Not many people are aware that they can transfer PPF account from Post Office to Bank and vice versa. In fact, you can transfer PPF from one bank to another. In short, there is complete portability of Public Provident Fund (PPF) between RBI Authorized Banks and Post Office. In my post on Public Provident Fund (PPF), i highlighted the benefits of PPF Account. PPF is the only tax savings tool, which is popular among people who are investing only for retirement planning. They don’t avail tax benefits u/s 80C but open PPF account because of inherent features and high interest rate. Though process to transfer PPF is a bit hassle but it is necessitated if the account holder is facing issues in operating the PPF account.
I opened my PPF account through one of the acquaintance. She was taking care of my mother’s post office investments. At that time, all investments were through personal relations only. PPF is the only investment which is cherished else one of my father’s friend advised me to buy Money Back Policies, Which i regret. Anyways, can’t do much in this regard. Though i am a big fan of postal services but only for logistics. For an investment, i wrote a post Why you should not invest in Post Office Savings Schemes. Most of the reasons highlighted by me in the post were responsible for my decision to transfer PPF account from Post office to the bank. Besides these reasons, the prime concern was non-availability of the online transfer facility. Can’t imagine standing in a queue for half day for PPF deposit. Through this post, i thought of sharing my experience to transfer PPF from Post Office to a Bank with my readers.
Process to Transfer PPF
1. Select Right Bank: Once bitten, Twice shy was the feeling when i started searching for the bank to transfer PPF from a post office. I found out that currently following 28 banks are offering PPF account. Please note that not all branches of the banks are authorised to offer PPF account except SBI. At the same time, almost all the branches of SBI offer PPF account.
State Bank of India
State Bank of Patiala
State Bank of Bikaner & Jaipur
State Bank of Travancore
State Bank of Hyderabad
State Bank of Mysore
Andhra Bank
Allahabad Bank
Bank of Baroda
Bank of India
Punjab & Sind Bank
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Punjab National Bank
Syndicate Bank
UCO Bank
Oriental Bank of Commerce
Union Bank of India
United Bank of India
Vijaya Bank
Axis Bank Ltd.
ICICI Bank Ltd.
IDBI Bank Ltd.
I visited branches of 8 banks which were near to my place but was not convinced. None of the branches was keen to process PPF transfer request as it is hassle for them. As i already have an account with ICICI Bank, therefore, my final shortlist was ICICI Bank and SBI. To be very honest with you SBI branches i visited refused that “Particular branch accept PPF transfer request”. They accepted the fact that they can open PPF account but can’t transfer PPF from Post Office :). We can’t blame employees, but SBI branches are overburdened. Finally, i decided and zeroed in on SBI because of following factors
(i) No of Branches: In my city ICICI Bank PPF branch is far from my place. In each city, you could find only a few branches. I thought of operational hassle to get the statement as it is issued by only PPF authorised branch. In case of SBI, i can get my passbook updated from nearest branch.
(ii) SBI issue Passbook but ICICI Bank only issue PPF Statement. Though technically it doesn’t make any difference but my past employers always insisted on PPF Passbook to pass tax benefit u/s 80C. ICICI Bank does not issue passbook for PPF.
(iii) It is advisable to open the savings account and PPF account in same branch to link each other. In case of SBI, by doing so you can deposit fixed amount on the monthly basis similar to RD. This is feasible through Auto Debit / ECS facility. Whereas it is not feasible in ICICI Bank. In the same branch, PPF Account can be added as a Beneficiary Account linked to the SBI savings account.
2. Open Savings Account in the Bank Branch where you would like to transfer PPF Account
As i mentioned that Savings account and PPF account should be in the same branch of SBI. Therefore, it is advisable to open the Savings Account before you transfer PPF account. It is convenient to link PPF account with existing Savings account instead of 1st transfer PPF account and then open Savings account to link the same. Don’t forget to get the passbook issued as it is required at later stages.
3. Update PPF Passbook:
After you finalized the bank, corresponding branch and opened Savings Account. Next step is to visit post office & get your PPF account passbook updated. After passbook update, you can inform post office that you would like to transfer PPF account to the bank.
4. Permission of Postmaster:
There is a strange rule that you have to take personally meet Postmaster before placing the request to transfer PPF account. It reminded me of my school days when for a change of section, Principal’s permission was required. The postmaster was quite convincing and told me that there is no rule to transfer PPF from Post office to Bank. I returned empty handed and thought my research to select bank & open savings account went waste.
I checked with my mom’s friend who opened my account, She is now postmaster :). She told me that under Rule 153 on Page no 154 of Chapter IV of Post Office Saving Bank Account Manual vol. 1, if i check second schedule then my problem will be resolved. Ufff, I got a feeling that i am studying some advanced law book. She shared a link with me, Click Here to check. Voila, I took print and next day showed to Postmaster. He gave me expression as if i handed over bail order of his biggest enemy. He granted permission to transfer PPF account.
5. Fill Form SB 10(B):
One of the post office employee handed over form SB10(B) to fill. This form can be downloaded online, Click Here to download. Along with filled form, you may need following documents to transfer PPF account
(a) Application to transfer PPF account from Post office to SBI / any other Bank.
