Bank Charges deducted on redemption of PPF (via Payorder)

I think you are joking.

25000 rs for preparing pay order, it is not at all possible.

If such a big deduction then that would be TDS. But
PPF investment doesn't attract any tax(TDS).

Something really went wrong.
Go to bank and ask clarification for deduction. If you doesn't satisfy with the reply ask bank statement for the transaction, file a complaint in the branch. You will get something reply.

Then also you are not satisfied file a case in Consumer forum.

And also i recommend you to use Contact Us option of RBI website, choose proper category and send a e mail. Don't get disappointed you will get reply very late, but surely you will get.

Do post here further proceedings in this section.

Is that lady an income tax assessee, usually PPF account is opened by individuals to get the benefit of 80G, where it is fully exempt from tax.

You have not mentioned the installment amounts paid by the lady during any year and the lump sum amount she received. Without these two information, it is difficult to give a correct answer.

Dear Sangeeth,

Thanks for reply, I my self went to the bank, they told me they have deducted bank charges on preparation of Pay Order of the PPF redemption amount. On hearing this i had a good conversation with them but to no avail. I insisted that its bank obligation to make the payment and their is no premature withdrawal too, the PPF account had completed its 15 year term on 31.3.2010 and then only the complete withdrawal has been requested, here no service is being rendered but its bank part to make the payment.

They didnt entertain me whatsoever.

Dear Sharadha,

The lady is an income tax assessee and she has been filing all her returns on time, as of now we get deduction upto 70000/- for amount invested in PPF under 80C.

However I dont think, disclosing installments amount paid by the lady or the lumpsum amount received by her would make any sense as SBI is accepting their liability to pay and has made all the payments. The only issue IS IT LEGAL TO DEDUCT BANK CHARGES BY SBI ON REDEMPTION OF PPF, here making the payment was an obligation of sbi and further i also made some inquiry regarding this matter, in which i found that on redemption of fixed deposit proceeds via payorder SBI dosen`t deduct any bank charges. I dont know how have they deducted such an huge amount as bank charge. Further please also note that the withdrawal was after 15 year and not between the term of 15 years.

However In event you think disclosing lumpsum amount, etc. would make sense, please give me your mail id. I shall mail you the figures. Thanks a ton for the concern.

Regards
Sandeep Poddar

And ya she has never withdrawn any amount for her PPF A/c, prior to this, complete withdrawal.