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How to Open Public Provident Fund Account using SBI Net Banking

Here's how you can open a PPF account online using the net banking facility provided by SBI. Once the PPF account is opened, you can transfer funds from your linked SBI bank account, view balance and even view the PPF account statement.

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PPF (Public Provident Fund) is a popular long-term investment option available in India. PPF offers attractive interest rates with the safety of capital. It is an ideal investment scheme for investors with low-risk appetite. Returns earned from PPF account are fully exempted from income tax under Section 80C of the Income Tax Act, 1961. One can save tax on investment amount starting from Rs. 500 to a maximum of Rs. 1,50,000 in a financial year. Moreover, investors get facilities such as loan, withdrawals, and extension of PPF account. PPF is an excellent investment option for self-employed people and for those who belong to the unorganised sector since EPF/GPF is not available for them.

Following are some of the salient features of PPF.

  • Attractive interest rates on investment and the returns are fully exempted from tax
  • Excellent long-term investment option for 15 years
  • One can deposit an amount as low as Rs. 500 and a maximum of Rs. 1,50,000 in a financial year in PPF account
  • The deposit can be made in a maximum of 12 transactions per year
  • Loan facility is available between the 3rd and 6th financial year
  • One can avail partial withdrawal facility from the 7th year onwards
  • A PPF account can be extended for a five year block period after maturity

Opening PPF account with State Bank of India

Typically, a PPF account can be opened in any designated post office or a bank branch. However, if you are a customer of SBI Bank, opening a PPF account is extremely easy and can be done in a few minutes. SBI customers can now open a PPF account online using net banking facility at anytime and from anywhere. SBI has announced the launch of online services that enables customers to open a PPF account instantly in a paperless manner. The SBI bank customers have an option of opening a PPF account as per their convenience at anytime, anywhere, using the bank's online portal and mobile app.

Opening a PPF account online in SBI

Following is what you need as prerequisites to open an instant PPF account using SBI net banking.

  • You should hold a savings bank account with any branch of the State bank of India.
  • You should have activated internet banking/mobile banking for your bank account.
  • Your Aadhaar card number should be linked to your bank account.
  • Your mobile number, which is linked with your Aadhaar, should be active to receive OTP which is required to sign-in for opening a PPF account online.

Step by step process to open a PPF account using SBI net banking facility.

  • Step 1: Visit SBI online portal using www.onlinesbi.com link and log in with your id and password.
  • Step 2: Select “New PPF account” option.
  • Step 3: You will be redirected to the new page named “New PPF account” on the portal. Existing customer details such as name, customer identification number and PAN card number will be displayed on this page.
  • Step 4: Enter your bank account number from which you would like to invest in your PPF account. Enter your PAN number. Provide details on your bank branch. Once you enter the branch code and proceed to the next field, the system will automatically display the respective branch name.
  • Step 5: Verify your personal details, such as name, number, address, nomination, etc. Once verified, click on the "Proceed" button.
  • Step 6: Once you follow the steps mentioned above, your PPF account will be created in a few seconds, and the system will display your PPF account number. It is important to note that the statement of the transactions and annual statement of your PPF account is available on internet banking facility of your account.
  • Step 7: Print the account opening form from "Print PPF Online Application" tab and visit your bank branch with KYC documents and a passport-sized photograph within 30 days to complete KYC formalities.

Important things to consider while opening a PPF account.

  • According to Indian law, an individual is allowed to open only one Public Provident Fund account in his/her name.
  • The minimum deposit to be made in a PPF account is Rs. 100 as the initial deposit amount.
  • PPF account for a minor cannot be opened through this net banking facility. You need to visit the nearest branch of SBI to open a minor’s PPF account.
  • NRIs cannot open a PPF account.
  • You can visit the nearest branch of SBI to change nominee, if required.
  • Joint-account holders cannot open PPF account using net banking facility.
  • You need to visit the bank branch to receive the passbook for your PPF account.

The Final Word

PPF is a viable option to save and achieve life goals in the long run. And with SBI’s features and benefits, it becomes an extremely attractive savings instrument.

Recommended Read: Five Investment Options Other Than PPF That Offer Attractive Fixed Returns