How to Open a PPF Account Online?

The Public Provident Fund (PPF) account is a very popular, long-term investment and savings product. Individuals investing in the account can avail tax benefits as well. A PPF account can be opened at post offices as well as at banks. In order to make the process of opening an account easy, individuals can now open a PPF account online.

However, individuals are allowed to open a PPF account online only at banks. It is not possible to open a PPF account online at post offices. While at a few banks, one can open a partial online account and a complete online account in some banks.

Features of PPF account

Before we get into the details of the procedure of opening a PPF account online, let us understand the features of a PPF account. The features are listed below:

• The minimum and maximum deposit that can be made in a year are Rs.500 and Rs.1.5 lakh, respectively.
• The deposits can be made in a lump-sum or by a maximum of 12 installments in a year.
• The duration of the scheme is 15 years.
• Under Section 80C of the Income Tax Act, tax benefits up to Rs.1.5 lakh is provided for any contributions towards the account.
• Individuals will be able to access various PPF details as well as view the statement by using the netbanking facility.
• Currently, PPF interest rate that is offered by all banks is 7.1%.
• After a certain duration, loans can be availed against the PPF account.

Eligibility to open a PPF account

The eligibility criteria to open a PPF account are mentioned below:

• Only Indian residents are allowed to open a PPF account.
• In case a Non-Resident Indian (NRI) has opened an account while he/she was an Indian resident, the account can be continued for 15 years. However, NRIs do not have the option of extending the account.
• Hindu Undivided Families (HUFs) are not allowed to open a PPF account.
• An individual can have only one account under his/her name.
• Individuals can open a PPF account on behalf of a minor as well.

Mandatory requirements to open a PPF account online

The mandatory conditions that must be followed to open a PPF account online are mentioned below:

• The individual must have a savings account with the respective bank.
• Netbanking facility must be activated.
• The Aadhaar number must be linked to the savings account.
• The individual’s mobile number must be linked to the Aadhaar.

Procedure to open a PPF account online

The step-by-step procedure to open a PPF account online is mentioned below:

• First, you must login to your net banking portal.
• Next, click on the option that allows you to open a new PPF account.
• Certain banks will have an option to choose between a self-account and a minor account. Choose the relevant option.
• You can start creating the PPF account by entering the nominee details, bank details, etc. Certain details such as your Permanent Account Number (PAN) will be displayed. You must verify that all the details displayed on the screen are correct.
• Once the details have been entered, you must enter the amount that must be deposited in the PPF account.
• Standing instructions can also be set-up at certain banks so that the money can be automatically deposited in intervals or a lump-sum.
• Depending on the bank, the next step would be to enter the OTP that has been sent to your registered mobile number or the transaction password.
• Once the above step is complete, the PPF account will be created. You can make a note of the account number that is displayed on the screen for reference purposes.
• However, for certain banks, you must take a print-out of the details that have been entered along with the reference number and submit it at the bank with the Know Your Customer (KYC) details.

Process to open a partial account

Under this process, you will be able to create the application form online. Once the process to create an application form is complete, you must take a print-out of the form and submit it at the bank branch along with your KYC documents and signature.