How to Withdraw Your PPF Amount Online?

Employees, as well as people working in the unorganized sector, benefit from the scheme. In the article below, we shall focus on how to withdraw PPF amount, how to close PPF account, and other details relating to PPF partial withdrawal.

Online Account

The PPF account can be opened online or offline. Most banks and post offices offer an offline account opening facility. However, even if you create an offline account, the account can also be managed online. Among the banks that offer PPF Accounts, a few allow you to open an account online or offline, whereas others allow only offline account opening applications.

Online Account Opening Process:

Many leading banks like HDFC, ICICI, SBI, Axis Bank, etc., allow you to open a PPF Account online in the comfort of your home or office. Opening a PPF Account online can be done anytime, 24X7. The process is instant and paperless.

Requirements to Open an Online Account

• To open a PPF account online, you should have access to the following information:

• PAN card number

• Aadhaar Number

• The mobile number linked to the UIDAI

• The OTP sent to your registered mobile number

• PAN and Aadhaar should be linked

• Savings account with the bank

• Net banking facility

Below are the steps to open a PPF Account online

• Sign in to your bank’s NetBanking facility

• Under one of the tabs, click on the banner for ‘Public Provident Fund.’

• Enter and confirm the details and the amount you want to deposit

• Choose if you wish to add a nominee and click submit

• If your Aadhaar is linked to your account, your form will be submitted, and you will receive a message that your account will be opened within 1-2 working days

• If your Aadhaar is not linked, you must first link it to be able to complete the process

• Once you have opened a PPF Account online, you can transfer funds directly from your Savings Account to your PPF Account.

Contribution to the PPF account

There are several ways to contribute to the PPF account. You can deposit money into your account by using the pay-in slip provided at the bank or post office. It is a completely offline process. You can deposit the money into your public provident account by cheque, DD, and online transfer, in addition to cash deposits. If you set the automatic deduction from your account, the money will be deducted from your account and credited to your PPF account instantly. 

Loan Facility

The loan facility is available between the 3rd year and 6th year of investment. From the 7th year, no loan facility will be extended. The maximum tenure of the loan can be 36 months (3 years). The loan amount can be taken for a maximum of 25% of the total available amount. You can check the eligibility criteria for a loan by accessing your account online. The interest on the loan will be 2% higher than the interest paid on the PPF deposits. You can pay the interest as well as the loan at regular intervals. After the closure of the current loan on PPF deposits, you can apply for another loan. However, the second loan can be taken only before the 6th year if the first loan is fully repaid. 

Online Statements

The PPF account online access will let you download statements as per your convenience. You can download a statement as per the financial year so that the statement can be submitted to your employer very easily. The account status, loan eligibility, loan account status, eligibility for withdrawal, and withdrawal limits can be tracked online.

PPF Partial Withdrawals

PPF Partial withdrawals are allowed from the 7th financial year, that is, after the completion of 6 years. PPF partial withdrawal can be made prematurely, up to a maximum of 50% of the amount that is accumulated in the account at the end of the 4th year (preceding the year in which the amount is withdrawn or at the end of the preceding year, whichever is lower). Also, only one withdrawal in a financial year is permitted.

The PPF account online facility will help you find out your PPF partial withdrawal limits. Once you log in to your online banking account, you can find the particulars of your savings account, loan account, and PPF account. If you are eligible for the withdrawal option, you can apply online.

The online banking facility will ease your task to some extent. The appropriate PPF partial withdrawal form can be downloaded and submitted to the bank branch. It will help the bank branch to process your application quickly, and the amount can be withdrawn.

How to Withdraw PPF

Below is the PPF partial withdrawal process:

Step 1: Download the PPF Withdrawal Form (Form C) online from your bank’s website. The same form is used for PPF partial withdrawal. The PPF partial withdrawal form consists of three sections:

• Declaration section: Mention the PPF account number, the amount of money to be withdrawn, and the number of years the account is active.

• Office-use section: Mention details like account opening date, current balance, previous withdrawal date (if applicable), total withdrawal made from the account, etc.

• Bank details section: Enter the bank account details for crediting. 

Step 2: Enclose a copy of the PPF passbook along with Form C.

Step 3: Submit the same at your respective bank branch

At the moment, the banks are not fully automated with the PPF withdrawal online process. Thus, the investors have to visit the bank branch with whom they have opened a PPF account. PPF withdrawal online is limited to checking the eligible amount through the net banking facility. However, the investors can download and fill in Form C and submit it at the concerned bank branch or post office.

How to withdraw PPF After Extension Without a Contribution

Once you have extended your PPF account in a block of 5 years, you are eligible to withdraw a certain amount up to its balance. Only one withdrawal is allowed under PPF withdrawal rules during the extended period. Also, there is no cap on the withdrawal amount.

For example, if you had opened a PPF account in 2005 and in 2020, it accumulated a balance of Rs. 10,00,000. Thereafter, you decided to extend it from 2020 to 2025 without contribution. In this case, you will only be allowed a PPF withdrawal of an amount up to Rs. 10,00,000 once a year during an extension period.

How to withdraw PPF After Extension With a Contribution

If you opt for an extension of your PPF account with contribution, you can withdraw 60% of its accumulated balance at the time of an extension. You can only make one withdrawal per year over an extended period. 

For example, if you had opened a PPF account in 2005, it accumulated Rs. 10,00,000 in 2020. Now, you opted for an extension to 2025 with contributions. This would allow you to make withdrawals each year during the extension period. Additionally, you cannot withdraw more than 60% of the balance amount, i.e., Rs. 6,00,000.

How to Close a PPF Account?

One can close a PPF account after completing 15 years from the date of opening the account. The procedure to close a PPF account is given below:

Step 1: Fill up Form C and attach your PPF passbook.

Step 2: Submit this to the concerned Post Office/bank branch where the account is held.

Step 3: Your application will be processed, and the account will be closed. You will receive the payment in your savings account linked to the PPF account

There is also the option to close your PPF account prematurely after 5 financial years under some specific grounds:

• In financial need due to medical emergencies

• For funding child’s higher education

That being said, we must also highlight here that you will face a penalty for premature closures. A 1% penalty is levied on your PPF account’s actual rate of interest.

Conclusion

With the PPF account online facility, you can access your account information and request for loans. PPF withdrawals online can also be submitted to an extent. There is great flexibility in maintaining the online account. Thus, it’s time that you made the most of your PPF account and enjoyed its online facilities.

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