April 20 , 2013
Public Provident Fund (PPF) is one government savings scheme that has caught up with technology, though not by its own efforts. Few banks provide PPF service through their online net banking system.
Banks offering online PPF services
A couple of banks like SBI and its subsidiaries, ICICI Bank, Union Bank, Vijaya Bank, Bank of Baroda, Central Bank of India, Andhra Bank, Indian Overseas Bank, IDBI Bank, Canara Bank are providing PPF services in some of their branches. Not all branches of these banks are authorized to provide PPF service. You'd find the list of branches designated for PPF on the bank's website.
Of these, as of now SBI, ICICI Bank and IDBI Bank have been authorized to provide online PPF facility. An online PPF account would have the same features as the regular one with post office in terms of interest rate, loan facility, withdrawals conditions etc. The only difference in online PPF account would be the convenience- you can invest in it online.
How to invest in PPF online
To invest in PPF online through one of the banks, you need to have PPF account with the same branch and internet banking facility. PPF account opening might not be possible online (ICICI Bank allows this); it has to be done by physically submitting the filled application form at the bank along with necessary documents.
Post account opening you can invest online in PPF account by making NEFT transfer. Your PPF account number should be added as the beneficiary or payee in your net banking account. The name should be same as it appears in your PPF account.
Maximum investment limit in PPF is Rs 1 lakh annually. You can invest Rs 1 lakh lumpsum or in maximum 12 installments of at least Rs 500.
Viewing PPF account balance online
If you have an online PPF account you will be allowed to view balances and print passbook statement online.
Transferring existing PPF account to online account
If you already have a PPF account with a Post Office or a bank and want to avail PPF facility online you can transfer the existing PPF account to a bank branch providing this service. You would also require opening a savings account at that bank branch.
This is what is to be done for transferring an existing account with a Post Office- submit an application at the post office for transfer mentioning details of bank branch where you wish to transfer PPF account. Once application is processed the post office will send your original documents such as account opening form, nomination form, specimen signature etc to bank branch accompanied by a cheque/DD of the outstanding balance in your account.
Once this is received at the bank you are supposed to submit fresh PPF account opening form, PPF nomination form and the original passbook.