How to transfer your PPF account from the Post office to bank or from one bank to another bank?
Public provident fund (PPF) is one of the popular investment options that provides EEE Status. You would have opened a PPF account with a post office for tax savings. However, maintaining a post office PPF is a nightmare as you cannot go to post office every time you want to invest. You might have opened PPF in one bank, later moved to another city and using some other bank and finding difficult to deposit the amount in your PPF account. If you are one among such investor, this article would help you. How to transfer your PPF account from the Post office to another branch or to a bank? What is the step by step procedure to transfer your PPF account from one bank to another bank?
What is PPF Account?
You can skip this section if you are already aware of it.
Public Provident Fund (PPF) is a popular investment option in India. Here are the key features of PPF:
1) One can invest in PPFand get IT benefits up to Rs 1.5 Lakhs u/s 80c.
2) The interest rates are reset every quarter by Govt of India.
3) There is a lock-in period of 15 years for PPF account.
4) One can make partial withdrawals from PPF from the 5th year of opening the account.
5) One can enjoy EEE Status (Exempt, exempt and exempt) for PPF investments.
6) You cannot invest more than Rs 1.5 Lakhs per annum in PPF.
7) One can invest up to 12 transactions in a year.
Why investors want to transfer PPF account?
Here are some scenarios where investors might want to transfer their PPF account.
1) One would have opened Post office PPF account and finding difficulty to visit post office everytime they want to invest.
2) The PPF account holder would have transferred from one city to another city and finding difficult to make tax savings / or track their PPF.
3) The investor would have opened PPF in a bank and now transferred to another city due to change in job and finding difficult to maintain that bank account where the PPF account is opened.
4) Investor is facing poor service at the post office or bank where he opened a PPF account earlier.
Various scenarios where you can transfer your PPF account
Here are the scenarios that may arise:
1) Transfer PPF account from a post office to another branch.
2) Transfer PPF account from post office to the bank (e.g. to ICICI Bank, Axis Bank, HDFC Bank, SBI, Kotak etc.,)
3) Transfer PPF account from a bank to another bank.
Prerequisites to transfer your PPF account
You need to take care of following things before you opt for PPF transfer.
1) Carry PPF passbook + ensure no outstanding loan on your PPF account.
2) At new post office / bank where you want to transfer your PPF account, you need to submit KYC documents. Keep PAN card, Aadhaar card, photographs, etc., ready.
A) How to transfer your PPF account from Post office / Bank to another branch?
This process is very simple.
1) Visit the post office or bank where you have PPF account.
2) Fill the PPF account transfer request letter / application form (Form-A) and submit.
3) PPF account would be transferred within one week after providing the request.
No further documentation is required. You can use the existing PPF passbook for future transactions.
B) How to transfer your PPF account from the Post office to a bank?
Here is the process of transferring your PPF account from post office to a bank.
Step-1 – Visit post office / bank branch where you have your PPF account. You need to carry your PPF passbook.
Step-2 – Fill the transfer application form (which would be provided by you at the bank and might change from bank to bank)
Step-3 – They would verify the PPF transfer request letter, attach the original certified copy of the account, nomination form, specimen signature, DD or cheque for PPF outstanding in your account, PPF passbook etc., and send the documents to the bank where you want to transfer your PPF account based on the bank address provided by you.
Step-4 – New post office / bank (destination bank) would receive these documents and would intimate you.
Step-5 – You need to fill the fresh PPF account opening form (form-A), provide KYC documents, photographs, nomination form (Form E and Form F in case of change in nomination name) etc., at the new post office / new bank.
Step-6 – New PPF passbook would be issued to you along with indicating the PPF balance which it was transferred from old post office / bank.
The above transfer process might take anywhere between 2 weeks to 4 weeks time.
FAQs on transfer of PPF account
Here are some of the frequently asked questions on transfer of PPF account.
1) Can I transfer PPF account online?
The process is still not automated, hence you cannot provide PPF account transfer request letter / application form online. You need to visit the branch where you have PPF account and give necessary documents to transfer PPF account.
2) How can I transfer a PPF account from SBI to ICICI Bank?
You can approach SBI where you have PPF account and submit PPF transfer form. Once ICICI bank receives all PPF transfer documents from SBI they would intimate to you. You need to provide new PPF account opening form (Form-A) to ICICI Bank along with KYC documents and the nomination form (Form E). ICICI Bank would issue new PPF passbook to you. You can start investing / track PPF from there-on.
3) How to transfer a ppf account from one sbi branch to another sbi branch?
The process of transferring PPF from one SBI branch to another branch is simple. Visit your current SBI branch, fill the PPF transfer form by providing the new SBI branch details and submit. This transfer would happen in 1-7 days time.
4) How can I transfer a PPF account from SBI to HDFC Bank?
As indicated above, the process would remain same. You can approach SBI branch where you have PPF account and submit PPF transfer form indicating HDFC bank details including address. SBI would forward the documents to concerned HDFC bank branch. Once HDFC bank receives all PPF transfer documents from SBI they would intimate you. You need to provide new PPF account opening form (Form-A) at HDFC Bank along with fresh KYC documents + nomination form (Form E). HDFC Bank would issue new PPF passbook where you can start operating from thereon.
5) Can I give PPF account transfer request letter if I have a loan outstanding?
No. You need to clear all your PPF outstanding loan amount before you transfer PPF account.
6) Can I track my previous PPF account details after transfer?
Once you put a request for PPF transfer, these documents are transferred to new post office branch or new bank branch. You need to surrender your existing PPF passbook. In new PPF passbook, the previous PPF outstanding would be shown as “Credit balance transfer…..”. One should always keep the copy of old PPF passbook if they want to keep track of old transactions in PPF account.
7) Why I need to submit new PPF account opening form when I am transferring?
When you put the transfer, new bank / new post office branch would ask you to fill PPF account opening form. This is to ensure that new account is opened with them from that specific date.
8) Would PPF rules would change if I transfer PPF account?
None of the PPF rules would change if you transfer PPF account. Loan eligibility or premature withdrawal rules would apply from the original date of opening the PPF account.
9) Would my PPF account tenure would change due to change in PPF account?
No. It would continue to be 15 years from the original date of opening PPF account.
10) How the interest is calculated in case of PPF transfer?
PPF interest is paid on the last date of the financial year i.e. 31st March. Assume you have transferred PPF in the middle of the financial year say 30-Sep. The balance transferred to new post office or new bank would be only original balance as of that date without any interest. In the new account, the interest from 1st April to 31st March would be computed and credited on 31st March.
11) What happens to standing instructions given in the old bank account for PPF after transfer of PPF account?
One can give standing instructions to the bank to transfer a specific amount either monthly, quarterly or annually to PPF account. When you are transferring your PPF account, the bank would cancel such standing instructions. You may need to give similar standing instructions for PPF at new bank if you wish so.
12) What happens if a resident has transferred PPF and then became NRI during financial year?
New PPF rules indicate that NRI’s cannot open a PPF account. However, they can continue their PPF account and continue to subscribe in their existing PPF account on non repatriation basis.
13) How can I transfer a PPF account to Axis Bank?
Again the process would remain same. You can approach post office or bank where you have PPF account and submit PPF transfer form. Once Axis bank receives all PPF transfer documents from them, they would intimate to you. You need to provide new PPF a/c opening form (Form-A) to Axis Bank along with fresh KYC documents + nomination form (Form E). Axis Bank would issue new PPF passbook and would indicate the PPF transfer balance that would have come from previous bank or post office.
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