PPF is an investment instrument that offers a guaranteed return, it enjoys the exempt-exempt-exempt (EEE) tax status, which means that you get tax benefit at the time of investment, and there’s no tax incidence on the accrual amount or the final withdrawal amount at maturity.
PPF account comes with a lock-in-period of 15 years, which can be extended further by a block of five years as many times as you want. However, it allows partial withdrawal before maturity and even offers loan facility, subject to certain term and conditions.
Step –By-Step Process
1. 1. Visit the bank’s branch or the post office where you maintain the PPF account and ask for the account transfer request form.
2. 2. Fill in details of your PPF account and that of the new bank, including name, and address of the branch where you want to transfer.
3. 3. Submit the transfer request form to the bank where you are maintaining the account. The new bank (where the account is to be transferred) may also initiate the process.
4. 4. Take the acknowledgement receipt to keep a record.
5. 5. The bank or post office, where you have the PPF account will verify the details and initiate the transfer process.
6. 6. It will send a certified copy of the PPF account, account opening form, passbook, nomination form , specimen signature of the account holder and cheque or demand draft for the outstanding amount to the new bank.
7. 7. Once checked the new bank will notify the account holder.
8. 8. In case of change in KYC the new bank may also ask the account holder to fill up a new account opening form.
9. 9. The new bank will open a PPF account and transfer the balance in it.
1010. The entire process could take up to a month.
Source: outlook Money. nov. 2023
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