There is a common belief that a person may only open a Public Provident Fund (PPF) account in the bank where he/she has a savings bank account. But, according to the provisions of the Public Provident Fund Scheme, 1968, any resident Indian citizen of minimum 18 years of age may open a PPF account for self or for a minor of whom he/she is the guardian in a bank or Post Office, and having an account in that bank or Post Office is not mandatory.
However, like while applying for lockers, banks insist on putting some money in fixed deposits (FDs), applicants of PPF accounts are also asked to open a savings bank account, if an account is not there with the bank, although that is not essential.
Who can open a PPF account
Only a resident individual may open a single PPF account for self and/or one account each for his/her minor children. Non individuals and non-resident Indians (NRIs) can’t open a PPF account. However, a resident, who subsequently becomes NRI during the currency of the maturity period, may continue to subscribe to the fund till its maturity on a non repatriation basis, but can’t extend the account after maturity. But, total deposits by an individual can’t exceed the current ceiling of Rs 1,50,000 in a financial year, taking together deposits in all the accounts opened by him/her.
Under the rules only parents can open a PPF account on behalf of minor son/daughter. If neither parent is alive or where the only living parent is incapable of acting, grand parents or a person entitled under the law for the time being in force to have care of the property of minor, can open a PPF account on behalf of such a minor.
How to open a PPF account offline
To open a PPF account with the State Bank of India, where you don’t have any other account, you have to fill Form A and submit it to the branch, where you want to open the PPF account, along with a passport size photograph, copy of PAN card (or form 60-61 in case of absence of PAN card), ID proof (PAN card, voter ID, Diving licence, or ration card), Residence proof (passport, ration card, electricity/water bill, gas receipt, or bank statement of the last three months) and nomination form. You have to deposit a minimum of Rs 100 in cash while submitting the form.
As an individual can open only one account in his/her name either in the post office or in the bank, you have to declare in application form that you don’t have any other PPF account. So, persons having a PPF account in the bank cannot open another account in the post office and vice-versa.
Disadvantages
In case you don’t have any SBI savings account, you may make subsequent deposits by cash or through cheques of other banks in the branch, where you have opened the PPF account.
On the other hand, existing account holders may open a PPF account online and make subsequent contributions online.
PPF withdrawals may also take longer in case you don’t have a savings bank account in SBI.