- Date : 30/04/2023
- Read: 4 mins
A look at how to make a Quick Transfer from a bank account to post office accounts, PPF or SSY without adding beneficiary
Earlier people used to visit post offices and bank branches to deposit in popular government-backed and post office schemes. Gradually, the digitisation of the banking system meant that you could save in Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) etc. through netbanking and mobile platforms as well. Many people have been using RTGS and NEFT to transfer their savings to these savings schemes.
Online Saving Becomes Easier
The Ministry of Communications recently announced in its circular (SB order number 09/2023) that contributions to these saving schemes can now be made online even without adding a beneficiary.
The ministry mentioned that existing awareness of these facilities among account holders was found to be inadequate. Accordingly, it has decided to circulate the process of transferring funds from bank accounts to post office/PPF/SSY accounts.
The Online Transfer Process
In the new quick transfer process, you can transfer funds from your bank account to the aforementioned PPF or Sukanya Samriddhi accounts, and post office savings accounts. The process for the same is as follows:
- Log in to the netbanking profile of your bank account,
- Click on the Payment or Money transfer option,
- Among the different payment options, select the Quick Transfer option, which doesn’t require the “add beneficiary” step,
- Enter the beneficiary name,
- Enter the post office savings/PPF/SSA account number,
- In the IDFC code field, enter IPOS0000DOP,
- Select transfer mode as NEFT,
- Enter the amount you wish to deposit,
- Select the purpose as “deposit/investment”,
- Accept the terms and conditions, click the submit button and confirm,
- Enter the OTP received on your registered mobile number and click the confirm button again.
Do note that you can continue to make online fund transfers to these savings accounts by adding a beneficiary too. To do so, you have to carry out a few additional steps,
- In the Payment/Transfer tab of your netbanking profile, select the “Add and Manage Beneficiary” option,
- Select “other beneficiary” and continue the steps mentioned above, starting with adding the beneficiary's name.
Points to Keep in Mind
While this will simplify your efforts towards adding funds to your saving accounts, SSY or PPF account holders must also keep a few things in mind.
- Before adding funds to your SSY and PPF accounts, ensure that the PPF or SSY account doesn’t have any pending subscriptions from previous years. Defaults, if any, must be deposited in a post office with the core banking system.
- If your PPF account has matured, the account extension form and passbook must be submitted at the post office where the post office small savings schemes are maintained. This must be done within one year of maturity.
- Fund transfers to SSY and PPF cannot exceed Rs 1.5 lakh in a financial year and must be in multiples of Rs 50.
- If there is a failure of the NEFT transaction due to technical causes, the amount is credited back to the bank account within one working day.
PO-based saving schemes have been popular among older generations as a safe mode of saving. However, with digital transfers, even the younger generations are now encouraged to add these schemes as a part of their portfolio. With the post office mobile app already in place for the tech-savvy generation, the new quick transfer facility further eases their efforts towards PPF, SSY and post-office-based savings.