Sunday, March 24, 2013

Transfer of PPF Account From Post Office to Nationalised Bank

A decade ago no one bothered about opening a Public Provident Fund (PPF) account. But now as the Fixed Deposit interest going down and government is withdrawing the old pension systems people are becoming aware of some stable funds so that they beat the inflation during maturity. One such fund is PPF. It gives high interest rates at the cost of tax free returns and tax exemption for deposits. Which is actually a triple benefit investment. When compared other long term investment available in the market no other investment gives such huge advantage. 

Some people already had PPF accounts held in post office but they find it very difficult to manage.

  1. Have to stand in que to deposit that too only upto 2.30PM.
  2. No online facility available.
  3. No proper legible Passbook updation
  4. No accurate interest calculation.

To overcome these hurdles one can transfer the PPF account from post office to any nationalised bank which gives the PPF facility or ICICI bank only private bank which offers PPF facility.

But what matters is no one including Post Office officials or bank officials doesnt know exactly what to do on this transfer procedure.

Follow the procedure as explained below to get prompt service.

  1. Download Form SB 10(b)
  2. Fill up the form in duplicate and submit it along with your original Post Office PPF Pass book, PAN card copy, your bank savings account Passbook along with a written request on a plain paper requesting your transfer of PPF account to the bank to the Post Master.
  3. Show the Instructions on PPF account given in the Post Office Passbook in case the post master claims that the transfer is not possible. (Usually at the first instance they will tell like that)
  4. Wait for minimum 10 days and enquire with the post office weather they transfered the PPF account to the bank.
  5. They will close the account making all the entries in passbook up-to-date. The interest upto 31st March of previous year will be added. They all the original documents available with them pertaining to your account to the bank which includes Passbook, original account opening application card, specimen signature, photo, a statement of all your transaction from the beginning along with a demand draft or cheque for the amount on closing the account.
  6. NOTE: The interest from the 1st April upto the date of closing will not be added to the cheque or draft nor be calculated by the post office. It has to be done by the bank and added to your account on 31st March of the current financial year.
  7. Usually bank will call you on receiving all the documents. But dont wait for that. Go and enquire personally.
  8. In bank you are supposed to fillup a new account opening form, nomination form and give your address proof and PAN copy.
  9. Make sure your the balance in your new PPF account is exactly the same as the closing in the Post Office.
  10. After transfer link the PPF account with your internet banking account and manage your PPF account online without going to bank.
  11. Give standing instruction for deposit into your PPF account so that you enjoy high interest since the interest in PPF is compounded annually.


  1. Your original date of opening the PPF account in post office will be the opening date in bank.
  2. Bank needs to enter the accrued interest from 1st April of current financial year upto the date of opening the account. This amount has to be entered in the coloumn as interest adjustment. This has to be done manually. (Bank officials are not aware of that)
  3. You are not supposed to loose any interest at any cost due to delay in transfer of account.
  4. All the transaction records in post office will not be reflected in your new bank passbook. So it is better to take photocopy of post office passbook before surrendering for transfer.
  5. In case you have any problem download Post Office Manual and take printout of Rule No. 153 which talks about the procedure involved in Transfer of PPF accounts from post office to bank and vice versa.
  6. The User interface of the Banks computer makes some procedure difficult. In such case ask the bank officials to call their superior. If you feel your unduly delayed of the procedure make a complaint in the website of the bank about the delay.

But important of all if you can wait for another one year with the Post Office you may get all the online benefits when India Post starts its banking service. Infosys has been assigned as the the technical solutions partner