How to Open a PPF Account Online ?
Public Provident Fund, often referred to as PPF, is a scheme offered by the Central Indian government to its citizens for investment that not only gives guaranteed returns but also gives tax deductions in terms of rebate u/s 80C of the Income Tax Act, 1961. Any Indian resident can open a PPF account whether self-employed, salaried individual, businessman, professional among others. It can also be opened in the minor’s name under the capacity of guardian of the minor by submitting an application within the prescribed form.
In this article, we will discuss some significant aspects of the PPF account ad how you can open it online.
Any individual, being a resident of India is eligible to initiate a PPF account under his own name or on behalf of a minor. This indicates that a PPF account can also be opened by parents for their ward. However, there are a few restrictions which is as listed:
- An individual can only have 1 account under their name.
- Can’t be opened by NRIs
- A HUF (Hindu Undivided Family) can’t open a PPF account
- No joint account
Key Points of PPF Account
It came into the picture in the year 1968 under the PPF scheme, 1968.
Being a central government-back instrument, it is very secured when compared to other instruments.
It is believed to be one of the best debt options available for common investors.
The balance in the PPF account can not be attached under a court decree.
It offers EEE tax benefits and deductions to the investors which means the contributions made to this account are tax-free.
The choice to opt between flexible investment options of installments and lump sum.
Online PPF Account Opening Form
Many leading banks like Axis Bank, SBI, HDFC Bank, ICICI Bank among others allow investors to open a PPF account online from the comfort of their office or home. Under this model, investors do not have to visit the branch and fill up an application form. The application form can be filled out online and then be submitted to the bank along with the necessary required documents. The first deposit can also be paid online along with the registration application. Once the application is reviewed and verified by the bank, the PPF account will be opened.
Mandatory Requirements to Open a PPF Account Online
There are some preconditions that need to be complied with before opening a PPF account. These are as listed:
- Net Banking facility must be enabled.
- The investor’s Aadhaar card must be linked with his mobile number.
- The investor must have a savings bank account with the respective bank.
- The savings bank account must be linked to the Aadhaar Card number.
What Documents do you need to open a PPF Account ?
To open a PPF account online or offline, you will need the following documents:
- PAN Card
- Address proof
- Form for nominee declaration
- KYC documents
- Verification of Identity (Aadhaar, Voter ID, etc.)
- Passport size photographs
Process to Open a PPF Account Online
PPF Account can be opened online through banks. Every bank has a mostly similar process and we are going to discuss the whole process broadly. In case the bank requires an extra step need to be done, investors will have to do the needful.
The process is as listed:
Log in to your Net Banking Portal by entering the required credentials.
Click on the tab/button that allows you to open a new PPF account.
Choose the relevant options between a self-account and a minor account. (if the option is provided)
Start entering the required details like the nominee, bank account among others.
Certain details such as PAN details will be displayed. Verify them and then only move ahead.
After filling in the details, enter the amount that you want to be deposited in the PPF account.
Standing orders can also be set up at certain banks so that the money can be automatically deposited in a lump sum or at certain intervals.
Enter the transaction password or OTP that has been sent to your registered number
After doing the above process, the PPF account will be created. You can make a note of the account number on the screen for future reference. There may be a print option also available at your portal.
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