How to Open a PPF account at SBI Bank

POSTED BY Jagoinvestor ON February 4, 2010 COMMENTS (829)

Most of us want to open a PPF account, but keep postponing it just because we don’t know the requirement of doing so? It seen that majority people open their PPF account with State Bank of India. Let us see 3 easy steps of opening a PPF account in SBI branch.  The whole process does not take more than 30-45 minutes if you prepared in advance and go with all the documents that are required and there are no road blocks in between. The biggest advantage of opening the PPF account with SBI is the online transaction facility you can use to deposit in your PPF account online and dont have to rush to the branch every now and then. Read why you should open a PPF account in SBI even if you dont need it right now.

3 Steps of Opening a PPF Account in SBI Bank

PPF account in SBI

1) Choose a SBI branch which is authorized to go government business.

Usually any ‘large’ branch with lots of customers should be able to this! Usually newer and smaller branches may not have this clearance facility. One doesn’t need to have a Saving Bank  account in that branch. Locate your nearest SBI Branch using this

2) Procure and submit PPF account opening form and Identity/address Proofs

It would only 3 minutes to fill. Choose a nominee and get a witness signature. Now you have to submit anyone of following Proofs.

  • Passport
  • Pan card
  • Driving license
  • Voter id
  • Ration card
  • Two Passport Size Photographs

Any government issued identity card or address proof should work. Keep originals for proof in hand to simplify the verification if needed. That’s it. The bank should now be able to open the account. Usually it may take about 20 minutes or so.

3) Get PPF Passbook

A pay-in slip needs to be filled and the initial subscription needs to be credited into your account. A passbook similar to a Saving Book passbook will be issued with your photo affixed and the nominee’s name stated.  PPF rules can be found on the back. This is all, your PPF account in SBI is opened now.

How to Link your Online SBI Account to SBI PPF account for Online Transaction

If you have an online SBI account, you can add the PPF account as a third party account for transferring money directly. As mentioned above the PPF account can be in any SBI branch. There are no processing charges for doing this transfer. When you do this online for the first time, go to the bank and update your PPF passbook and check if the transaction has occurred correctly. This has to be done since you cannot look at the amount in the PPF account as yet in SBI. This is a major drawback of SBI-PPF (and post office) accounts.

A standing instruction maybe issued from your online account for auto-credit to PPF. However there are two disadvantages

  • Rarely there maybe system failures and the standing instruction may not get honoured. So you need to check if it has occurred.
  • You cannot subscribe a lower amount if you need the cash for emergency use (this situation wont arise if you had an emergency fund )
  • You need to go to the bank to cancel the standing instruction .

There are only 12 credit transaction allowed per year. So take care of this before issuing a standing instruction.

How to Transfer your PPF account from One Bank to Another

  • Go to the branch where you want to transfer your PPF account and deposit an application with your PPF passbook
  • takes 10-15 minutes

How to Submit Proof for Tax

Take xerox of the PPF passbook updated with all transactions and get it attested in the branch. (not sure if the attestation is really required) [ Update 5th Feb, thanks for Mithilesh ]

Other points to Consider

Subscriptions must be made before the 5th of every month for the amount to taken into account for interest calculation for that month. If you want to open a PPF accoun in the name of a minor in addition to yours, the total PPF investment limit is Rs. 1,00,000. The total tax benefit is also the same. This is a new rule and is not yet printed in the PPF passbooks! See Here, Here and Here for more detail

Comments please. Are you going to Open a PPF accoun this year? Do you feel one should open a PPF account at Post Office?

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829 replies on this article “How to Open a PPF account at SBI Bank”

  1. Suren says:

    Hi Manish,

    There is no drawback of SBI-PPF accounts. You can always have the online viewing rights from SBI for PPF account opened with them. I’m already having this facility for my SBI PPF Account since 2011. I always transfer my PPF subscription online from my SBI savings account.

    The following are the benefits of viewing rights in PPF account.
    – I can always check the credit of my PPF subscription instantly
    – I can download the PPF passbook
    – I can check the annual interest credited to PPF account.

