Recently, one of my blog readers has found it difficult to transfer his PPF Account from Post Office to his SBI or ICICI Account. Hence, I thought to explain the process of transferring your PPF Account from one post office or Bank to another post office or Bank.
What may be the reasons for such transfer?
Ideally, when you change the location then you feel that your post office or bank branch must be near to you. This provides a lot of ease for managing your PPF (Public Provident Fund) account. Hence, usually when people change location from one place to another or from one city to another, then they look for change their PPF account.
The second most important aspect of shifting from Post Office to their desired Bank is, again an easy of managing the PPF account. Because, as of now Post Office not provide you any such facility where you can invest in PPF account using an online facility.
Nowadays Banks offer all facilities through net banking. Hence, investors feel it more convenient to invest through Bank rather than the old boss called Post Office.
Points to remember while transferring PPF account-
- Even through process to some extent looks like opening new PPF account, but still your old PPF account will continue with all old balance including interest will be transferred to a new account. Only the designated branch or post office of the PPF will change.
- You will not lose interest earning on your investment. Ideally, PPF interest is calculated on lowest monthly balance between the close of 5th day and up to the end of the month. I explained in detail about this calculation method in my earlier post “PPF-When to contribute to get higher returns?” However, the interest will be credited to your account once in a year (at the end of the previous Financial Year). Hence, the post office or bank, which is transferring your account, will credit the interest up to previous March 31st balance. The interest from 1st April will be added by the transferring post office or bank.
Procedure to transfer a PPF account from one Post Office or bank to another Post Office or Bank
- Take the photocopy of an existing PPF Account Passbook. Later on, this may be helpful in case you find any discrepancies in your PPF account or showing the proof of investment for tax saving purpose.
- A written application for transfer needs to be made to the Post Office or Bank from where an investor wants to transfer his PPF Account. Along with this written application, you also have to fill the PPF Transfer Form (SB10-b). You have to provide your PPF Account Details, names and addresses of the branch/bank/post office where it is held, as well as the location where the transfer is sought. You will find the written application format at HERE.
- The next step is a verification process of signature by the existing Post Office or Bank. Once this process is finished, then the existing Post Office or Bank will arrange to send the original certified copy of the account, the account opening application, nomination form, specimen signature, etc. to bank branch address provided by the customer, along with a cheque or DD for the outstanding balance in the PPF account.
- Once the transfer documents along with Cheque or DD received by the new Post Office or Bank then you have to fill the fresh PPF Account Opening Form (Form A).
- Along with that, you have to fill the PPF Nomination Form (Form E), if you have not opted nomination earlier. In case you want to change your nominee, then fill PPF Change of Nominee Form (Form F).
- You have to submit fresh KYC documents once again (even though you submitted earlier or done KYC earlier with your savings account).
- You will receive the new passbook from the new Post Office or Bank with past credit is shown as Balance Transfer.
- From now onward, your account PPF account will be with the new Post Office or Bank as a CONTINUED ACCOUNT.
Problems one may face during transfer-
- Too much delay in transfer (especially if it is from the Post Office to Bank). The Major reason will be the lethargic attitude of officials.
- Interest credit issue. As I said earlier, the old Post Office or Bank will credit interest up to previous 31st March. The new Post Office or Bank has to calculate the balance of credit interest from 1st April. However, in some instances they may consider from the date of the actual transfer. Suppose you transfer the account on 10th June 2015 then also new Post Office or Bank must credit interest considering the balance from 1st April 2015. However, few Post Offices or Banks, credit interest considering the balance from the date of transfer i.e. from 10th June 2015. Hence, check the balance and interest credited once the interest credited after the end of FY.
- In such delayed or errors, you have option to complain the Bank or file an RTI to rectify the same.
Hope this information will be useful for all PPF Account Holders.
View Comments
Hi BasuNivesh,
As mentioned in your article above, interest received is only from the transfer date till FY end by the new bank. How to get the remaining interest? Please elaborate on this process or point me to the article if it is already written.
Thanks
Dear SSJ,
Prior interest is the responsibility of the older bank or Post Office.
