IDBI Bank Account – Open PPF Account Online in 2024

Established in the year 1964, IDBI is a government-backed financial institution, offering various services. If you wish to open a PPF account, you can fill out an IDBI PPF account application form via net banking and even submit it online. 

PPF investments are fully exempted from tax liabilities. Also, it is easy to maintain an IDBI PPF account as it requires only a ₹500 contribution yearly to keep the account active. 

In the following table you can check out some highlights of an IDBI Bank PPF account:

What is an IDBI Bank PPF Account?

The Central Government has authorised IDBI Bank to accept enrolment for PPF through its 675 branches distributed across India. After you have opened a PPF account with IDBI Bank, you can opt for facilities like a loan, premature withdrawal and extension of the investment.  

The interest on your PPF investment is paid out on 31st March each year. To ensure accessibility you must add the nomination details by submitting Form E. 

Key Features of IDBI Bank Public Provident Fund Account

Following are some of the salient features of an IDBI PPF account:

• If you are not enlisted under the EPF scheme then the PPF investments can be highly beneficial as it offers similar advantages to a provident fund.
• The mandatory initial tenure of an IDBI bank PPF account is 15 years. Later on, you can voluntarily extend this tenure by one or more five-year blocks.
• Each year you can invest up to ₹1.5 lakhs. Whereas, the minimum contribution should be ₹500 to keep your account active.
• Currently, the IDBI Bank offers 7.1% interest to all its PPF account holders.
• PPF interest calculation considers the minimum balance available in your account between the 5th and the end date of each month.
• Both your PPF investment and the accrued interest are eligible for tax exemption under Section 80C of the IT Act. Under this regulation, tax exemption is allowed for up to ₹1.5 Lakhs earned in a fiscal year.
• Accrued interest is reflected on your PPF account on 31st March every year.
• IDBI Bank enables people to apply for a loan against their PPF investment. 

IDBI Bank PPF Interest Rates

As per the RBI norms, PPF interest rates are the same across all banks. However, the Central Government evaluates this rate based on various factors. Hence, it may be revised at the end of the quarter. 

How to Open a PPF Account in IDBI Bank Online?

Follow the below-mentioned procedure for IDBI Bank PPF account opening online:

• Step 1: Move to the IDBI Bank net banking portal and log in using your credentials.
• Step 2: Duly fill out the IDBI Bank PPF account opening form.
• Step 3: Take a printout of the application form
• Step 4: Submit the application form along with the necessary documents to your Home Branch. 

After completing these steps please wait for the bank’s confirmation status patiently. Once your PPF account is active, you will receive an SMS verification on your bank-registered phone number.

How to Open a PPF Account in IDBI Bank Offline?

Initiating an IDBI PPF account offline is possible too. To do this, you must follow the steps below:

• Step 1: Visit the nearest IDBI branch and ask for a PPF opening form. 
• Step 2: Carefully fill out the application form and attach the necessary documents.
• Step 3: Attach your passport-size photographs in the relevant field(s).
• Step 4: Submit the papers to authorised bank personnel. 

Now, similarly, as an online applicant, you have to wait for the SMS confirmation from the bank’s end.

How to Login to the IDBI Bank PPF Account?

First, ensure that the net banking facility is enabled for your savings accounts linked with the PPF. Once done, follow these steps to access your PPF account linked with IDBI Bank:

• Step 1: Navigate to your IDBI Internet Banking portal.
• Step 2: Enter your banking ID and password to log in.
• Step 3: Next, move to the PPF account tab.

Once done, you will be able to details of your PPF account. You can even see the PPF account details from the IDBI Bank GO Mobile+ app. For any related assistance feel free to reach out to the bank officials in the first instance. 

Documents Required to Open a PPF Account in IDBI Bank

You must present the following documents along with a duly filled PPF account opening form when opening an IDBI Bank PPF account:

• ID proof documents like an Aadhaar card, PAN card, driving licence, voter ID card, NREGA job card, or Passport
• Documents supporting your address proof like any utility bill, latest house lease agreement,  Aadhaar card, or  photocopy of bank passbook
• A passport-size photo
• Signature proof like a self-signed cheque, photo ID card, passport, Government ID card, etc.

Note: If you are trying to open a minor PPF account, then you must submit the account holder’s birth certificate. Also, the school leaving certificate is accepted as a valid document in this case. 

Eligibility to Open a PPF Account in IDBI Bank

Please go through the upcoming section to know the PPF account opening eligibility details for IDBI customers:

• You must have a valid PAN card.
• A person aged above 18 years old can contribute to the PPF account 
• Parents or legal guardians can contribute on behalf of a minor or person with an unsound mind.
• You cannot open a joint PPF account.
• HUFs and NRIs cannot apply for a PPF account. 

Note: If you are investing in PPF on behalf of your child then such investments are clubbed to your personal PPF. It is to ensure nobody gets to exploit the maximum limit of PPF investment for tax-saving purposes. 

