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Customers of Post Office Savings Bank (POSB) accounts can now open and close Public Provident Fund (PPF) accounts via the Department of Posts' (DOP's) Internet banking service. On August 30, 2022, the department released a memorandum regarding this. The Department of Posts (DOP) has said in an official circular that “In line with providing more digital transaction facilities to POSB customers, the undersigned is directed to say that online account opening and closure for Public Provident Fund (PPF) have been introduced in DOP Internet Banking. Now DOP Internet Banking users can open and close their PPF account online."
The "General Services" tab of DOP Internet Banking, according to DoP, contains the option for opening and closing a Public Provident Fund (PPF) account. The recommended procedure for opening and closing a PPF account is as follows for POSB customers.
1. Sign in to DOP Internet Banking using the login credentials and head to the ‘General Services’ section.
2. Click on the ‘Service Requests’ option and then select ‘New Requests’
3. Under the PPF account section, click on ‘Open a PPF Account’
4. Make an initial deposit of ₹500 and above in multiple of ₹50 upto ₹1,50,000/-.
5. Select PO Saving Account from which the money will be debited and click on ‘Click Here’ to read and accept the terms and conditions.
6. Click on ‘Submit Online’ and enter the transaction password.
7. Submit the application and then you can view and download the deposit receipt.
As per the guidelines set by the Department of Posts “PPF Account will be opened in the name of DOP Internet Banking user and nominee will be same as registered in linked PO Savings Account. You can login again to view the details of PPF Account opened under 'Accounts' section."
1. Login into DOP Internet Banking and go to the ‘General Services’ section.
2. Under the ‘Service Requests’ section, click on ‘New Requests’
3. Select the option ‘Closure of PPF Accounts’ and select the PPF account to be closed.
4. Select your PO Saving Account as the credit account and click on ‘Submit Online’.
5. Enter the transaction password and submit the application online.
6. Upon successful submission of the request, you can view or download the closure receipt.
According to the guidelines made by the DoP, only matured accounts can be closed using the online option, and since premature closure is permitted only in certain circumstances, PPF account holders should submit the account closure form, their passbooks, and any other pertinent documents to the concerned post office.
The interest rates on the various small-savings schemes have been maintained unchanged by the government for the second quarter ending September 30. As a result, PPF will still provide an interest rate of 7.1% yearly compounded.