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How To Transfer PPF Account From One Bank To The Other?

PPF is a great way to save money and tax. Generally, users open PPF accounts at Post Offices or Nationalized Banks like SBI. These banks do not offer best experience when it comes to online banking and making payments to PPF and checking the account balance is still an offline process. Hence sometimes it makes sense to transfer the PPF account to a private bank and take advantage of online banking for PPF account.

Through this article, we’ll see how to transfer ppf account from one bank to the other smoothly. But before that, let’s understand why it is important to have a PPF account.

Why to open a PPF account?

Smart savings today are crucial. Merely investing in a bank today doesn’t guarantee you appropriate returns for your money. Investing smartly and in the right scheme is equally necessary for any person.

One of the few methods through which one can smartly invest his money and get returns is the PPF account which stands for Public Provident Fund account.

PPF Account

A PPF account is a very smart saving scheme launched by the central government of India for residents of India. A foreigner can’t open a PPF account neither can an NRI. However, in case a person becomes an NRI during the period of PPF account holding, the individual can continue on for that particular term. PPF requires you to deposit a minimum amount of ₹500/- in one transaction and can go up to ₹1 lakh per year and that can also be done in one transaction. Minimum one transaction per year is necessary.

Following are some advantages of a PPF account:

  • Tax free returns
  • Decent rate of interest (current rate is 8.7% p.a., varies from year to year)
  • Long term saving scheme
  • Flexibility in amount to be deposited

Need for Transfer of PPF account

A PPF account can be opened with any nationalized bank, an authorized private bank (ICICI, IDBI, etc.) or the Indian post. The scheme remains the same regardless of the institution you choose to open the account with. However in certain circumstances, convenience and vicinity can become an issue. Plus the service and customer care of the private banks and even nationalized banks are supposedly better than that of the post office. In situations like these, one needs to transfer the PPF accounts from one institution to the other. The provision for this is also available in this scheme and the procedure to be followed is explained as below.

 How to Transfer PPF account from one Bank to the other?

The process of transfer of a PPF account from one bank to another bank or the post office, or vice-versa is very simple. The biggest advantage of this is that no amount is deducted as a fee for the transfer. However, in comparison to the other types of transfers, this process takes quite a long time. Generally, the transfer takes around 2 weeks’ time.

  • Step 1 – In order to make the transfer, simply approach the bank or post office branch where the PPF account is held and ask for the form for making the transfer. The bank or post office will provide you with a form which is to be filled. The sample PPF form of SBI available online.
  • Step 2 – The existing bank will then forward the certified copy of the account, the account opening application, nomination form, and specimen signature. It will also forward the cheque/dd for the outstanding amount in the PPF account to new bank at the branch specified by the customer.
  • Step 3 – Once your bank receives these documents, the bank will inform you and ask you to submit a new PPF account opening form along with the old PPF passbook. You can also provide nominations for this new account. You will also be required to submit the KYC documents.
  • Step 4 – If you hold an internet banking facility with your bank, after a few week, check that the transferred PPF account now shows up under the PPF account tab/link in your login. If that is not the case, enquire the local bank branch

Making online payments to PPF account

Bypassing the offline route is another smart way of banking nowadays. Same can be done for the PPF accounts as well. In order to make the payments and transfers online without having to visit the branches, you must first get yourself registered via the offline route which obviously involves standing in queues, but that’s just one time. Following steps need to be followed for making online payments to PPF accounts:

  • Get yourself registered with your bank for an online net banking account.
  • After you have registered yourself, login to your account to make the transfers. Choose the option of third party transfers.
  • In order to transfer funds directly in to your PPF account, nominate the PPF account you hold as a beneficiary account.
  • In order to do this, you must first enter all the required details. Then select the branch of the bank in which your account is held. The final step involves you adding the Payee account number.
  • Once the PPF account has been nominated as the beneficiary account, rest of the process is standard online bank funds transfer process, which involves filling up of forms and entering necessary details.

Just as a cautious measure for beginners, it is advisable to first make an online transaction of the minimum amount possible that is a sum of ₹500/- which helps the customer get used to the new means and methods of online transactions.

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11 Responses to How To Transfer PPF Account From One Bank To The Other?

