Indian Overseas Bank Deposit Slip: Fill & Download for Free

Public Provident Fund, popularly known as PPF is all time favorite investment for many retail investors. It is popular among the investors since its launch. PPF is considered as the best tax-effective investment vehicle for long term wealth creation. PPF investment is backed by Government so returns and principal are sovereign guaranteed. PPF is one investment vehicle that falls under the Exempt-Exempt-Exempt (EEE) category. This, in other words, means that all deposits made in the PPF are deductible under Section 80C of the Income Tax Act. Yearly interest earned on the account is tax-free and the accumulated amount is also exempt from tax at the time of withdrawal.Essential Features of PPF account.1. PPF is a 15-year deposit account. The account can be continued after completion of 15yrs for further blocks of 5 yrs. Once the account is continued without contribution for more than a year, the option cannot be changed.2. A person can hold only one PPF account in their name except for an account in the name of a minor child to whom he or she is a guardian. A joint account cannot be opened however nomination facility is available.3. The minimum amount that needs to be deposited is Rs 500 per year. The maximum limit is Rs 150000. Subscription should be in multiples of 5 and can be paid in a lump sum or in installment not exceeding 12 in a financial year. Penalties apply if the minimum deposit is not made in a financial year.4. The account can be opened with just Rs 100. Annual investments above Rs 1.5 lakh will not earn interest and will not be eligible for tax saving.5. The deposit into a PPF account can be made either by way of cash, cheque, Demand Draft or through an online fund transfer.6. Interest is calculated on the lowest balance available in the account between 5th of the month and the last day of the month. So it is advisable to deposit in PPF account on or before 5th of every month.7. The current interest rate is 7.1% for April to June 2020 that is compounded annually. The Finance Ministry announced the rate of interest of PPF account on a quarterly basis. The total interest in the year is added back to PPF only at the year-end. Interest is accumulated and not paid out.8. Since PPF is backed by the Indian government, it offers guaranteed, risk­-free returns as well as complete capital protection. The element of risk involved in holding a PPF account is minimal.9. In the event of the death of the account holder during the term of the scheme, the balance in the account shall be paid to the nominee or to the legal heir if the account does not have a nomination.10. A PPF account is not subject to the attachment (seizure of the account by Court order) under any decree of a court.Instituted in 1968, the objective of the PPF account is to provide a long term retirement planning to the investors. It can be opened in a designated post office or a bank branch. It can also be opened online with few banks. One is allowed to transfer a PPF account from a post office to a bank or vice versa. A person of any age can open a PPF account; even those with an EPF account can open one.How to open a PPF account?A PPF account can be opened in designated bank branches of SBI and its subsidiaries and as well as ICICI Bank, Axis Bank, HDFC Bank, Bank of Baroda,Central Bank of India, Bank of India (BOI), IDBI, Central Bank of India, Punjab National Bank, Indian Overseas Bank, and few others. It can also be opened in the post office too.Following are the documents required to open a PPF account :(i) PPF Account opening form, available at the bank branch or the Indian Post portal.(ii) ID proof that includes any of the followinga) PAN cardb) Driving licensec) Voter ID cardd) Passporte) Aadhaar ProofFor online applications, there are separate procedures for all the banks but the basic documentation and submission of application remains the same.(iii) Address proof, from any of the following:a) Telephone billb) Electricity billc) Ration cardd) Aadhaar Card(iv) Two current passport size photographs(v) Pay-in-slip at the bank branch to transfer the amount to your PPF account, or a signed cheque in favor of your PPF account.(vi) For a minor, a birth certificate may also be required as an age proofPlease note that all documents have to be self-attested, and originals have to be taken while opening the account.

