Public provident fund (PPF) is one of the most popular savings instruments for retirement planning as well as tax savings. Post offices and authorised banks offer the facility of PPF deposits. But many investors find depositing into their PPF accounts a hassle as many financial institutions don't offer the facility of online deposits.
An individual can open only one PPF account on his or her own behalf. So due to the hassles of depositing, many investors discontinue their PPF accounts, thus missing out on the benefits from investing in this savings instrument.
Such investors can however seek to transfer their PPF accounts given that many banks now offer online deposit facilities. The discontinued account can be activated by payment of minimum deposit of Rs.500 with default fee of Rs 50 for each defaulted year.
The benefit of transferring a PPF account is that it would be considered a continuing account. So for the purpose of early withdrawal or maturity the same norms would be applicable as that of the original PPF account.
For transferring PPF account from one authorised bank or post office to another, the investor has to submit a PPF transfer request form in the bank/post office where original PPF account is held.
That bank/post office will send the original documents such as a certified copy of the account, the account opening application, nomination form, specimen signature etc. along with cheque/DD of the outstanding balance in the PPF account to the specified bank/post office where the investor wants to shift the account.
Once the PPF transfer documents are received at the new bank branch/post office, the customer is required to submit fresh PPF account opening form, nomination form (in case of change of nomination), along with the original PPF passbook. The customer also has to submit a fresh set of KYC documents.
An individual can open only one PPF account on his or her own behalf. So due to the hassles of depositing, many investors discontinue their PPF accounts, thus missing out on the benefits from investing in this savings instrument.
Such investors can however seek to transfer their PPF accounts given that many banks now offer online deposit facilities. The discontinued account can be activated by payment of minimum deposit of Rs.500 with default fee of Rs 50 for each defaulted year.
The benefit of transferring a PPF account is that it would be considered a continuing account. So for the purpose of early withdrawal or maturity the same norms would be applicable as that of the original PPF account.
For transferring PPF account from one authorised bank or post office to another, the investor has to submit a PPF transfer request form in the bank/post office where original PPF account is held.
That bank/post office will send the original documents such as a certified copy of the account, the account opening application, nomination form, specimen signature etc. along with cheque/DD of the outstanding balance in the PPF account to the specified bank/post office where the investor wants to shift the account.
Once the PPF transfer documents are received at the new bank branch/post office, the customer is required to submit fresh PPF account opening form, nomination form (in case of change of nomination), along with the original PPF passbook. The customer also has to submit a fresh set of KYC documents.
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