Open PPF account online through SBI Internet Banking : PPF account is one of the most popular long term investment option by Government of India that offer safety of funds with attractive rate of interest that are fully exempt from tax. Public Provident Fund (PPF), a tax free saving scheme was introduced in 1968 by Finance Ministry to mobilize small savings by offering an investment with good return combined with income tax benefits.
Here in this article, let us know how to open Public Provident Fund (PPF) account in SBI bank through net banking. All banks does not provide online facility to open PPF account, transact and view our investments.
Important Points to know about Public Provident Fund (PPF)
Here are some important points to know about Public Provident Fund (PPF).
- Any Individual in their name as well as on behalf of a minor can open PPF account.
- The original tenure of a PPF account is 15 years which can be further extended by subscriber for 1 or more blocks of 5 years.
- A minimum sum of Rs. 500 upto a maximum of Rs. 150000/- per annum may be deposited in account. It can either be deposited in lump sum or in maximum 12 installments in a year.
- Rate of Interest on PPF deposit is determined by Central Government on Quarterly basis. At present, Interest rate is 7.60. Check updates on Interest rate here
- Investment made in PPF account is eligible for tax rebate under section 80C. And also interest income is totally exempt from tax.
- Nomination facility is also available in PPF account. You can nominate more than one person as your nominee and percentage amount for them.
How to open PPF account online in SBI bank through Net Banking ?
State Bank of India (SBI) does not offer 100 percent online facility to open PPF account. As you can submit only “Application for PPF account”. A reference number will be generated after your submission of application. Follow these steps :-
Step 1: Login to SBI Internet Banking Portal with your User Name and Password.
Step 2 : Under Request and Enquiries Tab, Click on “New PPF Account”. Your Name, Address, CIF and PAN details will be displayed on screen.
Step 3 : Enter your Branch Code where you want to open Public Provident Fund Account.
Step 4 : Nominee Details : Enter Nominee Names, DOB, percentage amount for each nominee. And Click on Submit Tab.
Step 5 : Now a reference number will be generated with following message.
“Your Application has been successfully submitted with the reference number : PFXXXXXXX
Please print the A/c Opening form from the tab ‘Print PPF Online Application’ and visit the branch with the KYC documents and a photograph within 30 days.
Please note that A/c opening form will be deleted after 30 days from the date of submission.”
Step 6 : Download “PPF Online Application Form”, take printout and visit the branch with KYC documents and a photograph within 30 days.