It is always convenient to do transactions online; however, it is not really mandatory always. You can deposit money to your PPF account by visiting your branch physically as well. All you would be required in the branch is to fill in the pay-slip and deposit it along with the money at the cash counter.
You can also pay in your PPF account through an account payee cheque, however, it would require sometime before the amount shows in your account, subject to clearing of the cheque. Always remember to carry along your PPF passbook while depositing money and update it from the passbook updation counter.
ECS or Auto-Debit Facility in SBI PPF Account
So far we have discussed about online net banking and offline payment deposit to your PPF account. There is also a third method through which you can contribute to your PPF account monthly.
You can opt for an ECS or auto-debit facility and get your PPF account and Saving Account connected. Every month, the set amount would be automatically transferred to your PPF Account. To avail ECS or auto-debit facility, you need to contact your branch and fill the ECS form.
The process of transferring PPF account from Post Office to SBI
According to PPF scheme, your account could be transferred from a post office to a bank and vice versa. Likewise, you if you already have a PPF account in post office and want to avail online facilities offered by SBI, you can get your account transferred from Post Office to a nearest SBI branch. This is what you should do:
- Visit your home post office branch and ask for the Form SB-10b.
- Fill the form neatly as directed by the post office representative
- Submit the form along with an identity proof for transfer of your account to SBI branch of your choice
- The head postmaster would send you account details and documents directly to the SBI branch of your choice.
- These details would also include your current status of contribution and accumulated amount on your PPF account
- Once these details reach the SBI branch, you need to fill account opening form (Form A) again and attach your KYC documents for account opening in SBI
- Furthermore, you would have to follow the same process as that of account opening and after successful PPF Account opening at SBI, you would be issued your passbook
As you can see there are a number of facilities that are offered by SBI in terms of PPF scheme. The best one among them is the convenient online transaction service that enables you to contribute to your PPF account in just few clicks. All you need to do is take the first step and that would ensure a sound future for you.