  1. Vivek June 6, 2014 at 10:24 am #

    Just an update: I use SBI PPF account and it is all online. I can deposit online, check my balance online, and they also send monthly receipts. It is connected to my savings account so I do not need to log in separately for the PPF updates. Now a days SBI is quite handy as far as PPF and savings accounts are concerned.

  2. Ramesh June 7, 2014 at 5:05 pm #

    Thanks Vivek for the comment. Yes PSU banks are fast catching up. But when it comes to customer service, I still feel that private banks are way ahead of PSU banks.

  3. kalyan bhattacharya October 28, 2014 at 6:33 pm #

    sbi account for ppf is not accepting other bank cheque for ppf depositpladvise any such rule is there also my ppf account started on 31.03.90 extended first time on 31.3.210 and send extention upto 31.3.2015. mention on the bank sbi said account closed is it possible can I go for consumer court.

  4. Dinesh November 11, 2014 at 12:10 am #

    Hi, Is it good transferring my PPF account from SBI to ICICI as I have an ICICI saving account and could be easier to maintain the same.
    I mean can it be done easily? also if you please suggest is it a good idea to transfer to ICICI.

    Thanks in advance.

  5. saroj kumar sah November 21, 2014 at 2:51 pm #

    How can transfer my sbi ppf account from sbi branch Delhi airport cargo mahipalpur to my home town sbi branch station road Ara Bihar.at present I am at Kota.I have not net banking.pls help me.

  6. Mahesha December 4, 2014 at 9:25 am #

    I agree with Vivek. I maintain my PPF account in one SBI branch and avail services from PBB branch. Of course I have both Savings and PPF linked online. I also hold accounts with ICICI and HDFC. But I have received the best service from SBI PBB. When it comes to loans, SBI is the best. Your loan account will be a negative balance account – you can repay as much as you want – any number of times you want. Absolutely no restrictions on extra repayments unlike private banks. Banking goes beyond posh interiors and good looking staff.

  7. Debashish January 14, 2015 at 2:28 pm #

    I have PPF accounts for self and wife and I find SBI extremely good on this. On transferring money from my savings account I can generate an IT statement online to claim 80C benefits, there is online access to the account and linked with my savings account.

    On the contrary I opened a PPF for my minor son with ICICI and have been cursing the day I did so, since its a minor account no money transfer was possible from my kid’s savings account at ICICI (which they forced me to open), since customer Ids are different I cannot transfer amount from my ICICI savings account either. On top of that they refused to issue me a passbook from the branch I have opened the account it, it later became known to me that that the account is actually operated from some “super” branch of theirs located quite far off from my place and the other branches just ac as sub-offices, creating PPF accounts. The most irritating part was when my wife transferred some amount to kid’s PPF and the teller didn’t add any narration of who gave the cheque etc, on several rounds I was issued a statement but it carried no detail of who did the transfer, hence my wife couldn’t claim any ITax benefit. ICICI tells me “since my kids’s account is linked only with my PAN, both parents cannot avail benefit of tax relief”. I hope this will change your opinion about private banks being more effective here, its the very contrary.

  8. Chandrakant Mishra April 6, 2015 at 10:35 am #

    I agree with the Ramesh, Customer service of private banks is better. But you opening a PPF account with PSU would be easier. I tried to open a PPF account with Axis bank, they did declined as I don’t have a saving account with them. Whereas, Bank of India readily opened a PPF account. Later, I opened a saving account with BOI. Now I can see and deposit the PPF subscription into my account online.

    Chandrakant

  9. Nirav Suthar July 20, 2015 at 2:22 pm #

    Hi ramesh, very nice article. I just have another query that how should i swap PF accounts between organizations, i have recently changed my job.

  10. Pitam Singh November 17, 2015 at 11:34 am #

    Take care while you get your ppf transferred from one place to another place.It is transfer of account and not just transfer of balance.Verify that your new bank/P.O has not changed initial opening date of your account.

  11. PRAMOD PILLAI December 22, 2015 at 10:04 am #

    i want to transfer my and my minor daughters ppf account,from sbi moradabad up ,to trivendrum branch. i have misplaced both passbooks. how to do it,kindly advice
    pramod pillai

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