Many people after opening an account at some place in some branch of bank or post office feel the urgency to shift it somewhere else. They wish to change their branches of the bank or sometimes desire to change the bank entirely. It will be only good to discuss the transferring process of the Public Provident Fund Account from Post Office or from a bank to another Post office or bank.
Reasons for transferring the Public Provident Fund Account
There are many reasons due to which wants to change or transfer her or his PPF Account. Whenever one changes her or his house then there is a gut feeling that one should move her or his account to the nearest bank. This is because there are lots and lots of facilities if the bank is near to the account holder. The account holder can go and withdraw an amount from her or his account as per whims and desires. One can easily update the bank passbook and prepare the Bank Reconciliation Statement (BRS) easily. These kinds of facilities add to the comfort of people. That is why whenever people change location from one place to another. Whether it is one colony to another, one city to another, or one state to another, people always have in the back of their mind to change their PPF account.
It is evident to one and everyone how the commercial banks have over shadowed the Post Offices, especially in the deposition of money. These days anyone hardly approaches to the post offices to open a savings account. The commercial banks have become the more exciting and convenient option. The wish, therefore, to shift from a post office to commercial bank is very much justified.
The commercial banks offer arrays of facilities that make the life of the account holder stress-free and comfortable. They offer ATM services, Debit and Credit card services, net banking, overdraft facility, etc. These facilities are not found in postal offices. So shifting becomes an obvious choice.
Things to keep in mind while transferring PPF account
Few things that one needs to be conscious before transferring PPF account is described briefly below one by one:
- It does give a feeling that completely new account will be opened, but it is not exactly like that. The procedure of transferring the PPF account from a post office to a bank or from a bank to another bank is slightly different. Actually, it is different in many ways. The whole balance that was maintained in the post office o the bank will be transferred to another bank with all the applicable interest. Only the so called destined branch or post office will change prior after the transfer process.
- The account holder who wishes to transfer the account in the new commercial bank will not lose any interest that she or he has earned. Talking about an ideal situation, the PPF interest is calculated on lowest monthly balance.
- Moreover, the lowest monthly balance between the close of the fifth day and up to the end of the month. The interest will be calculated and will be credited to the account only once a year. That is most probably done at the end of the financial year. Therefore, the bank or the post office which is transferring the account will add the interest up to previous March 31st balance. The interest calculation from the first of April will be added by the transferring bank or post office.
Process of transferring a PPF account from one Post Office or a Bank to another Post Office or another Bank
The process of transferring a Public Provident Fund account from post office to another post office is little tedious and down winded. Let us have a close look at it:
- It is important to take the Xerox or the copy of an existing PPF Account Passbook. Later on, it can prove to be of immense benefit. It will be helpful if one finds any issue or complication in the PPF account.
- A written application needs to be submitted for the transfer. The written application should mention all the necessary details about everything, even the place where the investor wants to transfer his or her PPF account.
- Along with the written application for transfer needs, one also needs to fill the PPF Transfer Form (SB10 – b). The details of the PPF account needs to be given. Details include the account details, names and the addresses of the branch/ bank/ post office where it is held. Written application format can be seen on the internet itself.
- Verification of signature by the existing Post Office or Bank is the next major step. Once the signature is officially matched by the bank officials and declared valid, the existing bank or the post office work commences. The existing bank or the post office will arrange to send the verified original copy of the account. It will also be accompanied by an opening application, nomination form, specimen signature, etc.
- After the transfer of the transfer of the documents along with the Demand Draft received by the new bank or post office, one needs to fill the form. This form is the PPF Account Opening Form (Form A).
- With the basic form, Form A, one also needs to fill the PPF Nomination Form which is popularly known as Form E. This needs to be filled only when one hasn’t opted for nomination earlier.
- If one wishes to change the nominee one can fill the PPF Change of Nominee Form (Form F).
- As per the new rules, one also needs to submit the fresh K. Y. C documents once again. It does not matter whether the person has submitted earlier or not.
- After all of this, one will receive the new passbook from the new bank or the post office. The old balance will be shown as Balance Transfer.
- After this step, the account rests with the new bank or post office.