Public Provident Fund (PPF) is one of the most reliable investment avenues for a large section of Indian citizens. With the ease and reliability of online payments, you can invest in PPF in just a few clicks. The scheme is a safe investment option while it is also easily accessible online at any time. It enjoys complete support from the Government of India and is not prone to any market risks. The government announces interest rates on PPF investments, currently, it is 7.1%. Contributions to PPF are exempt from tax under Section 80C of the Income Tax Act. You can avail the scheme through Indian banks or post offices in your area. Gaining online access to your PPF account allows you to check your balance and make PPF Online Payment.
PPF Payment Methods
The investment amount can be deposited into your PPF account through the following methods of payment:
Via cheque/ cash at the Post Office/ Bank
The PPF contribution can be deposited by cheque or cash at the bank or post office. To make payments at the bank you should fill in Form B with all necessary details and submit it. You can also pay the amount at your nearest post office. In case you are making a payment via cheques then the cheque should be in favor of the Postmaster. When depositing a cheque, make sure the name of the account holder is written in full on it.
You also have to fill in complete details in the pay-in slip available at the post office. It collects information such as PPF account number, customer ID, and post office location where you are depositing the cheque. The date and amount of deposit reflect on your PPF passbook when you update it.
PPF Online Payment via Mobile Banking
Mobile Banking is a convenient way of making PF online payment. It also helps save your time. Banks have mobile applications that you can use on your mobile phone. It allows you to perform regular banking functions from the comfort of your home. You can also use the app to make a deposit into your PPF account. Firstly, you must link your savings account with the PPF account to process online payments. Next, you can transfer funds from the linked savings account against your PPF deposits.
PPF Online Payment via NEFT
National Electronic Funds Transfer (NEFT) is a way to quickly transfer funds from one account to another. You can use the facility for PF online payment. You should use this process to deposit funds as it is easier than using cash or cheques. NEFT is a highly secure payment method, it is even more secure than wire transfers. Though the process is simple, there are some prerequisites to using NEFT. For example, you are transferring money from an individual savings bank account into a PPF. Here, both banks must have NEFT facilities available to complete the transaction.
Firstly, you must log on to your net banking account. Next, you have to add your bank’s IFSC code and your PPF account number. Finally, you must add the PPF account as a beneficiary to transfer money through NEFT.
Public Provident Fund (PPF) Online Payment via ECS System
ECS or Electronic Clearance Service helps you automatically deposit money into your PPF account online. You can issue standing instructions to the bank for an ECS Mandate. Once you activate this service the bank will transfer a fixed sum of money periodically. The debit will take place from your primary checking or savings accounts. It ensures you do not forget the debt repayment. The facility is available on both intra bank transactions (between two banks) as well as interbank transactions (with one bank). Transaction of money takes place on the specified date as per your standing instructions.
Public Provident Fund (PPF) Payment Rules
- You can not transfer your PPF account to another person.
- Transfer of a PPF account is only possible from the bank to the post office or another bank or branch.
- You can have only a single PPF account in your name.
- For opening your PPF account you must deposit a minimum sum of Rs. 500.
- NRIs (non-resident Indians) cannot open PPF accounts in India.
- You can extend the 15-year tenure for PPF investment by another duration of five years.