How to Pay PPF online

PPF Online payment modes? Want to know how to do that? Yes, you can pay PPF online. PPF is a tried-and-true investing option for a huge segment of Indian residents. You might be accustomed to making a PPF payment in person, there are various methods for paying PPF contributions online too. The process of how to pay PPF online is not too complicated. Thus, allowing you to easily manage your investments with no problems.

The Indian government fully supports the PPF plan, and there are zero dangers related to it. Presently, the PPF interest rate is 8 percent annually. The payments paid for the plan, as well as the interest produced from it, are totally tax deductible by Section 80C of the 1961 Act.

Read PPF Interest Rates for FY 2022-23 (October-December).

PPF online payment: How to do it?

Wondering how to PPF online? Prior to understanding further how to pay your PPF online, you need first understand the different ways how to pay PPF online. These are some techniques on how to pay PPF:

• PPF Online Payment: By cash or cheque at the postal office or bank

The traditional way to pay for PPF contributions is with cash or cheque. To make these transactions by any of these methods, you must go to your bank or local postal office. Form B must be filled out completely prior to your submission. If one pays by check, the cheque must be prepared in the names of the account holders of PPF if the payments are processed at any bank. Cheques issued by postal offices must also bear the names of the Postal office master. However, the account holder’s name, PPF no, and postal office name must all be included on the cheques. The deposit date will also be present on the PPF account. The date of the cheque presentation will also appear. You will also need to update your passbook.

• PPF Online Payment: Through mobile banking

It is an excellent method of making PPF account payments online. An individual who uses the mobile phone app of the bank can access their accounts online. An individual can utilize this app in making PPF payments. An I individual, however, only can make the payments if their PPF account gets connected to the saving account in the issue. As a result, an individual must connect their accounts before payment processing.

• PPF Online Payment: Through National Electronic Funds Transfer/ NEFT

A method for making PPF payments is through National Electronic Funds Transfer or NEFT. PPF payments easily can get moved from one bank account to the other. An individual should employ NEFT in such situations. This transaction involves money being transferred to the PPF account from the saving bank account. Confirm with your financial institution to verify whether the NEFT service is available. An individual will also need to know the IFSC code and account number of the PPF. The banks need to have NEFT arrangements in place, and the transfer option is only available for intrabank and interbank transfers.

• PPF Online Payment: Through Electronic Clearing System or ECS System

The procedure of transferring a set amount of funds from a bank account to a different one on a regular basis is known as an ECS or Electronic Clearing System.  It is accessible for PPF accounts, and an individual must visit his bank to activate the service concern. When engaged, funds will be immediately withdrawn from the banking account and put in the PPF account. Electronic Clearing System handles interbank and intrabank transactions.

• PPF Online Payment: Standing Instructions

So, standing instructions refer to the method by which an individual advises a bank on the funds’ transfer to his PPF account from the bank. An individual may effortlessly move monies from their bank accounts to their PPF accounts using these procedures. Standing instructions can be delivered each month for a duration ranging from 1 month- 1 year.

Critical Issues To Evaluate

• Individuals are not permitted to transfer their PPF accounts. Nominees will not be authorized to retain the PPF account in the name of the deceased account holder or subscriber.
• Individuals are able to modify their names on their PPF accounts after being married by submitting the proper documentation.
• It is only feasible to transfer a PPF account from one account office to another.
• You are only permitted to have 1 PPF account in your personal name. Minors may have additional accounts created on their behalf.
• Establishing PPF accounts necessitates the submission of numerous papers. These documents include copies of the PAN Card, evidence of ID and residency, a nomination form, and a passport-sized photograph, as well as the PPF account opening form.
• The minimum level of deposit of Rs. 100 is required to create a PPF account.
• NRIs are not allowed to create PPF accounts.
• Minors’ PPF accounts can only be created in bank or postal office locations. The guardians may only create it offline, not online.
• The PPF investment term of 15 years can be extended by additional five years.
• Aadhar data are not required for establishing PPF accounts.
• An application can be used to modify the nomination.

What happens if you miss PPF online payments?

Annual PPF payments are frequently missed by some individuals. One of the causes is a lack of funds in the initial saving bank account where the funds will be moved to the PPF account. Individuals should pay the relevant penalty for the rejected payment through ECS.  For offline EPF payments, if you submit a cheque, an inadequate balance in the account and a discrepancy in the signature are two primary reasons for missing the PPF payments. For cases like these, the bank that issued the cheque would be liable for charging the fee via charges for bounced cheques.

If you fail to meet the PPF’s minimum yearly deposit requirement of Rs. 500, your account will get terminated. In such cases, you may revive the account by paying a fine of Rs. 50 as well as Rs. 500/- for annually failing to meet the minimal amount of PPF payment for the PPF account.

Conclusion? 

PPF Online Payment can get done via the method mentioned above. Easy peasy, right? 

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