Opening a PPF Account in India
Where can you open a PPF account?
How to open a PPF account?
a. Identity proof (e.g. passport, driving license, etc.)
After opening the account an initial installment amount should be paid. Once this is paid a pass-book is issued which reflects the balance in the account.
Eligibility for opening a PPF account
- A PPF account can be opened by any Indian citizen in his/her own name or as guardian in the name of a minor child.
- One person can hold only one account.
- NRIs are not eligible to open a PPF account.
- Subsequent to opening a PPF account if a person gets an NRI status, he can continue with the account that he had earlier opened prior to becoming an NRI.
- A PPF account can be opened by the parents on behalf of their minor children, though the same minor cannot hold more than one account.
- PPF account cannot be opened by grandparents towards their grandchildren, though they can open accounts in the absence of parents acting as guardians.
One can invest Rs.70000 as a maximum limit per year and Rs.500/- which is the minimum investment to keep the account active. The amount can be done as a one-time lump sum or in 12 monthly installments.
What is the interest rate and tenure of PPF?
Loan availability against the PPF account
What are the Tax Benefits?
In addition to the above, you can extend the PPF account for a block of 5 years beyond the maturity period of 15 years, by submitting form H within one year from the date of maturity of the account. A premature closing or withdrawal from PPF account is not permitted. The PPF account can be transferred from one authorised bank/post office to another. For this purpose the customer has to make an application for transfer of such an account.
While you can operate an account online, it is mandatory to visit the bank for opening the account. The account opening form can be downloaded from the government websites and filled in. But submission of the forms along with the required documents and passport size photographs should be done in person at the nearest bank or post office.