Steps to transfer your PPF account to a different bank or branch

Inconvenience in operating through post offices

To deposit an amount in the PPF account, you have to visit the post office and stand in a long queue, which could take a couple of hours. However, if you have a PPF account with a public or private sector bank, then deposit can be made online via the National Electronic Funds Transfer (NEFT). Depositors can also create an ECS (electronic clearing system) mandate with the bank to debit the account on a specified date to invest in the PPF account.

These facilities are not available to investors who have a PPF account with a post office. Some of the banks such as State Bank of India, HDFC Bank, Axis Bank, ICICI Bank and Bank of Baroda allow online deposits in the PPF account. Thus, it may be a good idea to transfer your PPF account from the post office to a bank and avail the better facilities on offer.

If you relocate to another city for employment, are not satisfied with the bank’s services facilities, shifted to a new house in other area so can’t visit the branch, etc., then moving your account to another branch or bank is a good option.

Moving accounts

In case you wish to transfer your PPF account from a post-office to a bank or from one bank to another, you need to submit a transfer application request at your existing post-office/bank branch along with your original PPF passbook.

In the application form, mention the complete address of the bank branch to which you wish to transfer your PPF account.  Harshil Morjaria, a Mumbai-based certified financial planner at ValueCurve Financial Solutions suggests, “While submitting your PPF passbook to your existing post-office or bank branch, keep a photocopy of it for a record of past transactions. Also, collect the receipt of the transfer request from your post-office/bank.”

Then, the current post-office/branch will submit your transfer application form, existing PPF passbook, a certified copy of the account, specimen of your signatures, nomination details, a cheque or demand draft with outstanding balance to the bank that is specified in the application form. Once the new bank branch receives your transfer request for the PPF account with the documents, you would be informed.

At the new bank branch, you will need to submit a fresh PPF account opening form and nomination details, if there is any change. You may also complete the know-your-customer (KYC) process. So, submit your PAN copy, address proof (voter card, electricity bill, etc.) and personal identity proof (driving license, passport copy, etc.). The PPF transfer processing from takes up to one month.

However, in case you want to continue investing in PPF with the same bank and just need to change the branch to a new area/city that you are relocating to, the process takes only up to seven working days. You just need to submit an application form to the existing branch ask for a change of branch.

Key points to remember

Even though you may have submitted the new PPF account opening form at the bank, the transfer of account is considered as a continuing account. “You will be eligible for withdrawal and loan facilities as per PPF norms even after transferring of account,” says Ashish Apte, CEO at AAA ResearchOne Financial Consultants.

Due to the transfer process, the new branch issues a new PPF passbook. In that case, verify whether your new PPF passbook is shows the correct outstanding balance.