    1. Hi Suren

      Thanks for your sharing your valuable comment on this topic. Please keep sharing your views in future also

      Manish

    2. hi, suren
      i would like to know how to change the amount in standing instruction in SBI-PPF.
      I wish to change from 3000 to 1000 .
      thanks

      1. Hi Abhishek

        This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that

        Manish

      2. Adithya says:

        There is no option to modify your standing instruction. There is a chance to cancel the existing Standing instruction and create new standing instruction with the amount as you want. please check in e-services tab in SBI netbanking.

    3. Amit Kumar says:

      Can anyone open the PPF account in SBI without having saving account in SBI?

  2. KANNAN says:

    As per the rule we can make 12 payments only per year in PPF account. I have opened my PPF account during December 2013. How to calculate the one year period. Is it December to Next November or January to December or March to February?( Normally interest calculated and paid 31st march) Please guide me. Send to my email. Thank you.

  3. lucky says:

    i had opened a ppf account in one sbi branch and then i got it transferred to other sbi branch because of my transfer.now the staff at new branch is asking me to fill ppf account opening form again.is it required??advise me please.thanks

    1. Hi lucky

      No , its a transfer case and hence you dont need to do that again , also tell them they are doing an illegal thing asking you to open TWO PPF account which is not permitted by law !

  4. Ritesh says:

    The PPF limit has been increased to 1.5L p.a.. Please update your blog.

    1. Thanks for sharing that Ritesh

  5. saswat says:

    Hi Manish,

    Thanks for the excellent post.

    I have a PPF account at Bangalore post office . Before I moved to Mumbai I approached the PO requesting for transfer of the account to Mumbai PO but was told theres no need to do so as in a few days time PPF accounts will be operated across post offices via a centralised system. This was six months back and the centralised system is still not been implemented so being in Mumbai I cannot deposit in my PPF any more.
    My question –
    * Can I get the PPF account transferred over to Mumbai with help of agents ?
    * My PPF account is only two years old with 10k deposited. Will it be better to open a new PPF at a SBI mumbai branch ? I can later on transfer the old account when I visit Bangalore next

    1. Anand says:

      You cannot open a new PPF account. Every person can open only one PPF account. You better transfer the account. Visit your nearest SBI branch and get the account transferred there with their help.

    2. As of now I dont think there is any way to deposit in PPF other than going to POST OFFICE .

  6. Ramesh J says:

    Thank you for the above valid inputs.
    And, as I told you, I opened it in one of near by post offices. Now, that post office is closed. I forgot the PPF account number 🙁 . How can I track?
    Is there any source to track my PPF account number though my full name or, PAN card number?

    1. The best thing you can now do is file a RTI to Post Office and you will get your answer on where its transferred ?

      1. Ramesh J says:

        RTI?
        Can you please share the procedure to file a RTI to Post Office

  7. Ramesh J says:

    I opened a post-office PPF account in 2008. Paid only 2 premiums. Is it valid?. If not, Can I activate it ? Please confirm.

    1. You can activate it again by paying a Rs 50 penalty for each year you have not paid along with minimum Rs 500 per year

  8. Ramesh J says:

    Can you please share if there any portal to find whether a particular Branch of SBI offers PPF or not?

    1. I dont think there is anything like that !

  9. Praween says:

    Dear Manish,

    I have a joint account with my wife in SBI. We both have separate PPF accounts. My ppf account was transferred from other SBI to current SBI. This account is now also linked with the above saving (jt) account. Thus I am able to access my PPF account thro’ net banking.
    I have opened a PPF account for my wife in the current SBI. The subscriptions to this PPF account can be done from the saving (jt) account thro’ net banking.
    But the problem is that that I cannot access my wife’s PPF account thro’ net banking whereas my PPF account can be access thro’ net banking.
    Bank is unable to link this PPF account with the saving (jt) account. Please tell how to do it?

    1. I think only one PPF account can be linked to saving bank . so thats why you cant link both of it !