Public Provident Fund, popularly known as PPF is all time favorite investment for many retail investors. It is popular amongst the investors since its launch. PPF is considered as the best tax-effective investment vehicle for long term wealth creation. PPF investment is backed by Government so returns and principal are sovereign guaranteed. PPF is one investment vehicle that falls under the Exempt-Exempt-Exempt (EEE) category. This, in other words, means that all deposits made in the PPF are deductible under Section 80C of the Income Tax Act. Yearly interest earned on the account is tax-free and the accumulated amount is also exempt from tax at the time of withdrawal.Essential Features of PPF account.1. PPF is a 15-year deposit account. The account can be continued after completion of 15yrs for further blocks of 5 yrs. Once the account is continued without contribution for more than a year, the option cannot be changed.2. A person can hold only one PPF account in their name except for an account in the name of a minor child to whom he or she is a guardian. A joint account cannot be opened however nomination facility is available.3. The minimum amount that needs to be deposited is Rs 500 per year. The maximum limit is Rs 150000. Subscription should be in multiples of 5 and can be paid in a lump sum or in installment not exceeding 12 in a financial year. Penalties apply if the minimum deposit is not made in a financial year.4. The account can be opened with just Rs 100. Annual investments above Rs 1.5 lakh will not earn interest and will not be eligible for tax saving.5. The deposit into a PPF account can be made either by way of cash, cheque, Demand Draft or through an online fund transfer.6. Interest is calculated on the lowest balance available in the account between 5th of the month and the last day of the month. So it is advisable to deposit in PPF account on or before 5th of every month.7. The current interest rate is 7.9% from 1st August 2019 that is compounded annually. The Finance Ministry announced the rate of interest of PPF account on a quarterly basis. The total interest in the year is added back to PPF only at the year-end. Interest is accumulated and not paid out.8. Since PPF is backed by the Indian government, it offers guaranteed, risk­-free returns as well as complete capital protection. The element of risk involved in holding a PPF account is minimal.9. In the event of the death of the account holder during the term of the scheme, the balance in the account shall be paid to the nominee or to the legal heir if the account does not have a nomination.10. A PPF account is not subject to the attachment (seizure of the account by Court order) under any decree of a court.Instituted in 1968, the objective of the PPF account is to provide a long term retirement planning to the investors. It can be opened in a designated post office or a bank branch. It can also be opened online with few banks. One is allowed to transfer a PPF account from a post office to a bank or vice versa. A person of any age can open a PPF account; even those with an EPF account can open one.How to open a PPF account?A PPF account can be opened in designated bank branches of SBI and its subsidiaries and as well as ICICI Bank, Axis Bank, HDFC Bank, Bank of Baroda,Central Bank of India, Bank of India (BOI), IDBI, Central Bank of India, Punjab National Bank, Indian Overseas Bank, and few others. It can also be opened in the post office too.Following are the documents required to open a PPF account :(i) PPF Account opening form, available at the bank branch or the Indian Post portal.(ii) ID proof that includes any of the following:a) PAN cardb) Driving licensec) Voter ID cardd) Passporte) Aadhaar ProofFor online applications, there are separate procedures for all the banks but the basic documentation and submission of application remains the same.(iii) Address proof, from any of the following:a) Telephone billb) Electricity billc) Ration cardd) Aadhaar Card(iv) Two current passport size photographs(v) Pay-in-slip at the bank branch to transfer the amount to your PPF account, or a signed cheque in favor of your PPF account.(vi) For a minor, a birth certificate may also be required as an age proofPlease note that all documents have to be self-attested, and originals have to be taken while opening the account.Withdrawal options: available from the PPF account.1. One withdrawal in a financial year is permissible from the seventh financial year.2. Maximum withdrawal can be 50% of the balance at the end of the fourth year or the immediately preceding year, whichever is lower.3. Premature closure of the PPF account is allowed in cases such as serious aliment, education of children and such. This shall be permitted with a penalty of a 1% reduction in interest payable on the whole deposit and only on the deposit that has completed 5 years from the date of opening.Loan facility on PPF accountAccount holders can avail of a loan facility in the 4th to a 6th year out of the amount standing to the credit in the account between the 3rd financial year to the 5th financial year.ConclusionPPF suits those investors who do not want volatility in returns akin to the equity asset class. It is for non-salaried people who are not eligible for retiral benefits. Self-employed professionals such as doctors, architects, and chartered accountants should use it to build the debt portion of their retirement nest egg. It is one of the best option available in the debt category for retirement planning. It is a long term investment avenue and with the disciplinary approach, an investor can create long term wealth easily.

The answer is crystal clear to those with a sense of economics but our political position makes it difficult to take a fair stance. There is also the dilemma of short term populism of politics vs the long term prosperity of nation. What is good for India ? I shall explain.While media today is ripe with debates on the subject, political positions make it difficult for truth to come out on TV channels. We can however look at some data & past chronology that will make it very obvious why Urjit Patel resigned. I start with the loan growth in India since early 2000 onwards till date.If you notice, the maximum loan growth happened between 2002 to 2008 by when the global ,meltdown hit us. But since we were not beaten much by the subprime derivatives in US, Manmohan govt started to give a booster dose to our economy by increasing the lending.Now here we saw the world having a lending freeze but India & China went on with the classic economics of lending their way out to glory. So all the infra companies got most of their corporate loans during that time. GMR, GVK, Lanco, Jaypee, Essar, Adani, Kingfisher (of course) amongst others. The result, India was able to create a feeling of “isolation from global crisis” although at the cost of high inflation. Same with China who managed to very quickly get on course for another round of growth after 2008.All this worked fine for both countries for some time, except for one critical element that makes sustainability of such