Thank you so much for sharing this information.
The SB(10) form only has field to enter new post office where account needs to be transferred.
So for transfer from post office to bank do we have to fill and submit SB(10) form also?
Do we need to submit the original passbook with the request for account transfer?
Thanks in advance for you help in resolving queries.
Dear Mehernosh,
Yes you have to fill SB(10) but instead of Post Office, you mention the bank.
Thanks
The reason is Sansad Marg PO has complete data wef 2009 (and same is in the passbook that was issued to me in 2009 by Sansad Marg PO).
The PNB Dehradun is asking for details of 1995-2008 period which were shared by Ashok Vihar PO with Sansad Marg PO and same is not available with Sansad Marg PO
The Sansad Marg PO has sent the exact amount to PNB as becomes due after including interest for FY ending 31 March 2021.
Dear Rajesh,
If the balance of up to 2008 and afterwards balance is showing perfectly, then why PNB need the 1995 to 2008 details is the question mark to me too.
From 1995 to 2009, I had my PPF in Ashok Vihar, Delhi Post Office. It was then shifted to Sansad Marg New Delhi PO. On my shifting from Delhi to Dehradun this year I got it transferred to PNB Dehradun. The Sansad Marg New Delhi PO has sent, along with all other documents, statement of entries from 2009 to 2021. The passbook that I was given also has same entries. Now the PNB is demanding statement of entries from 1995 to 2009 which Sansad Marg PO does not have. According to them these documents were destroyed during cleanliness drive.
What is the future course of action for PNB and for me
Thanks for your guidance
Dr Rajesh Bhatia
Dear Rajesh,
If the data is already updated by Sansad Marg PO, then why the PNB need the Ashok Vihar PO entries?
Thank you so much for this help as i was so confused what should i do. all two PPF accounts are 1yrs old and have 3k only in each.
Now i am again thinking is HDFC bank safe for long term (PPF) as i want to invest more money into PPF now.
And what is the process to close Post office PPF account Because in HDFC bank i can invest by my own and in post office i will have to go to deposit amount. thinking to close post office ppf account.
Dear Harish,
You must not own more than one PPF account in your name. First close the account if you have more than one.
I have opened PPF account in Post Office and HDFC bank both. Is there any issue.
Should i maintain both accounts or should i transfer Post office to Bank or should i leave post office account as it is.
i am confused. What should i do? pls email me if possible.
Dear Harish,
You are not allowed to have two PPF accounts. Hence, close the one immediately.
Hello Sir,
I have opened my ppf account online through the union bank of India. The address mentioned there for the account is wrong and I want to transfer it to my home town branch.
How can I do this?
Dear Nupur,
You better first update the address and then request for transfer.
OK.
Thanks, Sir for a prompt reply.
I opened ppf account in the post office of my minor children. later they moved to canada. I maintained their accounts. On maturity, now the post office demands adhhar card and pan card for payment, which they donot have. So what should we do do to get the payment.
Dear Jeet,
Sadly the KYC is mandatory now. If they are NRIs, then also you can get both the documents right?
Dead Sir
I'm om kumar me account no is -3709487400(PPF) need to online balance inquiry, so kindly provide the online balance inquiry process.
Regards
Om ku
Dear Om,
Approach EPFO.
I have taken a loan from my PPF account. The PPF Loan repayment is still pending. Now I am relocate to some other plan & I requesting to Bank to pl transfer my PPF account to another bank which is near by to my residence. Now bank official says first you have close PPF Loan account then you will transfer the PPF account to another bank. My query is that what is the actual PPF Govt ruling, as per my understanding the complete account transfer from one bank to another including PPF Loan account. PPF Loan will be provided by Govt not bank. Bank is just custodian of the PPF account. He is not holding or Paying anything against PPF then why bank asking to first close the PPF Loan account & then will transfer the PPF account to another bank. Pl clarify this point.
Dear Ashutosh,
There is no such hard rule that one must close the loan then only the transfer will be accepted. Hence, you can request for transfer. However, if they are so rigid, then let them show the Govt ruling on the same.