PPF Transfer

POSTED BY Sathya AM ON January 1, 2013 3:44 pm COMMENTS (4)

Hello Manish,
Thanks for a detailed article on PPF A/C Transfer. I should have read this before getting my A/C transferred to SBI (from Syndicate Bank). However, the transfer has already happened on 8/OCT/2012.
Now, my question is regarding the Interest amount. SBI says, Interest till 31/OCT should be paid by Syndicate Bank. Can you please give me reference of Rules that clarifies who pays interest? Thanks once again. -Sathya.

4 replies on this article “PPF Transfer”

  1. As Manish says in the article, only way is to file a RTI. There should no loss of interest that much is certain

  2. Sathya AM says:

    Thanks Guys for your Answers. To be more clear about my problem:
    Initially Syndicate Bank Didn’t add any interest. That is to say whatever interest was added on 31/ Mar/2012 and my contributions in this financial year was transferred thru a DD to SBI. But SBI asked me to seek for Interest till 31/Oct and they said they will add interest only from Nov. I did go back to Synd Bank and they sent thru another DD for the interest amount till 31/Sep. Now I’m at loss of one month’s Interest and don’t know who should pay it off! Is there a specific PPF rule for such transfer cases? What SBI says Synd Bank doesn’t agree.
    If any one can suggest what to do next, would be of great help. Thanks -Sathya.

  3. Sanay is correct however unfortunately if you read the comments here

    https://www.jagoinvestor.com/2012/07/transfer-ppf-account-from-post-office-to-sbi-bank.html

    many seem to have lost some months interest during transit

    Do follow it up with Syndicate bank to ensure you get the right interest.

    For the sake of others who are thinking of transferring: Best time to transfer an account is in the 1st week of April. interest will get credited on march 31st and then the transfer will be smooth.

  4. Sanjay says:

    As per PPF rules 1968, See below para
    8. Interest – Interest at the rate , notified by the Central Government in
    official gazette from time to time, shall be allowed for calendar month on the
    lowest balance at credit of an account between the close of the fifth day and
    the end of the month and shall be credited to the account at the end of each
    year.
    Provided that where the interest to be credited contains a part of a rupee.
    Then, if such part is fifty paise or more, it shall be increased to one complete
    rupee, and if such part is less than fifty paise, it shall be ignored.

    As your Txfer happened on 8 Oct, SBI is correct in stating that Syndicate Bank should pay the Interest.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today