SBI Public Provident Fund Account: From Withdrawal to Amount Transfer - 10 queries answered here

SBI PPF Account: Public Provident Fund (PPF) is one of the most popular savings schemes today. It was introduced in 1968 to mobilize the small savings of individuals. Currently, PPF offers 8% interest, which is compounded annually. PPF not only offers a safe investment avenue but also several income tax benefits. You can open the  Public Provident Fund (PPF) with post offices and also several authorised banks, including the largest lender State Bank of India (SBI). On its official website, SBI answers some of the most frequently asked queries about the PPF account. Take a look at what the bank says: 

How many PPF accounts can an individual open in his/her name?

An individual can open only one PPF account in his/her name. Another account can be opened on behalf of a minor. 

What are the documents required to open the SBI Public Provident Account?

The documents required to open SBI Public Provident Fund Account include:

- PPF account opening form (Form A)
 -Nomination form
-  A passport size photograph
- A copy of PAN card/Form 60-61
- ID proof 
- Residence proof as per Bank's KYC norms

What happens to the PPF account if an investor fails to deposit in one or more financial years?

In this case, a penalty of Rs 50 is levied per year of default when the PPF account holder doesn't deposit the minimum amount of Rs 500 on the completion of the financial year. 

How much time does it take for the PPF account to mature?

PPF account matures after the completion of 15 years from the end of the year in which the account is opened, says SBI website. 

Can an investor close the PPF account before maturity?

PPF ( Amendment) scheme 2016 says the premature payment is allowed "only after the account or the account of the minor account holder of whom he/she is the guardian has completed five financial years". This allowed only when the amount is required for treatment of serious ailments or life-threatening diseases of the account holder, spouse or dependent children or parents. Premature payment is also allowed when the amount is required for higher education of the account holder or minor account holder. 

How to withdraw funds from the SBI Public Provident Fund Account?

Public Provident Fund Account holders can make withdrawal every year from the 7th financial year onwards. The amount that can be withdrawn should not exceed 50% of the balance at the end of the fourth year immediately preceding the year of the withdrawal or the amount at the end of the preceding year. Only the lower of the two can be withdrawn. 

How to get a loan on the deposits in SBI Public Provident Fund Account?

Loan facility is available between the third financial year to the sixth financial year. 

What role does an SBI branch play vis-a-vis Public Provident Fund Account?

SBI official website says, "Once transfer in documents are received at SBI branch, customers are required to submit fresh PPF account opening form (Form A) and Nomination form (Form E/ Form F in case of change of nomination), along with their original passbook . Also customer is required to submit a fresh set of KYC documents."

How to access SBI Public Provident Fund Account details online?

You can access details of your PPF account online through SBI net banking facility. There is also a provision of setting Standing Instructions for periodical credits. 

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What will happen to the PPF account if the status of the investor changes to Non-resident Indian from Resident Indian after the opening of the account?

SBI website says that NRIs can continue to hold the PPF account. Resident status change will not affect the PPF account as per a government notification.