Public Provident Fund (PPF Account)

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Public Provident Fund
(PPF Account)

Overview

The Government of India has authorised IDBI Bank to receive subscriptions to PPF Accounts through its All branches across India.

Salient Features of the Scheme
ELIGIBILTY

Individuals in their own name as well as on behalf of a minors can open the account at any designated Branch. As per extant rules, opening of PPF accounts in the name of NRIs & Hindu Undivided Family is not permitted.

TRANSFER OF ACCOUNT

The account can be transferred from other banks or Post Offices and vice versa upon request by the subscriber, free of charges.

SUBSCRIPTION LIMITS

Minimum of Rs.500/- and a maximum of Rs.1,50,000/- per financial year may be deposited. Any amount in excess of Rs.1,50,000/- in a financial year shall neither earn any interest nor will be eligible for rebate under the Income Tax Act. The amount can be deposited in lump sum or in a maximum of 12 instalments per year.

Maturity Period

15 years. Extendable for 1 or more blocks of 5 years each after maturity.

RATE OF INTEREST

As declared by Government of India time to time.

TAX BENEFITS

Income Tax benefits are available under Sec 80C of the IT Act. Interest income is also totally exempt from Income Tax. Amount outstanding to the credit is fully exempt from Wealth Tax.

NOMINATION

Nomination facility is available in the name of one or more persons.

LOANS

A depositor can avail loan against balance in the PPF account in the third financial year. Rate of Interest for Loan will be 2% above the rate of interest on PPF.

Please click on below links for list of authorised branches, FAQs and FORMS.

Frequently Asked Questions on PPF
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FORM A
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FORM B
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FORM E
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