India - Information about Public Provident Fund

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Procedure

Opening An Account

A PPF account can be opened at any branch of the State Bank of India (SBI), its associated banks such as the State Bank of Travancore, or with some other nationalized banks (except those managed by single officer/clerk). A PPF account can also be opened at any head post office, selected grade post offices, or a General Post Office (GPO). One or more nominees can be elected. Name, address and signatures of two witnesses are required to elect a Nominee.

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Required Documents

• Aadhaar Card

Office Locations & Contacts

Please list down the office locations that can be approached for applying. External links can also be used for specifying office locations.

Eligibility

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Fees

Deposit

It is mandatory to make the first deposit in cash. Subsequent deposits can be paid by cash, cheque or demand draft. The minimum deposit is Rs.500/- and maximum is Rs. 70,000/- in a financial year. A minimum amount of Rs.500/- is mandatory in each financial year. Deposits can be made in multiples of Rs 5/- only

The deposit can be in lump sum or in convenient installments - not more than 12 Installments in a year or two installments in a month.

Deposits can be made at any branch of the bank / post office in which the account has been created. SBI also allows payments through online transfer using NEFT.

Withdrawal

Check out Scheme

Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

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Sample Documents

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Processing Time

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Related Videos

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites.
Please remove the "&" inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M". 
	

Instructions

Please provide other instructions related to the certificate/documents.
e.g. The state office holds birth records since january 1908.

Required Information

A list which displays the kind of information which is required to complete the procedure.
e.g.
1. Date of Birth.
2. City or County of Birth.

Need for the Document

Public Provident Fund (PPF) account is a long term saving scheme introduced by the Government of India in 1968. It allows members of the Fund to make contributions to it and obtain Income Tax rebate.

Information which might help

Loan

Check out Budget

Transfer

A PPF account can be transferred free of charge from a branch of one designated bank to another.

Loan

A depositor can avail of loan facility in the third financial year from the financial year in which the account was opened. Application in prescribed form is to be made for loan along with the pass book of the account. In case, the loan is sought from minor's Account, the guardian has to make a declaration that the money is required for the use/benefit of the minor. (See notes for declaration.)

The loan can be taken up to 25% of the amount in the account at the end of the second year immediately preceding the year in which the loan is applied for. The loan is repayable in lump sum or convenient installments. Each loan has to be paid in 36 months or lesser time.

PPFs cannot be used as a security for mortgage and other purposes.

The loan can be taken against PPF between year three and year six and not before that.

Account Lapse & Termination

Accounts in which deposits are not made are treated as discontinued accounts and such accounts cannot be closed before maturity. The discontinued account can be activated by payment of minimum deposit of Rs.500/- with default fee of Rs.50/- for each defaulted year.

The subscriber may discontinue his account anytime after joining the fund. The repayment of the subscription with interest will be made only after 15 years from the end of last payment.

The account holder can retain the account after maturity for any period without making any further deposits. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account is closed.

Other uses of the Document/Certificate

 Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

About PPF

Further Notes

• The entire balance in a PPF account is exempt from Wealth Tax
• The balance in a PPF cannot be attached under a court decree
• A PPF account cannot be transferred from one person to another. Even in the case of death of a depositor, the nominee cannot continue the account
• The benefits of exemption of interest from Income Tax is not available on deposits made in a PPF account after expiry of fifteen years without exercising option in writing for continuance of the account within one year
• PPF accounts can be opened and operated through an authorized agent appointed by the National Savings Organisation
• Only local cheques are accepted for deposit and the date of presentation of local cheque and demand draft is treated as date of deposit in the Account
• The deposit in a minor account is clubbed with the deposit of the account of the guardian for the limit of Rs.70,000/-
• Deposits in excess of Rs.70,000/- in a financial year in a PPF account are refunded without interest and the excess amount is not considered for income tax rebate
• Account may also be opened by an association of persons or a body of individuals consisting in either case, only of husband and wife governed by the system of community of property in force in the State of Goa and the Union territories of Dadra and Nagar Haveli and daman and Diu, by whom or on whose behalf money is deposited in an account and the deposit means money is deposited
• If a resident who subsequently becomes Non Resident Indian during the currency of the maturity period prescribed under Public Provident Fund Scheme, may continue to subscribe to the Fund till its maturity on a Non Repatriation Basis
• Declaration for withdrawal for minor - " Certified that the amount sought to be withdrawn is required for the use of ...... Who is alive and is still a minor."
• If the account is opened in the name of the minor and the minor attains majority before the maturity of the account, the ex-minor will himself continue the account thereafter. He will submit a revised application form for opening the account to the Accounts Office. His signature on the application form will be attested by the guardian who opened the account of the minor or by a respectable person known to the Branch
• Premature closure of a PPF account on grounds of genuine hardship could be considered only after the expiry of five years from the end of the year in which the account was opened.

Others

More information which might help people.