Public Provident Fund (PPF) programme is a long-term investment plan backed by the Indian Government. It offers safety with attractive interest. Its returns are fully exempted from tax. Investors are allowed to invest a minimum of Rs. 500 to a maximum of Rs. 1,50,000 in a single financial year. Investors can get loan facilities, withdrawal, and extension of account. In this article, we are going to tell you about to transfer PPF account with ease.
An investor can invest in PPF through banks and the post office. In banks one can transfer funds online, but not in the post office. It is pretty difficult to visit a post office frequently when you want to invest. It can become a taxing affair.
This could lead to an investor to transfer PPF account from post office to a bank. Sometimes even when you can’t visit the bank, you would want to transfer PPF account. It could be due to relocation or poor bank services etc. The post office and bank PPF customers can transfer their account from one bank or another. It can be transferred from one post office branch to another or rather to a bank.
Transfer PPF Account
Within The Same Bank Branch Or Post Office:
If a customer wishes to transfer PPF account in the same bank or post office, then it is pretty easy. He or she needs to visit the existing branch. Then the person needs to submit an application to change the branch.
The process will take one to seven days. The duration depends on the bank or post office branch.
From Post Office To Bank (And Vice-Versa) Or One Bank To Another
To transfer PPF account from a post office to bank or vice-versa or one bank to another), here are the following steps to be followed to transfer PPF account:
- The customer needs to visit the existing bank branch/post office.
- They will need to carry along their PPF passbook.
- The person will have to submit a transfer application request.
- On the application form, one needs to mention their full address of the post office/ bank branch where they want to transfer the account.
- When the transfer request is received, the existing branch starts the process. The person needs to collect the receipt.
- Then the existing bank branch sends the requisite documents to the new branch (certified copy of the account, nomination form, original account opening application form, signature specimen, existing passbook and a cheque (or demand draft) of the balance outstanding).
- When the new post office/bank branch receives the documents, the officials will confidential the investor about the documents’ receipt.
- In the new branch, the customer will have to submit a fresh account opening form, original passbook, and change of nomination form.
- The customer will have to carry PAN card, photographs, and address proof. This is needed as one might need to under a KYC process again.
- The transfer will take at least one month.
The transferring of the account needs a new KYC verification with filing up of forms. The transfer is stated as a continuing account. This doesn’t affect any benefits such as loan facility etc. The transfer process leads to issuing of a new passbook. Outstanding balance is shown as a credit of balance transfer. A customer also should carry a photocopied version of their old passbook for old transactions’ record.