How to do withdrawal/closure of your PPF account

PPF Withdrawal/closure procedure is very simple. In fact if your account is matured( say after 15 years) and you hold SBI account then within 15 minutes the matured amount can be in your bank account!

What you need to carry

  1. Passbook in original ( you can take it back after application)
  2. Your SBI bank account number( if you have it)

To do so just download and print this form given below in the attachment

Don't need any revenue stamp to be carried.

Get your passbook printed before you close your account.

If you ever done partial withdrawals then check whether calculations have been done correctly or not.

What is Indian Demand Draft

A Sample Demand Draft

Click to zoom: Yes Bank Demand Draft

The Demand Draft is an instrument used to transfer payments from one bank account to another. Demand Draft also is like cash, but much more secured than cash.

Some secured features are:

  • Extremely unlikely to be stolen and used
  • No chance of fake notes circulating in India
  • Can be encashed only by the person on whom it is issued
  • Can be easily carried, no threat to life due to robbers when carried
  • Can be safely sent by courier or post
  • Can be easily cancelled
  • Sender can be easily identified

It is quite popular instrument. Also it's the preferred method of payment for applying any admission in institutes, paying fees, applying for subscriptions etc.

The method of filling a Demand draft

We have to provide certain information to the bank for buying a DD. For this we need to fill in an application-form which asks for the following information:

* The type of DD needed.
* The mode in which the money is paid i.e. through a bank account or in cash or cheque.
* The mode in which you will pay money to the bank i.e. by debiting to your account or by cash.
* The concerned place where the money is to be paid.
* Name of the recipient.
* The amount.

The Demand draft for the amount will be provided by the counter clerk when we present the application form along with the cheque on our account or if cash is deposited for the same amount.

Note: Some bank allow only customer to issue Demand Drafts.

Things to be noted while handling a Demand Draft.

1. The particulars like the name of the beneficiary, amount, and the place where payable etc. in the DD should be the same as what we have filled in the application form.
2. The spelling of the beneficiary’s name should be exactly the same.
3. We must get the Demand Draft crossed for security.
4. If the DD amount is more than Rs. 50,000 then the PAN number will be necessary.
5. The charge for taking a demand draft varies with the bank. If we have to take the DD for a large sum then it is better to reach for the bank which charges less.

Now a days DD can be ordered online too. This facility can be availed if you have online access to your bank accounts. If you are an NRI you can avail this facility.

Useful links(demand draft charges):

  • ICICI Bank DD
  • ICICI Bank DD charges
  • HDFC Bank Demand Draft faq
  • SBI Demand Draft
  • PNB DD charges

Comfort of Ordering Demand Draft

In India currently it is somewhat difficult to order DD's. You'll have to stand in long queues, especially if you going to any PSU banks like SBI. Be ready to shell you 1-2 hours in PSU banks in India.

There no online services to the comfort of ordinary public who can order small amount demand drafts and send it instantly. However banks have started giving online DD ordering facility. But it is cumbersome.


Currently charges for Demand Draft vary. However among private sector banks it is competitive. DD's in the higher range cost you Rs 2/per 1000 Rupees of DD made. If you order DD through internet it'll cost less than ordering from the bank clerk in the private banks, but you'll need to pay the courier charges. If you're having account with SBI and ordering through internet then it is coming out to be cheapest amount all banks. I've an ICICI bank salary account and they are giving up Rs. 25000 DD per month free of cost. Also some banks charge you extra buck if you are not a bank account holder. In general lowest cost of DD will not be less than Rs. 50.

New CTS 2013 Cheque Guidelines - You want to know!

As per the RBI's new check book guidelines from 2013 of Cheque Truncation System (CTS) effective from January 2013 there is a new sort of revolution due technological advance to make paper cheque and Demand Drafts clear very fast.

Current Rate of Interest on PPF Account For 2013/2014


Since 1968 it has been changing from 5% to 12% annually.