(b) Original Passbook. Take a photocopy of same before submitting the original else you will not have any record of past transactions.
(c) Originals and Copy of Identity and Address Proof like PAN and Passport / Driving Licnese etc for verification
(d) A copy of Passbook of SBI Saving’s Account. It will help to automatically link transferred PPF account with SBI Savings Account.
Submit all these documents to Postmaster. He may call you next day / after few days for verification. Though it can be done same day also.
6. Verification by Postmaster
You will be asked to sign in front of postmaster and he will verify your signature and other documents to transfer PPF account.
7. Closure of PPF account and Transfer of PPF Balance
After the verification, your PPF account with Post office will be closed. Post office employee informed me that they will send the cheque / DD of my PPF account proceeds to SBI. They will also dispatch all other documents like nomination form, account opening form, certified signature etc to SBI Bank Branch as per details in passbook of my SBI savings account within 10 working days. I will receive intimation from post office regarding the same.
Please note that your PPF account number will remain the same even after you transfer PPF account from Post office to the bank.
8. Intimation from Post Office
After these steps, wait for the intimation from Post Office regarding the transfer of PPF account from Post office to the bank. In between, if you are free or have some time, visit the post office to check the status. To transfer PPF account, the post office may take more time if you will not follow up. After you receive intimation from Post Office then you can proceed to step no 9.
9. Visit the Bank Branch:
You can visit bank branch along with post office intimation and your KYC documents like PAN and address proof to open new PPF account (Form A). The process to transfer PPF account is now complete. You need to finish formalities to open PPF account with bank. You can also change your nomination by submitting Form E or Form F. You will receive new passbook with the single entry of transfer from Post Office. Though your PPF account will be new account but you will get continuity benefits i.e. it will be treated as continuing account.
The entire process to transfer PPF account took me 14 working days. Except for few hiccups, overall it was smooth. The only word of caution is to open the savings account in SBI before you transfer PPF. The reason being as i mentioned SBI branches are overloaded therefore they may refuse new savings account after PPF Transfer. You cannot give an excuse that you transferred PF therefore you need a savings account. You can operate PPF account with SBI without savings account also. In this case, it will defeat the objective to transfer PPF account.
Hope you liked the post. You can share this post with your friends and family members through following social media icons.
Copyright © Nitin Bhatia. All Rights Reserved.
thanks to shri nitin bhatia sahebji . good and informative report on PPF
Sir i also tried but till now not able to transfer my ppf account to the sbi bank.please tell is it legal to open more then one ppf account by a person.
You can open only 1 PPF account in your name. Two PPF accounts in the name of 1 person is illegal. 2nd one can be opened in child’s name but combined tax deduction of both accounts cannot exceed as specified u/s 80C.
Sir , Is it necessary that i invest the same amount year on year , or i can change the amount based on my affordability……
You can vary the amount as per your convenience.
Sir,
I am sam…I am a GOVT employee..i have EPFO account in PF office as govt employee…I want to open a PPF account in SBI…
I want to know weather i have to face any kind of problem in future of being two PF account in my name. ( one EPFO AND PPF) ?
I have heard that more PF accounts in same name do not get the PF benefit and only the principal value will be given to that person.
Weather this can happen to any one if he has PPF and EPFO ?
pleas clearly guide me in that issue before opening PPF account?
You can open one PPF account in SBI. Total tax deduction on cumulative contribution to EPFO and PPF account cannot exceed 1.5 lakh.
If you open 2 PPF accounts then you will face the problem shared by you.
I have changed my organisation since 6 years but do not transfer or withdraw my EPF balance..now that is become in operative…today i try to transfer it ..
but my leaving date of previous organization in 01-07-2009.
and in present organization date of joining is 15-06-2009
and date of appointment is 24-08-2009..
now how can i get rid of that problem..please help
You cannot work in 2 organizations simultaneously. You may check with the HR of your previous organization.
in previous organization the HR give me the dale of leaving as 01-07-2009.
in present organization induction training star on 15-06-2009…..after completion and passed the exam. they give me appointment.. if I failed I have to loose the job…after passed the training exam giving appointment on 24-08-2009.but EPFO contribution offered by present employer stat from Sep’09.
that was stopped by previous employer on Jun’09…In that respect what can I do to transfer my EPFO ACCC..
Nothing much can done. You place transfer request then see what happens.
Dear Sir – I opened SB and PPF accounts in SBI for my minor son, with my wife as the nominee. I also gained online access to SB account and linked PPF account with it to make monthly standing instruction to the PPF account. However the SI is not happening and I was asked to contact the bank for transaction rights. When I tried to make NEFT, I got the message that the transaction right are not granted for minor accounts. But bank staff confirmed that they have granted all transaction rights, but I am still unable to transfer the amount. Kindly guide me on what should be done on this.
Transaction rights are not available for minor account therefore you cannot set up Standing Instructions. I am not sure why SBI staff is misleading you. You can deposit the money in PPF physically only through the branch visit.
sir.
