The PPF or Public Provident Fund scheme is a government backed investment option. It is introduced by the National Savings Organization in 1968 to mobilize small savings. Country's largest lender SBI offers the facility to open PPF schemes.
Decent returns and income tax benefits are the main attractions of PPF. As SBI is a trusted brand name in the banking industry, PPF account opening in SBI is always preferred by the people.
Know more details about Public Provident Fund (PPF) Amendment Scheme, 2016 through SBI.
How to apply?
To apply for the PPF Provident Fund (PPF) scheme, 1968, in SBI the applicant need to fill and submit Form A. The applicant can submit it at any SBI branch with relevant documents. You have to mention the name of the SBI branch where you wish to open the account in the form.
Following documents are required for opening a Public Provident Fund (PPF) account with SBI
- PPF account opening form (Form A )
- Nomination Form
- Passport size photograph
- Copy of PAN card/ form 60-61
- ID proof and Residence proof as per Bank's KYC norms
There are some criteria for investing under Public Provident Fund (PPF) Amendment Scheme, 2016.
A PPF account can be opened by resident Indian Individuals and individuals on behalf of minors.
Only one Public Provident Fund (PPF) account can be maintained by an Individual, except an account that is opened on behalf of a minor.
A Public Provident Fund (PPF) account can be opened either by the Mother or Father on behalf of their minor Son or Daughter.
The Mother and Father both cannot open Public Provident Fund (PPF) accounts on behalf of the same minor.
There is a minimum and maximum limit for the amount that can be invested in the Public Provident Fund (PPF) Amendment Scheme, 2016. The minimum deposit amount is Rs 500 per annum, and the upper ceiling limit is Rs 1,50,000 per annum.
Failure in deposit
There is a penalty if you fail to deposit any amount in one or more Financial Years to your SBI PPF account. A penalty of Rs 50 will be levied per year of default if the customer doesn't deposit the minimum deposit amount of Rs 500 on the completion of the financial year.
PPF account maturity
A Public Provident Fund (PPF) account in SBI gets matured after the completion of 15 years from the end of the year in which the account was opened. There is an option to extend the tenure of a Public Provident Fund (PPF) investment beyond the Maturity Period. If you wish to continue the tenure of a Public Provident Fund investment, you can extend it for a block period of 5 years beyond the maturity period by submitting Form H within one year from the date of maturity.
Multiple PF accounts
Only one PPF account can be maintained by an Individual. This limit is except an account that is opened on behalf of a minor.