Interest Rate Comparison of various money instruments
SNo. Instrument Name Interest Compounding
1 PPF 8.7% Annually
2 NSC 8.9%(10 year one) 6 monthly
3 Fixed Deposits 4-10%  
4 Savings Account <4-6%  
5 Mutual Fund 11% on average, long term
6 Infrastructural Bonds(Tax save) 5% approx
7 Employee Provident Fund(EPF) 8.75%  

Download SBI PPF Withdrawal Form-C

Form Title

"PPF Form C": Application for withdrawals under the public provident fund scheme, 1968

Other Form Details

  • Single whose size is bigger than A4
  • 1 place holder for revenue stamp
  • Two place holders for your signature
  • Time to fill: 5 minutes approx

Download the Form

Click on the image below to see the withdrawal form snapshot & don't print it since SBI's actual form is large and won't fit into A4 size. But here is another version of PPF Withdrawal Form-C here which you can download, fill, print and then submit at the branch.

SBI PPF Withdrawal Opening Form

Steps to Open Public Provident Fund Account in SBI


Here are the list of steps to open your account with SBI or other nationalized banks

  • Visit SBI( especially main branch or service branch)

    Best time to visit is on Mon-Friday at 10 am. Avoid going between 1pm to 3.30 pm

  • Carry along with you:
    • Your photograph ( even if you're applying on behalf of minor(less than 18 years) )
    • Your address proof & id proof
    • If you're applying for minor, carry minor's birth certificate
    • Your PAN card
    • Your SBI passbook if you want the PPF account to be linked
    • Minimum Rs. 500 to be deposited in the PPF account
  • You'll be given two forms

How it works

While in SBI after you fill up the forms(account opening & PPF deposit slip), the clerk will verify the form along with the documents you submit. Then you'll first be allotted PPF account number from computer. The clerk will handover the account opening form to you and you'll need to fill up the new account number on opening form as well as the PPF deposit slip. Then you can visit the cash deposit counter and deposit the money with the slip. You'll then need it to give it to the account opening clerk who will do the remaining formalties and give you printed passbook.

Your address & contact number is of no use since government authorities never callback in India. Be careful with your signature. You'll need it in case you want to recover your account without passbook.

What you get

Stamped Deposit Receipt

You get a stamped deposit slip as a proof of your payment

Click on the image below to see how it looks

full size stamped deposit receipt

New passbook

You get a new & updated passbook. Click on the image below to see how it looks

 new SBI PPF Passbook

PPF Act, 1968 (Provident Fund Central Act)

Download the PPF 1968 Act

The main points of the 1968 rules are categorized under:

  • Limit of Subscription : How much maximum you can invest in PPF per year
  • Manner of making the subscription : Applying for new account & modes of payment and how you
  • Number of subscription: Multiples of payment in Rupees
  • Transfer of account: Transferring accounts from one bank to another
  • Issue of duplicate pass book
  • Condonation of default
  • Interest rate
  • Withdrawals from the fund
  • Loans
  • Repayment of loan & interest
  • Nomination and repayment after death of subscriber
  • Power to relax

Opening a PPF account with SBI


1Who can open PPF Account?Any Indian whether minor/adult - any one can open PPF account
2How many account one person can have?One person whether a minor/adult can have only one account at any time
3What is attractive about PPF?As of now it is one the safest instruments available. Also unlike that of NSC's interest of PPF is not subject to tax
4What is the maximum amount I can deposit in PPF account in a year You can deposit up to Rs. 70,000 per year in maximum of 12 installment which should not be less than Rs. 100 each time.
5What is the minimum amount I should deposit every year? You must deposit minimum of Rs. 500 per year, otherwise you'll need to pay penalty to regularize it
6What is the duration of PPF?15 year lock-in there. On maturity you can extend it further to 5 years.
7What is the current interest rate of PPF?Find the current rate of interest of PPF here
8How can I open PPF account in the name of my son who is minor?Please read here account opening procedure(including minors)
9What is the maximum tax exemption I can get?Under 80C you can avail maximum of Rs. 70,000 for PPF
10Can I transfer my account to different location?Yes, just give an application on plain paper along with photostat of your passbook at your previous branch
11Can I withdraw money in the middle?Yes partial withdrawal are allowed from seventh year onwards. You can withdraw 50% of the balance of the end of fourth year or first last financial year, whichever is the lowest amount.
12Where can I download the forms We've made them available but we don't recommend printing them & using them. See the forms mentioned below.
13How much time does it take to open PPF account?At best it should take 30 minutes, if no other customers are there.