I have an inoperative EPF account.now I am working in bsnl…I want to withdraw money from inoperative account..is this legal? if not what action may be taken by EPF office in future?how can I handle this? please advice me.(I do not want to transfer this epf…)
Please check my following post
https://www.nitinbhatia.in/personal-finance/withdraw-money-from-inactive-epfo-account/
Very useful post indeed. I have a question on PPF transfer…
DO we need to open a savings account with the bank where we need to transfer the PPF?
Not necessary. It is your choice but some banks insist to link PPF account and savings account in same bank. In my personal opinion, you should open savings account and link PPF account with savings account in same bank.
Hi.
I am having 9yrs old PPF account with SBI. Now I want to open a of account for my son(minor) and myself as his guardian. When I took form from bank, there is declaration “I hereby declare that I am not maintaining any other public provident fund Account”.
So does it mean I can’t open of account for my son, As I already having one.
Pls clarify this. Also I heard that in such cases 2nd account doesn’t get interest on principal
You can open 2nd account in your son’s name and you being guardian. The cumulative tax deduction of both the accounts cannot exceed as specified u/s 80C for an individual. The interest will not be paid in case 2nd account is only in your name but you can open in the name of your son.
How do i transfer online from icici saving account to PNB ppf account. i entered full account number of ppf as beneficiary but i am unable to transfer as it gives error (later on i get sms) that rejected due to no account exsists
The online transfer is possible if both the PPF and Savings account are with same bank and linked to each other. In my opinion, you cannot transfer online from ICICI savings account to PNB PPF account.
It is possible to NEFT the PPF amount from any savings account to PPF account. Please carefully check the account number as it looks like you have entered wrong account number or amount more than 150k or more than online limit. I have done it multiple times.
Hello Vivek, Could you please help. I have PPF account with PNB and set it up as third party payee in ICICI Net banking. Payee was successfully set up (entered exact account no as mentioned in PNB PPF Passbook) and as test i tried transferring 51 rupees through neft. amount returned back and neft charges debited.
You can contact ICICI if amount is returned to know exact reason. The possible reasons can be:
1. You have not added the complete PPF account number of PNB.
2. You may have added incorrect IFSC code of PNB branch.
3. The minimum deposit required to be made is Rs.500. If payee setup is correct, try it with 500 Rs(multiple of 100 and minimum 500). Don’t worry about money – it will be safe.
Other important points:
4. It is important to know that you cannot deposit more than twice in a month in a PPF account. Also, you cannot deposit more than 12 times in a year.
5. Another important point is that deposit before 5th of month get interest for that month. So, if amount is large, try during 1-5 of the month to maximise interest gain.
6. Most of the banks don’t charge NEFT fee, ask your bank to waive it.
Are the post office branch centralised so that I can go to another branch (in Delhi) instead of going to the branch where I opened (In Kanpur) for transfer of PPF account
Yes. You can visit any post office. It is better to transfer to bank like SBI.
Sir, I am having PPF account in SBI from last 10 yrs. Earlier i had Saving account too with them. But i think in India it is offering one of the worst service and it is the case with many branches i dealt with in 3-4 states. I had already closed saving account due to horrible experience with SBI. Now i want to shift/ transfer my PPF account too as dealing with SBI employees is so terrible except a few exceptions. I know that for transfer they will of course create hasssles. So i think ist i should take Net banking facility for operating the account than apply for online transfer to other Govt. bank. Is it the right option ?
No, you cannot transfer like this. The transfer process is not as simple as fund transfer. Firstly, you should identify the bank in which you would like to transfer existing PPF account. The target bank will help you in this process.
Thanks, Sir
Very informative post indeed.
I am having my PPF account in Bank of Maharashtra but I want to transfer the same to SBI reason being the same as you quoted above of having savings account in that bank. Can you guide me with the process?
The steps are same as i shared in my post.
Its now been 4 months 26 days (or 149 days) since i left india. it takes 182 days to become an NRI, so i have 33 days left.
a) can i open an PPF account from abroad now?
b) can PPF account holder transfer his/her account to another person? ex: i’ll let my mother (age 65) open PPF account and after 5-10 years have her transfer her PPF account to my name. however i’ll be making all the payments from year 1 to 15.
You have not mentioned the reason why you are staying abroad. If you are on assignment abroad or left India for employment purpose then you are already NRI under FEMA.
sir,
helpful information u had shared.
i have a doubt, actually i had open a PPF account in Punjab national bank and i have internet banking on my salary account i.e. on corporation bank..but i cant link my ppf account with the corporation saving account. i had tried to transfer the fund via NEFT also ..but during the transfer first it shows debit of the amount and later it shows reversal of the same amount after deducting certain transaction charges as applicable.
every time i have to visit the PNB branch and have to wait for my number and then only it may possible to transfer the amount.
iit seems transferring the accounts is a long process, it is also to be stated that my corporation bank branch is not offering any PPF.
please suggest the needful.
thanks and regards
Vinay barthwal
In my opinion open a savings account in PNB and link to your PPF account.