How to Open a PPF Account Online in FY 2025: Step-by-Step Guide with e‑KYC

Introduction to PPF

The Public Provident Fund (PPF) is one of the most reliable savings schemes in India, introduced by the Government of India to encourage disciplined, long-term investments. It is especially popular among individuals who want both tax savings and assured returns without market risks.

The PPF scheme falls under the EEE category (Exempt-Exempt-Exempt). This means:

• Contributions made to PPF are eligible for deduction under Section 80C of the Income Tax Act, 1961.
• The interest earned is tax-free.
• The maturity proceeds are exempt from income tax.

In FY 2025, opening and managing a PPF account has become much simpler with online account opening facilities supported by e-KYC. This removes the hassle of paperwork and enables investors to start their PPF journey in just a few clicks.

Why Open a PPF Account?

The PPF has remained one of the most trusted savings options for decades, and for good reason. Let’s explore the main benefits:

1. Government-Backed Safety

   PPF accounts are entirely backed by the Government of India. This makes it one of the safest investment avenues, free from market fluctuations and private-sector risks.

2. Attractive Interest Rate

   The PPF interest rate is not fixed. It is revised every quarter by the Ministry of Finance. For FY 2025, the rate continues to hover around 7.1% per annum, compounded annually. This ensures steady growth while maintaining risk-free security.

3. Tax-Free Returns

   As mentioned earlier, PPF follows the EEE model of taxation. This makes it superior to many other fixed-income options where returns may be taxable.

4. Long-Term Corpus Creation

   Since the scheme comes with a 15-year lock-in period, it is an excellent option for creating a retirement corpus, funding children’s education, or meeting other long-term goals.

5. Extension Options

   After maturity, investors can extend the account in blocks of 5 years. You can choose to extend with contributions or without, depending on your financial goals.

💡 Pro tip: Many new investors make mistakes such as irregular deposits or mismanaging withdrawals. To avoid such pitfalls, check out our guide on How to Invest in PPF – Avoid These Common Mistakes.

Step-by-Step Guide: How to Open a PPF Account Online in FY 2025

Opening a PPF account online has become very straightforward thanks to Internet banking and e-KYC. Here’s a detailed process:

Step 1: Ensure You Have an Eligible Bank or Post Office Account

First, you need a savings account with a participating bank or post office that offers online PPF services. Additionally, Internet banking must be enabled.

Step 2: Log In to Internet Banking

Once logged in, navigate to the PPF services section or investment services section. Different banks may label this differently, but all provide the option to open a PPF account.

Step 3: Complete e-KYC Verification

Thanks to Aadhaar-enabled services, the entire process can be paperless. You’ll need to:

• Enter your Aadhaar number.
• Authenticate via OTP sent to your Aadhaar-linked mobile number, or use biometric verification if available.

This eliminates the need for filling out and submitting physical forms.

Step 4: Make Your First Deposit

You can open the account with as little as ₹100. Contributions can then be made in lump-sum or in installments (a minimum of ₹500 must be deposited annually to keep the account active). The maximum contribution allowed is ₹1.5 lakh per year per individual.

Step 5: Set Up Nomination

You can nominate family members to receive the proceeds in the event of unforeseen circumstances. Parents can also open PPF accounts on behalf of minors.

Step 6: Confirmation and e-Passbook

Once the process is complete, you’ll receive account confirmation. Many banks now also provide PPF e-passbook services, allowing you to monitor contributions and interest online.

Documentation Required (with e-KYC)

One of the biggest advantages of online opening is that no physical documents are required if Aadhaar e-KYC is used. You only need:

• Aadhaar card details linked to your mobile number.
• Your bank account details.
• PAN card (sometimes requested by certain banks).

If e-KYC fails for any reason, you may be asked to submit hard copies at your branch.

Deposits and Contributions

Here’s a quick look at the deposit rules for PPF:

• Minimum annual contribution: ₹500
• Maximum annual contribution: ₹1.5 lakh
• Deposits can be made in lump sum or installments (up to 12 installments in a year).
• Contributions beyond ₹1.5 lakh in a financial year will not earn interest and will not be eligible for tax benefits.

PPF Withdrawals and Loan Facility

One common doubt among investors is whether funds are completely locked in for 15 years. While the scheme encourages long-term savings with a 15-year maturity, there are flexibilities including premature closure after 5 years under specific conditions (e.g., medical emergencies, higher education, or residency changes), subject to a 1% penalty on interest:

• Partial withdrawals: Allowed from the 6th financial year onwards, subject to certain limits.
• Loan facility: From the 3rd financial year, you can take a loan against your PPF balance.

These features make PPF flexible while still maintaining its long-term nature.

Who Can Open a PPF Account?

• Any resident individual of India can open a PPF account.
• NRIs are not permitted to open new PPF accounts. However, if an individual becomes an NRI after opening the account, they can continue until maturity.
• Minors can have a PPF account opened in their name by a parent or guardian.

If you’re unsure whether PPF is right for you or if a retirement scheme like NPS might be better suited, check our detailed comparison on NPS vs PPF: Which Is the Right Long-Term Investment for You?.

Additional Insights

The PPF is often underestimated because of its lock-in period, but it offers many unique advantages. For example, the ability to extend after maturity in 5-year blocks makes it a powerful long-term wealth-building tool. To dive deeper into these hidden benefits, you can read our feature on 5 Lesser-Known Facts About Public Provident Fund.

Opening a PPF account online in FY 2025 is a hassle-free process, thanks to Internet banking and e-KYC facilities. With just Aadhaar authentication and a few clicks, you can secure your savings in a safe, government-backed scheme.

If you’re looking for a reliable, tax-efficient, and long-term savings option, PPF should definitely be on your list. But remember, while it is safe and tax-friendly, it comes with a 15-year lock-in, so plan your finances accordingly.

Learn how to make your savings grow with tax-free PPF benefits today!

Ready to Maximize Your Savings Beyond PPF?

While a PPF account ensures safe and tax-free returns under Section 80C, you can further diversify your investments with insurance and retirement solutions that also provide tax benefits.

At PNB MetLife, we offer:

• Life Insurance Plans – Get financial protection for your family while enjoying deductions under Section 80C and tax-free maturity proceeds (subject to conditions under Section 10(10D)).
• Retirement Plans – Build a long-term corpus with added tax efficiency.

💡 Try our Income Tax Calculator to see how much you can save in FY 2025-26.

Explore PNB MetLife’s tax-saving plans today and complement your PPF savings with protection and growth.