Download SBI PPF Deposit cum receipt

Click below to view the snapshot. If you want to print then download the PPF Deposit receipt/challan here.

SBI PPF Deposit cum Receipt

Download SBI PPF Account Opening Form

Form Title

Application for opening a Public Provident Fund Account Under the Public Provident Fund Scheme, 1969

Other Form Details

  • Two pages whose size is bigger than A4
  • 1 place holder for your photo
  • One place holder for your signature
  • Time to fill: 10 minutes approx

PPF Opening Form Snapshot

Click image below to see the snapshot. SBI's actual form may be larger than A4 size. Here is another printable version PPF account opening form which you can fill & print and then carry it to nearest SBI/ICICI Bank branch for submission.

SBI PPF Account Opening Form

Dormant Bank Account/Inactive Account Definition Meaning

Idle Accounts

There can be many reasons why your account is idle for some time. Job changes, transfers, relocation on foreign assignments, sickness, death, accidents etc. Now a days a new dimension is added. Most of the person now a days hold multiple bank accounts over the time. Each bank's netbanking has different login/password rules. Add to this many more login/passwords now a days that of including emails, LIC, mutual funds, subscriptions, phone accounts - only to name a few. Also some banks have two passwords, some force you to change the password in a while. The end results is that a person loses track of some of his/her bank account. May be ATM card is misplaced or password could not be recovered.

Inactive Account

If you don't use your bank account for some period then banks label it as “inactive” account. It can happen because of no activity in your account for some time typically around 1 year. This varies from bank to bank and is not mandated by RBI. This is just to safeguard bank's customers so that no fraudulent activity takes place in one's account just because one has gone abroad to a foreign country or has been transferred to another place so lost touch with one's bank account.

Once your account is declared inactive, certain limitations are placed on the customer account - for example cheque book may not be issued. To come out of inactive accounts one needs to typically carry out ATM/cheque transaction. However rules vary and you should contact bank customer care department to know about the actual procedures.

Dormant Bank Account

Only recently the dormant account period was 6 months and in 2009 RBI mandated that Dormant period should now be extended to 2 years( see this rbi notification). That means in case of lack of any activity in your account from your side your account will first turn into inactive and subsequently into a dormant one. Even more restrictions apply in dormant bank account. You can do absolutely no transactions in your dormant account.

To make it active you( and all other holders) must now visit bank with all your proofs(id proof, address proof etc). Also KYC norms will be enforced, so don't forget to carry your PAN Card.

What transactions are ignored/considered for making account dormant?


  • Savings account interest credit
  • Banking errors/corrections
  • Penalty on your account (eg., not maintaining AQB)
  • Other fixed annual charges like demat charges deduction
  • Any other transaction initiated by bank in your account


  • Any transaction initiated by any person in your account( credit/debit, cheque book charges etc)
  • Fixed deposit interest credit in your account( as per RBI notifications- 18 Feb 2009 & 22 May 2009). It'd be better to have a FD of 5 years and get interest added into your account regularly to escape from dormant account penalty

What you lose when account becomes dormant

  • Keep in mind rules keep changing, previously no interest was paid on the account balance once your account was declared dormant, currently yes, your all interest gets added but savings account interest rate is at reduced rate
  • Banks can charge you to make your account active now. As per RBI 2009 circular:
    (ix) There should not be any charge for activation of inoperative account.
    It's clear that there is no "must" but only "should" advisory is there which is not compulsory for banks to follow.
  • Your post dated cheques(if you've given those while taking any loans) bounce affecting your credit history.
  • All credits like dividends from stocks, mutual fund may not be credited to your account
  • Your ATM/Debit cards will be cancelled and you'll not be able to use them.
  • If you are away (for example in USA) or very sick/meet an accident, then all your funds in the account will be locked up and you'll not be able to use them.
  • In case your account was below AQB when it became dormant, the bank will continue to debit charges for non-maintaining of AQB every quarter, finally leading to closure of your account without your notice, if your were not reachable

When to make regular transactions?

Previously it was 6 months of inactivity that'd make your account dormant or inoperative. Currently it's different. It can change at any time. So better do one transaction every 4 months.

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