Public Provident Fund (PPF), 2019

How do I apply for the Public Provident Fund (PPF) Amendment Scheme, 2019 through UCO bank ?

To apply for the PPF Provident Fund (PPF) scheme, 2019, you have to fill Form A and submit it at any UCO Bank branch with relevant documents. The PPF account will be opened in one of the branches. Please mention the name of branch where you wish your Public Provident Fund (PPF) account to be opened on Form A. Refer FAQ's on documents required.

What is the eligibility for investing under Public Provident Fund (PPF) Amendment Scheme, 2016 ?

• A Public Provident Fund (PPF) account can be opened by resident Indian Individuals and individuals on behalf of minors.
• Only one Public Provident Fund (PPF) account can be maintained by an Individual, except an account that is opened on behalf of a minor.
• A Public Provident Fund (PPF) account can be opened either by the Mother or Father on behalf of their minor Son or Daughter; however the Mother and Father both cannot open Public Provident Fund (PPF) accounts on behalf of the same minor.
• Grand-parents cannot open a Public Provident Fund (PPF) account on behalf of minor grand-child; however, in case of death of both the Father and Mother, Grand-parents can open a Public Provident Fund (PPF) account as guardians of the Grand-child.

What are the documents required for opening a Public Provident Fund (PPF) account with UCO Bank?

• PPF account opening form (Form A )
• Nomination Form
• Passport size photograph
• Copy of PAN card/ form 60-61
• ID proof and Residence proof as per Bank's KYC norms

What is maturity period of PPF account?

The maturity period of PPF account is 15 years from the date of opening.

Can we continue PPF after 15 years?

After the 15 years lock-in period you can extend its maturity by submitting Form H in bank within one year from the date of maturity. You can extend your PPF account for a block of 5 year. After completion of five year you can again apply for extension as there is no limit in the number of extensions

Can I maintain more than 1 Public Provident Fund (PPF) account under my name?

Only one PPF account can be maintained by an Individual, except an account that is opened on behalf of a minor.

What is the minimum and maximum amount that can be invested under the Public Provident Fund (PPF)?

The minimum deposit amount is Rs. 500 per annum and the upper ceiling limit is Rs. 1, 50,000 per annum.

What happens if I fail to deposit any amount in one or more Financial Years?

A penalty of Rs. 50 will be levied per year of default, if the customer doesn't deposit the minimum deposit amount of Rs. 500 on the completion of the financial year

When does a Public Provident Fund (PPF) account mature?

A Public Provident Fund (PPF) account gets matured after the completion of 15 years from the end of the year in which the account was opened.

When we can withdraw PPF amount?

After the lock-in period of 15 years subscriber can be withdrawn full amount. As well subscriber can withdraw partial amount before maturity period from the 7th financial year, of an amount that does not exceed 50% of the balance of the customer credit at the end of the fourth year immediately preceding the year of withdrawal or the amount at the end of the preceding year, whichever is lower.

Can we get loan against PPF account?

Yes, you can. Loan facility can be available from 3rd financial year up to 5th financial year.

Can we close PPF Account before maturity period?

The Public Provident Fund Scheme, 2016 made an amendment in PPF Scheme, 1968 to facilitate premature closure of PPF account. You can opt for premature closure of your PPF account after completion of 5 years for medical treatment of family member and for your higher education. In case of premature closure, you are required to pay 1% of your balance amount as penalty to bank.

Is PPF amount tax free?

Yes, PPF falls in the category of EEE (Exempt Investment, Exempt Return, Exempt Maturity or Withdrawal). Thus, both the deposits and withdrawals are totally tax free.

How much tax can be saved on PPF?

You can invest Rs. 1, 50,000 in PPF and you can save applicable tax on this amount.

Can I deposit more than 1.5 lakhs in PPF?

A PPF account holder can deposit a maximum of Rs 1.5 lacs in his/her PPF account (including those accounts where he is the guardian) per financial year. Any amount deposited in excess of Rs 1.5 lacs in a financial year won't earn any interest.

How many times we can deposit money in PPF account in a month?

There are no restrictions on monthly deposit provision so you can deposit more than 2 times but maximum 12 times in a financial year.

Which bank gives highest PPF account interest rates?

The Public Provident Fund (PPF) is a savings-cum-tax-saving scheme is introduced by National Saving Institute of the Ministry of Finance and it's not a product of any particular bank, so PPF interest rate will same for all the banks as well as post offices.

How can I get maximum PPF benefits?

PPF interest is no longer fixed and is now depends on government bonds. The interest calculation is done every month and calculated on lowest balances in account between 5th and last day of the month. So if you would like to earn interest for that month then deposit amount on or before 5th of the month.

How many PPF account can a family have?

A family can have multiple PPF accounts: one for each father, wife and one for each child, and so on.

Can a housewife open a PPF account?

Yes, housewife can open PPF account. In addition, husband may deposit own money into her PPF. But since she doesn't have any taxable income, she cannot avail any tax benefit for it. Husband cannot claim any tax benefit on her PPF investments.

Can I open two PPF account?

No, as per rule, one person can keep only one PPF account but one can maintain another PPF account of spouse/children on behalf of them.

Can I deposit cash in PPF account?

Yes, you can. Amount can be deposited in cash, cheque or via demand draft, online transfer through digital mode

What is different between PPF and EPF account?

EPF is a special mandatory savings scheme only for salaried employees working in government and private sector subject to certain thresholds. Non-salaried individuals such as businessmen, self-employed professionals are not covered under EPF. The EPF scheme may be run by the respective employer through its own trust or by way of depositing the contributions with EPFO, a government run body that manages EPF money. A salaried person who is covered under EPF is eligible to also open a PPF account.

Is investment in PPF risky?

No, it is not. PPF invests in government bonds. These bonds are backed by the Government of India. The government securities are considered the most secure investment. Your investment is as much risk as the risk of government default. It is very safe and long term investment.

When will PPF interest rate change?

PPF interest rate is changing every year so subscribers should keep eye on it. However, there is no pre-determined dates when the PPF interest will be change. Ministry of finance, Government of India is publishing the ROI in Gazette Notification every quarter.

I opened my PPF account when I was a resident Indian. Now I am a Non-resident Indian. Can I continue my PPF account in UCO Bank?

As per Ministry of Finance Notification number GSR1237(E) dated 3.10.17, PPF accounts of resident Indians who became NRIs during the currency of the maturity period , would be deemed closed from the date from which the account holder became an NRI. However, this rule has now been put in abeyance (as per Govt OM no. F/01/10/2016-NS dated 23.02.18) and NRIs can continue to hold PPF accounts as before.