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Public Provident Fund (PPF) is a long-term, government-backed small savings scheme. Public Provident Fund  is an ideal vehicle for long term investment in debt category, an important retirement saving tool for individuals, more so for those who are not salaried employees Our post Understanding Public Provident Fund, PPF explains in detail about the  investment amount, interest rate, power of compounding, who can open, where can one open etc. In this article, we shall only focus on how to pay the PPF amount in different scenarios such as in Post Office, State Bank of India and related banks and online.

Overview of Public Provident Fund

PPF comes under the PUBLIC PROVIDENT FUND ACT, 2019. On 12th December 2019, the Government of India notified the Public Provident Fund (PPF) Scheme, 2019 Features of PPF are as follows :

  • PPF works on a financial year basis (April 1st – March 31st).
  • The interest rate is 7.1% (Apr 2020)
  • You need to deposit a minimum of Rs. 500 per year in a PPF account.
  • The maximum amount which you can deposit in a PPF account is Rs. 1,50,000. (The earlier limit was Rs 70,000, it was increased to 1 lakh from 1.12.2011 , then to 1.5 lakhs in 2015).  If you have opened a minor account for which you are guardian then the maximum you can deposit in both the accounts together is 1.5 lakhs. This change has been brought in Dec 2019. Explained below and Details are discussed in Public Provident Fund Scheme, 2019, New PPF Rules
  • Deposit amounts should be in multiples of Rs. 50.
  • You can deposit lump sum or multiple instalments. Amount of each instalment in a month and also in different years can vary.
    • Ex: In a year one can remit Rs 500 in the month of Apr, then 2000 in the month of July, 5000 in the month of Mar. In the next year, one can deposit Rs 5000 in the month of Jun.
  • PPF interest is calculated monthly on the lowest balance between the end of the 5th day and last day of the month, however, the total interest in the year is added back to PPF only at the year-end. So if you don’t deposit on/before the 5th of a month, you don’t earn interest for that month. It is recommended that you invest in PPF before 5 Apr to get maximum benefit.
  • Amounts can be deposited online, in cash, cheque or via demand draft. If you are depositing a cheque or demand draft, then the date of the deposit that will appear in your PPF account will be the date of cheque clearance and not the day you present the cheque. Say if you deposit the cheque on the 1st of the month but it fails to clear by the 5th for whatever reasons, you will lose out whole month’s interest
  • For remitting in PPF account by cash or cheque or demand draft one needs to fill Form B or Challan B. One needs to fill the same information three times i.e triplet
  • Now one can pay through internet banking using Fund Transfer or Third Party Transfer if PPF account is in the bank.

How to Deposit Online in PPF

One can transfer money online from saving bank account to PPF account using Funds Transfer or Third Party Fund Transfer. This enables one to transfer funds from one’s accounts to other accounts in the same branch or other branches or a different bank. To make funds transfer, one should be an active Internet Banking user with transaction rights.

  • Transfer funds within your own accounts called as Fund Transfer.
  • Transfer funds to a third-party account held in the same bank. It which is used to transfer funds to another account that belongs to somebody else but in the same bank (not necessary to be in the same branch as yours) which is called Third Party Transfer.
  • Make an Interbank funds transfer to any account held in any bank called as Interbank Transfer to transfer money to anyone having an account in any bank (or branch) in India. Interbank transfer is usually done through NEFT transfer or RTGS transfer.

Usually, Third Party Transfer is used for transferring funds to a third-party account in the same bank and Inter bank transfer. Our article Third Party Fund Transfer : NEFT,RTGS discusses it in detail.

How to deposit when PPF Account is in SBI and Saving Account is also in SBI (Same branch)

If you have your PPF account and savings account at same SBI branch, then you can see your PPF account already linked with your Bank account in NetBanking and you can transfer the money. You can transfer money through Funds Transfer

If you don’t see your PPF account linked, submit the letter to SBI bank by visiting the bank to link the account.

Steps are:

  1. Log on to Personal Banking of SBI’s Internet Banking site with your details (user id, password)
  2. Select Payments/Transfers and then Funds Transfer : Now you can see your accounts associated with your userid.
  3. Select the account from which you wish to transfer funds and the account into which the amount is to be transferred or credited.
  4. Enter the amount and remarks. Remarks can be seen as description for this transaction in your bank account statement. Helps in recalling.
  5. Confirm the transaction. On confirming the transaction, you will be displayed a confirmation page with the details of the transaction and the option to submit or cancel the fund’s transfer request
  6. On submitting A reference number will be generated for the transaction.

