Central Bank of India PPF Account

What is the Central Bank PPF?

The Public Provident Fund (PPF) is a government-backed savings scheme under the PPF Act, 2019. It encourages long-term wealth creation while providing tax advantages. The Central Bank of India is authorized to operate PPF accounts, offering individuals a secure investment avenue. The Central Bank PPF interest rate is a key factor for those considering this investment option.

Eligibility for Central Bank of India PPF Account

To open a Central Bank of India PPF account, you must meet the following criteria:

• Be a resident individual above 18 years of age.

• Minors can apply through their legal or natural guardian.

• Hindu Undivided Families (HUFs) and Non-Resident Indians (NRIs) are not eligible for this scheme with the Central Bank of India.

• Joint PPF accounts are not allowed.

How to Open a PPF Account in the Central Bank of India

To open a Central Bank of India PPF account, visit your nearest branch and submit the following forms:

• Form A – Account opening form

• Form B – Pay-in-slip

• Form E – Nomination slip

You'll also need to provide these documents:

• PAN Card

• ID proof

• Address proof

• Two passport-sized photographs

• Aadhaar card

The bank may request additional documents if necessary.

Features of PPF Account in Central Bank of India

• Deposit Amount and Frequency: You can open an account with as little as Rs. 100. The maximum annual deposit is Rs. 150,000, with a minimum of Rs. 500 required annually. If an individual maintains accounts for themselves and a minor, the combined maximum contribution remains Rs. 1.5 lakh.

• Tenure: The PPF deposit has a lock-in period of 15 years. It can be extended in blocks of 5 years indefinitely, even without further contributions.

• Premature Withdrawal: Withdrawals are permitted after the 6th year, subject to conditions:

  • The maximum withdrawal is 50% of the balance at the end of the 4th year preceding the year of withdrawal.

  • Alternatively, you can withdraw up to 50% of the balance at the end of the previous year, whichever is lower.

• Premature Closure Policies: Premature closure is allowed after 5 years under specific circumstances:

  • Life-threatening illness of the account holder, their dependent children, parents, or spouse.

  • Higher education expenses.

  • Change of residency.

  • Supporting documents are required. A 1% lower interest rate applies upon early closure.

• Nomination Facility: You can nominate one or more individuals for your Central Bank of India PPF account, specifying each nominee's share. In case of the account holder's death, the nominee(s) can transfer the account but cannot make further contributions to the existing balance.

• Tax Benefits: Deposits up to Rs. 1.5 lakh qualify for tax exemption under Section 80C. The returns and withdrawals are entirely tax-free.

• Account Transfer: You can transfer an existing PPF account from a post office or another bank to the Central Bank of India or vice versa. Transferring between Central Bank of India branches is also possible.

• Interest Rate: The Indian government revises the Central Bank PPF interest rate quarterly. The current interest rate for 2025 is 7.1%. Interest is calculated monthly on the lowest balance between the 5th and last day of the month. The monthly interest is added to the principal annually and also earns interest. Upon maturity, the Central Bank of India PPF interest rate is calculated using a weighted average method, considering all applicable rates during the account's tenure.

Conclusion

The PPF is a secure and reliable savings option with guaranteed returns. Understanding the features and benefits of the Central Bank of India PPF account allows individuals to make informed investment decisions.