How to Transfer PPF account at Post Office to SBI in India


Having a PPF account in Post office in India is very troublesome. For instance, there is no option to deposit money online in that case. At such, transferring your account to SBI bank is always a good option. Read this post for detailed procedure to do so.

If you are having a PPF account in post office, there are certain limitations. Firstly, you will not be able to deposit any money online in the PPF account. This means that you will have to visit the post office every time you want to make a deposit( this wastes a lot of time). The solution to this problem is to get the PPF account transferred from the post office to the State Bank of India(SBI).

Procedure to transfer the PPF account

First of all, you need to get the PPF passbook updated with all the interest. For this purpose, visit your post office and get the passbook printed from the post office. Thereafter, you will have to ask for the PPF transfer form from the post master. Fill it and also attach an application on a paper for the account transfer. Moreover, you have to give PAN card photocopy and the photocopy of SBI account passbook. You have to submit these documents to the post office and the postmaster will then verify the details. Once verification is complete, he will initiate the transfer after closing the PPF account in post office. The balance from the PPF account is sent from the post office account to SBI account with all the details. Once the transfer is complete, you will be notified.

Problems in the PPF account Transfer

First problem is that the employees in the post office and bank might not be aware about this option in detail. At such, this process might consume some time. You are thus advised to remain proactive and keep track of the whole process. You should also ensure that all the interest is updated correctly after the transfer. An important thing to remember here is that once the account is transferred, you will get a new passbook from SBI. This PPF passbook will not contain the previous transactions and thus you need to get the old passbook photocopied as well as the documents used in the transfer. Another possibility is the post office employees being ignorant about any such transfer facility. In case, they are not aware about this, you should spread the awareness.

Should you use the PPF account transfer option?

If you are not going to deposit the money in PPF account through online transfer, there is no need to get the account transferred. All the features (interests and tax benefits) are same whether you open the account in SBI, Post Office or any other bank. However, having the account in SBI will also give you an option where you can see all the transactions in PPF account online. You just have to give an application in the branch for this purpose and they will your account with PPF account. You will also be able to transfer money from online savings account to PPF account with single click. There is no need to visit post office regularly to know the balance or to make any transaction in PPF account. It will thus save a lot of time.


Comments

Author: Partha Kansabanik12 Nov 2017 Member Level: Diamond   Points : 5

A very useful article. I have seen many people feel comfortable in transaction in Post Office compared to transaction in banks. These people open PPF Account in Post Office. However, online transfer in PPF maintained in Post Offices is not possible. At the same time, if we don't deposit the money in PPF Account by 5th of a month, we won't get the interest of that deposit for a month. So, it is always better to have a PPF Account in the bank with provision of online transfer.

I have a PPF Account in SBI which is linked with my Salary Account maintained in the same Bank. As soon as my salary is deposited in my Salary Account, I transfer money to my PPF Account. This saves me from filling up of the forms and minimizes chance of delay. I feel investors who have their PPF Account in Post Office must shift their Account to any bank with provision of online transfer. The author has correctly mentioned the procedure and the document required for such transfer. For transfer of PPF to any SBI branch, the investor has to fill up SB10-b form along with the written application.

The author has also correctly mentioned that many employees of Post Offices don't know the exact procedure and so they are reluctant to entertain the customers. In such case, the customers are required to take a print-out of rule position and convince the Post Office employees. Sometimes, there are chances of altercations, but the rule is in favour of investors.

Lastly, I want to stress on the fact that the investors won't lose any interest due to such transfer. In an ideal situation where all documents are submitted along with application, the transfer process takes less than ten working days to be completed.



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