How to Make Online Payment to Your PPF Account?
By Anupama Deshpande | May 27, 2018

Public Provident Fund (PPF) is one of the most popular long-term small savings investment schemes in India. It encourages regular and systematic saving. PPF Account can be opened by resident Indian Individuals. You need to be physical present for PPF account opening in a post office whereas you can open PPF account online in case of banks. Investors can invest minimum Rs. 500 to maximum Rs. 1,50,000 in one financial year. The amount can be deposited in lump sum or in a maximum of 12 installments per year. The interest earned on the PPF subscription is compounded annually. The investors can get the facilities such as income tax rebate, loan, partial withdrawal and extension of account.

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• Public Provident Fund (PPF) is a government backed scheme
• PPF offers better returns
• PPF Account can be opened with minimum of Rs. 500 only
• PPF provides guaranteed fixed interest. Presently, it is 7.60% per annum with effect from 01.01.2018
• PPF enjoys EEE or exempt, exempt, exempt status which means that the contribution made in PPF, interest earned on PPF Account and the maturity proceeds of PPF Account, all are totally income tax free
• Loan against PPF facility is available. Loan can be availed between 3rd to 6th financial year
• Partial withdrawal is allowed under PPF which can be availed from 7th financial year onwards
• PPF Account can be closed prematurely but only after the account has completed five financial years and under specific conditions like expenditure towards medical treatment and higher education
• You can continue PPF Account after the 15 year period (i.e. after maturity) for any period in a block of 5 years

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Online transfer of funds from your bank account to your PPF account can be done whether you have your PPF account and bank account in the same bank or whether you have your bank account and PPF account in different banks. Following is the step by step process for online fund transfer from your bank account to your PPF account:

1. Login to your internet banking with your login and password
2. Click on Add third party payee
3. Add your PPF Account with bank as a beneficiary into your online banking module
4. Select the bank and its branch in which your PPF account is maintained
5. Enter payee name, payee city, PPF account number and IFSC Code
6. Click on "Submit" button
7. You must make sure that the payee name and the PPF account number should be exactly same as mentioned in your PPF account
8. You will get 'payee confirmation' message and OTP will be sent to your mobile
9. Confirm your payee by entering the OTP
10. After this, your PPF Account will be added as a third party account
11. Now you can transfer funds from your bank account to your PPF account through online fund transfer

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1. You can give standing instructions to your bank to transfer money from your bank account to PPF Account
2. You can submit an ECS Mandate to transfer money from a bank account to PPF account

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• You can maintain your PPF account without visiting your bank branch where you are having your PPF Account
• This process is hassle free
• You can transfer the amount from anywhere, anytime
• You can transfer the amount in as many instalments (maximum 12 in one financial year) as you want

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