How to Open PPF Account?
To apply for the PPF Provident Fund ( PPF ) Scheme, 1968, you are required to fill up Form A and submit it at any post office/ a bank along with KYC documents. You are free to open a PPF account in any post office/bank which are authorised to open this account. Though opening a PPF account is very simple but if you still face any problem, the officials of respective post office/bank would help you with the account opening process where you want to open your account.
It is always better to open your PPF account in that bank where you already have your savings account in order to save the additional hassles. For your convenience, you can also apply for opening a PPF account online.
Documents required for opening a PPF account
Following documents are required to open a PPF account:
- Account opening form (Form A)
- Nomination form (Form E) (not mandatory but is advisable to nominate in order to avoid conflict in the event of death)
- Cheque for investment
- Passport size photograph
- Identity proof (anyone) - Passport, PAN Card, Aadhar Card, Driving License, Voter's ID, Employer's letter, Utility Bill eg Telephone bill/ Electricity bill, Rental/Lease Agreement, Bank Account Statements, Ration Card etc.
- Date of birth proof (anyone) - Birth certificate, School Mark Sheet etc. (in case of investing in minor's name)
Eligibility for PPF Account
Public Provident Fund (PPF) account can be opened by:
- Resident Indian individual
- A resident Indian individual on behalf of a minor child
The points to remember are:
- Only one account can be opened by an individual in his/her own name. If a second account has been opened by mistake, it must immediately be brought to the notice of the bank manager and got closed. However, a person can have two PPF accounts one his own and other one as a guardian (in the name of his son or daughter who is a minor). Grandparents are eligible to open account in the name of their grand son or grand daughter only if the child's parents are no more.
- PPF account cannot be opened in joint names
Who can not open PPF account?
Following cannot open PPF account:
- Hindu Undivided Family (HUF)- It has been restricted w.e.f. May 13, 2005, but the accounts opened by HUFs before May 13, 2005 can be continued until their maturity but extension is not allowed.
- Non Resident Indians (NRIs)- There is an exception here that if a person has opened a PPF account as a resident Indian but afterwards left India and obtained a non-resident status, then he can continue to maintain his account until its maturity i.e. till 15 years but he cannot extend it further being an NRI.
- Trust cannot open a PPF account.
- Foreign nationals cannot open a PPF account.
Minimum and Maximum Subscriptions to a PPF Account
Minimum Subscription: Rs.500/- can be invested in lump sum or in 12 instalments in each financial year
Maximum Subscription: Rs.1, 50,000/- can be invested in lump sum or in 12 instalments in each financial year
The minimum number of times you have to deposit money to your account is 1 and the maximum is 12.
PPF Nomination Rules
How Many Nominees can be Appointed?
PPF Account Nomination can be made in favour of one or more persons. Nominations cannot be made for minor's PPF account.
If PPF account holder has made single nominee then he/ she will get 100% share. In case, more than 1 person have been made nominees, then the PPF account holder needs to declare the percentage share that each nominee will get.
Who can be Appointed a Nominee?
Any person such as parents, spouse, relatives, children, friends, etc. of the PPF account holder can be appointed nominee/s.
Which Form is Used for PPF Nomination?
Form E is used to appoint a nominee to the PPF account. This form needs to be signed by the PPF account holder and two witnesses. Signature of the nominee/s is/are not required.
When to Appoint a Nominee?
Nominee can be appointed at the time of opening of PPF account. However, nominee/s can also be appointed at any time during the tenure of the PPF account. The form has to be submitted at the same bank/post office branch where the PPF account is opened.
Can Nomination be Changed?
PPF account holder can change, cancel or alter the nomination any time during the tenure of the PPF account. These changes can be done by filling up Form F.