IDBI Bank PPF Withdrawal Rules

Several norms are imposed on a PPF withdrawal. So, if you are planning to open an IDBI PPF account, you must be aware of the withdrawal procedure, premature withdrawal consequences, taxability, etc. 

• Here are some of the regulations that have been summed up for your clear understanding:
• You can withdraw the full deposited amount along with the applicable interest after the 15-year tenure has been met.

Also, after 15 years, you can withdraw up to 50% of the accumulated balance as a partial withdrawal with no additional criteria. 

All interested candidates should note that the premature closure of PPF is not allowed by the IDBI Bank as long as the depositor is alive. However, for particular instances like a medical emergency, you can submit a written request to the bank to withdraw the entire or partial amount. 

IDBI Bank PPF Formula & Calculation

If you are confused about the maturity amount after opening a PPF account via IDBI Bank, you can refer to this formula:

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

Here F stands for the maturity sum. Whereas P refers to the annual instalments, i denotes interest rate and n is the total number of years. 

Instead of trying out this manual calculation, you can use the online PPF calculator for IDBI Bank to get precise results. 

How to Use an IDBI Bank PPF Calculator?

Here is the step-by-step guidance on how to use an online calculator for your IDBI PPF account:

• Step 1: Move to the official website of online PPF calculator.
• Step 2: Specify your annual investment either manually or by using the sliders.
• Step 3: Enter the tenure of your PPF investment.

Once done, you can see the maturity amount and take note of it as the calculator automatically shows results based on the current PPF rate.

Steps to Access IDBI Bank PPF Passbook Online 

To view the transactions involving your PPF account, first, you must activate IDBI Bank’s mPassbook service. 

Here are the steps to accomplish the task:

• Step 1: Download the ‘mPassbook’ app using the App Store or Play Store. 
• Step 2: Enter the account details of your already-activated PPF account.
• Step 3: Now you can track all the transactions by accessing the virtual passbook. 

Steps to Check IDBI Bank PPF Balance 

Primarily, you may track the PPF balance following both offline and online channels. Here’s how:

1. Method 1: Offline 

The steps include:

• Step 1: Visit the concerned branch physically.
• Step 2: Raise an enquiry to the concerned official.

2. Method 2: Online

The steps are as follows:

• Step 1: Log in to the bank account with which your PPF is linked.
• Step 2: Navigate to the PPF tab containing all the necessary details.

After that, you will be easily able to see the latest account balance, the amount of interest added and all the transactions made monthwise. 

How to Download IDBI Bank PPF Account Statement?

You can download the account statement for an IDBI PPF account in two ways:

1. Via the Passbook App

• Step 1: Install the app on your smartphone.
• Step 2: Complete the login process by entering the credentials.
• Step 3: Once done, you will receive an OTP. Enter it. 
• Step 4: Click on ‘Proceed’ to continue to the next step.
• Step 5: Navigate to ‘View Account Statement’ and initiate a download when needed.

2. Via the Official Website

• Step 1: Access the net banking portal of the IDBI Bank.
• Step 2: Complete a successful login by entering the account ID and password.
• Step 3: Choose the option ‘Operative Accounts’.
• Step 4: Go through the list of active accounts.
• Step 5: Click on the PPF account and navigate to the ‘Account Statement’ tab. 
• Step 6: Proceed to download the updated statement. 

Extension of IDBI Bank PPF Account 

You can extend the tenure of your PPF account by duly filling out Form 4. It is basically a declaration form that you can sign to extend your PPF tenure for another 5 years. 

Things to Note While Opening IDBI Bank PPF Account

These are some things to know before opening an IDBI PPF account:

• You can fill up the Form E to add nomination particulars for your PPF account. A  maximum of 4 people can be added under the Nominee(s) column.
• One can voluntarily withdraw the Form F to assign a percentage of shares for each nominee.
• Later on, you can shift the PPF account to any other bank or post office or even any other branch of the IDBI Bank.
• After its maturity, you can simply retain the corpus without further contributions. You will continue receiving interests as applicable.

How to Transfer IDBI Bank PPF Account?

Transferring your IDBI PPF account is possible by following these steps:

• Step 1: Download the PPF transfer application from the official website of IDBI.
• Step 2: Next, you have to take out a print and fill it out.
• Step 3: Finally, submit it to the concerned branch. 

Loan Against IDBI Bank PPF

You can apply for a loan amount of up to 25% of the PPF balance. This facility is extended to customers holding a PPF account of less than 6 years. For instance, you may opt for a loan between the third and fifth year of opening the account. 

The interest rate applicable for such loans is 1% greater than the interest income of your PPF account. Before, 12th December 2019, this rate had been 2% more than the PPF interest. 

Final Word

Opening an IDBI Bank PPF account is advantageous in many ways. It allows you to save and grow your wealth steadily in the long run. Plus, you get many attractive features which make PPF account management a lot easier. 

FAQs

Disclaimer

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