Central Bank of India PPF Account

Central Bank of India PPF Account Eligibility

The eligibility criteria for the PPF account with Central Bank of India, are as follows:

• Any resident Indian who is above 18 years of age is eligible to apply.
• Minors can apply, represented by their legal and/or natural guardian.
• A single individual cannot hold joint PPF accounts.

Documents Required to Open a Central Bank of India PPF Account

• Completed and signed account opening Form A
• Duly filled Pay-In Slip Form B
• Nomination Form E must be completed and signed
• 2 recent passport-size photographs
• Identity Proof: Aadhaar Card, PAN Card, Voter’s ID, etc.
• Address Proof: Aadhaar Card, Utility Bills (Electricity Bill, Water bill, Gas bill, etc.)

Steps to Open Central Bank of India PPF Account Online

The Central Bank of India provides an online procedure for opening a PPF account, which is available to existing customers. Here are the steps to open a Central Bank of India PPF account online:

1. Access the bank’s Net Banking facility using the User ID and password.

2. Click on the link for a new PPF account application at the Net Banking portal.

3. Fill in basic details, nominee details, minor’s details (if applicable), and branch code details.

4. Submit the mandatory branch code details.

5. Verify the nomination details, including address details.

6. Once created, the PPF account number will be displayed in the user’s Net banking portal.

7. Download and print the filled form, and submit it with the necessary KYC documents to the bank’s branch within 30 days.

8. Pay an initial minimum amount of Rs. 100 to open the PPF account (cash, cheque, or demand draft).

9. Once your PPF account application is reviewed and approved, your PPF account will be opened.

Steps to Open Central Bank of India PPF Account Offline

The bank provides the offline mode of opening a PPF account: Here are the steps to open a Central Bank of India PPF account offline:

1. Visit any of the nearest branches of the Central Bank of India.

2. Fill in the required forms: Form A (application Form), Form B (Pay-in Slip), and Form E (Nomination form).

3. Submit these forms along with the necessary KYC documents as required by the bank.

Features of Central Bank of India PPF Account

The features of the Central Bank of India PPF account include:

PPF Deposit Amount:

• Minimum deposit of Rs. 500 and maximum deposit of Rs. 1.50 lakh in a Financial Year (FY).
• The maximum limit of Rs. 1.50 lakh includes deposits made in the account holder's own account and in the account opened on behalf of a minor.
• Amount can be deposited in any number of installments in the FY in multiples of Rs. 50, up to a maximum of Rs. 1.50 lakh.
• The account can be opened by cash/cheque, and the date of realization of the cheque in the Government account shall be the date of opening the account/subsequent deposit.
• Deposits qualify for deduction under section 80C of the Income Tax Act.

Discontinuation of PPF Account:

• If the minimum deposit of Rs. 500 is not made in any financial year, the PPF account becomes discontinued.
• The withdrawal facility is not available on discontinued accounts.
• Discontinued accounts can be revived by the depositor before maturity by depositing the minimum subscription (Rs. 500) + Rs. 50 as a default fee for each defaulted year.
• The total deposit in a year shall be inclusive of deposits made in respect of years of default from previous financial years.

PPF Interest Rate

• Interest Rate is notified by the Ministry of Finance every quarter.
• Interest is calculated for the calendar month on the lowest balance in the account between the close of the fifth day and the end of the month.
• Interest is credited to the account at the end of each financial year and is tax-free under the Income Tax Act.

Loan Against PPF

• You can take a loan against your PPF deposit account after the 3rd year of its inception. The maximum loan amount can be up to 25% of the total balance at the end of the 2nd last financial year.
• For example, if your account has been active since FY 2010-2011, you will be able to take a loan only from FY 2013-2014, and the maximum amount will be 25% of the balance as of the end of FY 2010-2011.

PPF Withdrawal

• A subscriber can take one withdrawal during a financial year after five years, excluding the year of account opening.
• The withdrawal amount can be up to 50% of the balance at the end of the 4th preceding year or at the end of the preceding year, whichever is lower.

PPF Maturity

• The account matures after 15 financial years, excluding the year of account opening.
• On maturity, the depositor has various options, including taking maturity payment, retaining the maturity value in the account, or extending the account for a further block of 5 years.

PPF Premature Closure

Premature closure is allowed after 5 years from the end of the year in which the account was opened, subject to certain conditions such as life-threatening disease, higher education, or change of resident status.

Death of PPF Account Holder

In case of the death/ demise of the account holder, the account is closed, and nominees or legal heirs are not allowed to continue deposits in the same account.