Keep aside the cheque book, contribute to PPF via online mode

With the banks on a holiday run, there will be an impatient crowd as the branches open for business on April 5. To pay your Public Provident Fund (PPF) early, you no longer need to step into overcrowded branches testing your patience. You can make your PPF contribution online from the comfort of your home.

Even in this age of falling interest rates and a galloping stock market, PPF has remained a favourite and much-recommended long-term fixed income saving instrument of almost all middle-class individuals and financial advisors.

Almost all banks allow online contributions to PPF through the NEFT route.

The banks that offer this facility to customers include private banks such as HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, YES Bank and public sector banks such as State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India and UCO Bank.

Even if you have a PPF account in post offices ,you can transfer money without visiting the premises. But you need to have an account in India Post Payments Bank (IPPB). The electronic transfer would be made through this IPPB account.

Apart from NEFT, one can also instruct the bank for ECS mode.

NEFT mode

NEFT or National Electronic Funds Transfer is a method for the transfer of funds between bank accounts.

To conduct this transaction one just needs the PPF account number and IFSC of the bank branch with which the PPF account is held.

If the system asks for “type of account” and there is no provision for PPF account, you have to select “savings account” and type in your PPF account number.

As in other NEFT transactions, you would get a confirmation message and code on the mobile number registered with the bank.

In case of your PPF and savings accounts are in two different banks then you must have IFSC code of both and both must have NEFT-enabled transfer method.

But at present RTGS, IMPS and UPI transfers are not available in case of PPF online transfer methods.

ECS Mandate

One can also opt for ECS mandate to make PPF contributions. It would mandate periodic transfer to your PPF account.

If you leave a standing instruction with the bank where your savings account is maintained, the predetermined amount will automatically get deposited to your PPF account.

But to initiate this process you have to visit your bank for the first time, fill up the ECS mandate form and submit it.

The other thing to be ensured is that your savings account should have the sufficient balance for the deposit.