Pictures from  SBI PPF Online Transfer for the process (Click on image to enlarge)

PPF account in SBI linked to bank account in SBI

Linked PPF account

Select Fund Transfer from SBI account to PPF account in SBI

Select Account

Select Account for Fund Transfer from SBI account to PPF account in SBI

Select payee account

How to deposit when PPF Account is in SBI and Saving Account is also in SBI (different branch)

In case you have your PPF account and savings account with SBI but in different branches, then you should call Customer care or visit branch and ask them to link the accounts. Once linked you can use Fund Transfer. In the meantime, you can transfer funds using the option of adding  Third Party Beneficiary. 

How to deposit when PPF Account is in SBI and Saving Account is in another bank

  • Logon to your Savings account netbanking (ICICI/ HDFC/ any other bank)
  • Add your PPF account as Third party Beneficiary so that you can transfer funds to it
    • a) Enter Payee Name – Same as Name in PPF Account
    • b) Select SBI branch where PPF account is maintained
    • Enter Payee Account number – same as your PPF Account number

Once you have completed these steps you can see your PPF account as the 3rd party account where you can transfer the money just like you send it to any account.
Images from JagoInvestor’s Online transfer to your
Public Provident Fund (PPF) account
 (Click on image to enlarge)

Transfer from From ICICI bank to PPF account in SBI

Select Bank

Transfer of money from PPF account in SBI to ICICI bank

Add Payee

Transfer from ICICI bank to SBI PPF account -ppf account number

Add PPF Account Number

How to deposit in PPF account in ICICI Bank and Saving bank account also in ICICI

Through ICICI Bank Internet banking, you can:

  • View your PPF account under your ‘My Accounts’ section in the logged in section
  • Transfer funds from linked Savings Bank Account online
  • View and print mini and detailed statement online

How to deposit in PPF account in HDFC Bank and Saving bank account also in HDFC Bank

Log in to HDFC Bank Internet banking, you can:

  • View your PPF account under your  Transfer to your own Accounts
  • Transfer funds from linked Savings Bank Account online

How to deposit in PPF in Other Banks

IDBI Bank : PPF account holders of IDBI Bank have the benefit of accessing their PPF account online. Through Internet banking, they can view their PPF account details, print statement of accounts and also make subscription to PPF by way of online transfer of funds from the savings bank accounts.

How to Deposit in PPF  by cash or cheque in Post office

Steps to pay using Cash/Cheque in Post Office

  • Fill Form B (pdf format view or download here) shown below with appropriate details.
  • If paying by cheque , cheque should be in the name of  Postmaster, <name of Post office>, (PPF Account Number).  Remember that date of deposit that will appear in your PPF account will be the date of cheque clearance and not the day you present the cheque
  • Get the passbook updated (which may take a week if paying by cheque)

If you opened your PPF account through agent in Post office, your agent may not provide remittance into PPF account and you might have do it yourself.As from 1-Dec-2011 payment of commission to agents on Public Provident Fund Scheme (1%) and Senior Citizens Savings Scheme (0.5%) was discontinued.(Ref)

 Deposit in PPF by cash or cheque in Bank

Steps to pay using Cash/Cheque in Bank (SBI, ICICIBank, IDBI) same as in Post Office (except name on the cheque)

  • Fill Form B (pdf format view or download here) shown above  with appropriate details. Fill the Date, Account No, name of subscriber, address,details of cash or cheque number.
  • If paying by cheque , cheque should be in the name of  <PPF account holder name> – PPF Account Number.  Remember that date of deposit that will appear in your PPF account will be the date of cheque clearance and not the day you present the cheque
  • Get the passbook updated (which may take a week if paying by cheque)

New PPF Rules 2019

On 12th December 2019, the Government of India notified the Public Provident Fund (PPF) Scheme, 2019 under Section 3A of the Government Saving Promotion Act, 1873 thereby replacing the Public Provident Fund (PPF) Scheme, 1968. The new PPF rules as per the notification are in Public Provident Fund Scheme, 2019, New PPF Rules . The image below shows the difference between PPF 2019 and PPF 1968.

Changes in the PPF from Dec 2019

Changes in the PPF from Dec 2019

Related Articles

In this article we have shown different ways to remit into PPF account. How do you pay into your PPF account, lump sum or installments, use internet banking or go to the bank to deposit into PPF account.

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