Open Central Bank of India PPF Account Online – 2024

Central Bank of India is a Mumbai-based public sector bank, offering various banking products and services to customers. One such option among its offerings is the Public Provident Fund (PPF) account. The Central Bank of India PPF account provides substantial returns and income tax benefits under Section 80C of the Income Tax Act. 

This comprehensive blog aims to help you gain an understanding of the various features and benefits of opening a PPF account in the Central Bank of India.

What Is a Central Bank of India PPF Account?

The Public Provident Fund (PPF) is a savings scheme sponsored by the Government of India. Opening a PPF account with the Central Bank allows individuals to channel their idle funds, ensuring a secure future. It aids individuals in accumulating a substantial corpus over 15 years while providing support through tax rebates. 

Key Features of Central Bank Public Provident Fund Account

Here are some key features of the Central Bank PPF account that you need to know. 

1. Nomination Facilities

The Central Bank PPF account comes with nomination facilities, allowing an account holder to nominate one or more individuals. In case an account holder dies, his/her nominee(s) can further choose to transfer that PPF account under their name. However, they will not be allowed to contribute to its existing balance. 

2. Tenure

All account holders are required to keep their PPF deposit locked for a tenure of 15 years with the Central Bank. This term can be extended by blocks of 5 years without any upper limits. Additionally, the Central Bank also allows you to choose not to contribute any additional amount to your sum during this extension period. 

3. Account Transfer

Under this account, you can also choose to transfer your existing investment to a post office or any other bank. You can also transfer your Central Bank PPF account from one branch to another.

4. Premature Withdrawal and Closure Policies

Premature withdrawals are allowed from this account after the completion of its sixth year. You can also prematurely close your PPF account upon completing 5 years of the lock-in period. In such cases, your withdrawal amount is calculated at 1% less than the prevailing interest rate.

5. Deposit Amount and Frequency

At maximum, you can deposit an annual amount of ₹1,50,000 in a single PPF account. You can deposit this amount in any number of instalments in the given financial year in multiples of ₹50. Additionally, if an individual holds their PPF account in his/her name and their minor’s name, then he/she can contribute a combined maximum contribution of ₹1,50,000 in both accounts.

Central Bank of India PPF Interest Rates

The applicable interest rate of a PPF account offered by Indian banks is decided by the Ministry of Finance, Government of India. The latest CBI PPF interest rate for the year 2023 is 7.1%.

How to Open a PPF Account in Central Bank Online?

The PPF account with the Central Bank can be opened online through the bank’s net banking portal or mobile banking app. 

How to Open a PPF Account in Central Bank Offline?

You can open your PPF account at the Central Bank of India offline. Here’s how to do so. 

• Step 1: Fill in all the required forms, including the account opening form (PPF Form A), Pay-in Slip form (Form B), and Nomination Form (Form E). 
• Step 2: Submit the forms to your nearest branch. 

Your PPF account will open after a review and approval of your application.

Documents Required to Open a PPF Account in the Central Bank

You can open your PPF account with the Central Bank of India by visiting their nearest branch, where you will be asked to bring the following documents.

1. PAN Card
2. ID Proof (Aadhaar, Voter ID, Driving Licence)
3. Address Proof (Utility Bills, Passport, Bank Statement)
4. 2 Passport-size Photographs

Eligibility to Open a PPF Account in the Central Bank

Before applying for a Central Bank of India PPF account, you need to check if you are eligible according to the bank’s criteria. 

1. Any resident Indian aged above 18 is eligible
2. Minors are required to be represented by their legal or natural guardian

Central Bank PPF Withdrawal Rules

Take note of the following rules before withdrawing your PPF investment from the Central Bank of India. 

1. You can withdraw only once after 5 years excluding the year of account opening.
2. Withdrawal can be up to 50% of your balance at the end of 4th year or preceding year, whichever is lower. 

Central Bank PPF Formula and Calculation

Individuals can calculate the maturity value of their PPF account using the given below mathematical formula. 

F = P [({(1+i) ^n}-1)/i]

where,

• F: Maturity Value of PPF
• P: Annual Instalments
• i: Rate of Interest
• n: Total number of years

Let us understand this formula with the help of an example. Imagine you want to invest ₹20,000 in the Central Bank of India PPF account for 15 years. By putting these values into the formula, you can calculate the maturity value of such an investment. 

F = 20,000 [({(1+7.1) ^15}-1)/7.1] = ₹5,42,428. 

How to Use a Central Bank PPF Calculator? 

Here is a stepwise process you need to follow in order to determine the maturity value of your PPF investment using an online PPF calculator. 

• Step 1: Enter your yearly investment or use the slider to input the amount accordingly. 
• Step 2: Provide the period/tenure of your investments. 

Once you go through the above-mentioned steps, the maturity amount of your PPF investment will be displayed on the screen.

Extension of Central Bank PPF Account 

The Central Bank of India allows account holders to extend their account for further blocks of 5 years each after completing the initial lock-in period. For this, you need to provide an extension form to the bank within a year from the date of completion of your tenure. However, you cannot extend a discontinued account.

In extended accounts with deposits, you can withdraw once every year to a maximum limit of 60% of your balance credit after completing your 5-year extension block. 

Things to Note While Opening Central Bank of India PPF Account

There are several considerations to keep in mind when opening your Central Bank of India PPF account, some of which are discussed below. 

1. In case of the death of the primary account holder, the Central Bank of India will close the PPF account, thereby disallowing the nominee or legal heir to continue the deposits into the account.
2. In case of death, the PPF rate of interest will be paid till the end of the preceding month when the account is closed.

How to Transfer a Central Bank PPF Account? 

The following is a step-by-step guide on how to transfer your PPF account from the post office to the Central Bank of India.

• Step 1: Fill out the form at your Post Office for PPF account transfer.
• Step 2: Complete your payment.
• Step 3: Submit a written application for the transfer and the duly filled transfer form to your post office to initiate your transfer.

Upon receiving a cheque with the complete transferred amount, the Central Bank will be notified of your request, and your account at the post office will be closed.

Loan Against Central Bank PPF

With a Central Bank of India PPF account, you can avail a loan against the deposited amount after the 3rd year of the lock-in period. Through this bank facility, you can avail up to 25% of your total balance in the PPF account.

Final Word

Investing regularly into your Central Bank of India PPF account will let you accumulate a considerable amount by the end of 15 years of tenure. Hopefully, now you are well aware of the process of opening and managing the bank’s PPF account along with a clear idea of how to address matters related to beneficiaries, nominees, and various other aspects. 

However, before giving priority to this account, ensure to verify the applicable interest rate as it is subject to quarterly changes. 

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.