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Business News/ Money / Personal-finance/  Did you know: How to transfer a PPF account
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Did you know: How to transfer a PPF account

To transfer a PPF account, first go to the bank or post office where the existing account it, fill the required forms, and get a closure document, which you will need to open the new account

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Public Provident Fund (PPF) is one of the most recommended investment products by financial advisers for fixed income instruments, to achieve long- terms goals. PPF fits in almost all the portfolios, as the returns are better compared to its peers .

It qualifies for a deduction of Rs1.5 lakh under section 80C of the income tax Act and maturity proceeds are tax free. Till a few years ago, only post offices and two nationalised banks—State Bank of India and Punjab National Bank—offered services to open PPF accounts. But in the last few years, beside other nationalised banks, private banks have also started offering this service. If you already have a PPF account with a bank or a post office, but are unhappy with the service or are facing any problems in operating the account, you can transfer the PPF account to the bank of your choice.

The process

To transfer an account, you have to submit a PPF transfer request to the bank or post office where you currently hold the account. In case your current PPF account is with a post office, you need to fill the transfer form number SB-10(b), you can also download this form from the post office website https://www.indiapost.gov.in/VAS/Pages/Form.aspx.

Upon receiving a request from the account holder, the existing bank or post office will process the discontinuation request of the account. The existing post office branch or the bank can provide you the original documents such as a certified copy of the account, the account opening application, nomination form, specimen signature and others, along with cheque or demand draft of the outstanding balance in the PPF account to the branch of the bank or post office mentioned by the account holder in her request. The bank or post office can also arrange to send these documents to your desired branch or post office.

To transfer a PPF account, first go to the bank or post office where the existing account it, fill the required forms, and get a closure document, which you will need to open the new account. For instance, if you want to get your PPF account transferred from your existing bank to ICICI Bank Ltd, you would first need to open a savings account with the new bank and also a new PPF account.

An existing customer of the bank is also required to submit a fresh PPF account opening form (Form A), nomination form (Form E/ Form F in case of change of nomination), along with the original PPF passbook. A fresh set of know-your-customer (KYC) documents may also be required to be submitted by the customer.

In case of transfer of the PPF account, the new account will carry a new number but will be considered as a continuing account.

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Published: 25 Oct 2016, 04:23 PM IST
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