stimulus difficult. India is not China !Chinese govt pretty much “manages” all institutions including the banking system. But love it or hate it, India is no China.Look at how the events unfolded here thru some headlines. For long the banks were “restructuring” the loans (just an euphemism for bad loans). In certain cases, they were lending more to the same entity for them to pay interest back to the bank. (Imaging you asking bank for more loan so that you can pay your EMI !!)Enter Raghuram Rajan as Governor RBI in Sept 2013:When Rajan took the helm in September 2013, the economy was declining at an annualized rate of 2 percent on quarter, consumer prices were soaring 9.8 percent,Rajan asked banks, whose lending decisions have been partly influenced by politics, to clean up their books. He has also been an outspoken critic of the government's management of social issues, particularly crony capitalism, corrupt police, and religious violence.Things changed drastically when RBI forced an asset quality review (AQR)in the second half of 2015. While total share of bad loans have continued to increase at the same pace, most restructured loans joined the category of NPAs.The former RBI chief is learnt to have said that banks extended more loans to prevent 'zombie' loans from turning non-performing assets. Ideally, projects should be restructured at such times, with banks writing down bank debt that is uncollectable, and promoters bringing in more equity, under the threat that they would otherwise lose their project. Unfortunately, until the Bankruptcy Code was enacted, bankers had little ability to threaten promoters (see later), even incompetent or unscrupulous ones, with loss of their projectRajan was single handedly responsible for acknowledgement of the huge NPAs in Indian banks & the window dressing that was going on. With that coming to an end with RBI scrutiny of books & classification of NPA norms, the NPAs showed the steady rise to a more accurate level.With that high level of NPAs, the banks started facing trouble in lending. As a result, the overall lending growth came falling to even negative levels for the corporate side. Voices of sacking rajan became pronounced as he was being blamed for “low Indian growth rates” by “suffocating the lending with high interest rates”.In May, Swamy urged Modi to sack Rajan, stating that high rates had resulted in a "collapse of industry and rise of unemployment in the economy." Rajan's foreign-educated background also became an issue.The following narrative from Hindustan Times summarises the story well.What is special about India’s banking crisis then? It is the disproportionate concentration of bad loans in the government owned banking system. Gross NPAs as percentage of total advances stood at 13.5% for Public Sector Banks (PSBs) in September 2017. The figures are less than 4% for foreign and private banks. To be sure, one could argue that higher levels of NPAs in PSBs are due to their overall dominance in India’s banking industry (60-70%). Comparing relative share of NPAs can take care of this mismatch. Relative share of NPAs in PSBs can calculated by dividing the share of PSB’s NPAs in total NPAs by share of PSB’s advances in total advances in the banking sector. This exercise shows that PSBs have had a major role in creation of India’s present banking crisis.The PSU banks were so much trouble that RBI made the statement below in one of its reports in Dec 2017:RBI’s December 2017 Financial Stability Report (FSR) says that “there will be a complete erosion of the profits of the banking sector under the scenario of a default by the topmost 3 borrowers of each bank”.PCA framework applies on banks whose capital slips below the minimum regulatory threshold of 9 per cent. These PCA banks have been starving for funds for long because of inadequate capital as government finances are too tight. These banks are not in a position to raise capital on their own.Enter Urjit Patel in Sept 2016:Thought of as a Modi govt appointee, Patel was seen to be more “accommodating” towards govt agenda of higher fiscal spending supported by exponential loan growth through PSU banks. His silence didn’t reveal much during the initial demonetization days wherein he seemed to be a tacit supporter of Modi agenda. The media however was reading it all wrong for a media shy governor.Urjit kept on surprising the govt with new data that led to the day of his resignation. Let us see some headlines of his tenure that will indicate the direction of events:He further revised the PCA norms that led to more banks slipping into the ambit. By mid 2018, 11 PSU banks were under PCA which meant that there were “dead” for borrowers as they were NOT ALLOWED to lend.The revised PCA Framework was issued on 13 April 2017 and was implemented as on 31 March 2017. As per the revised PCA guidelines released last year, if a bank enters 'Risk Threshold 3', it may be a candidate for amalgamation, reconstruction or even be wound up.And the bad news did not stop at 11 only.The Economic Times reported on 26 October that RBI has rejected the government’s proposal to ease the PCA norms for banks at its board meeting.The PCA framework puts restrictions on weaker banks on many aspects, including fresh lending and expansion, and salary hikes among others. Of the 21 state-owned banks, as many as 11 are under the PCA framework now and these banks’ NPAs hover in high double-digits, with that of IDBI Bank being the highest at close to 33% in the September 2018 quarter.The 11 banks under the PCA are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, Uco Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra. These banks together control over 20% of the credit market.If the Reserve Bank of India imposes restrictions on these new lenders in the next one month, it will bring the number of state-run banks under the PCA framework to 17.The FINAL LAP in 2018 : We all know the much hyped & stormy RBI board meet in november wherein many of us for the first time got to know that there is a RBI board that may be able to dictate terms to the governor as per the Govt command.This is what happened on this critical issue of PCA norms on Nov 19th.At the November 19 RBI stormy board meeting, the board decided to refer the issue of relaxing PCA framework for weaker banks to the Board for Financial Supervision (BFS) of the central bank.The poll-bound government feels that putting as many as half of its banks in PCA is preventing credit flow to the critical MSME sector which is highly labour intensive. That means loss of votes.This is super critical. I come back to where we started. Remember, govt wants the bank lending to increase without bounds as it creates short term “bubbles” even at the cost of high inflation. But who cares of inflation when the reckless lending creates it own flow & people get a deceived sense of increased earnings ?That’s what happened between 2004 to 08. Nobody complained of high inflation then as the incomes were going up. And who thinks of the long term ? Not the governments at least. When 2019 is looming & 50% of PSU banks can’t lend money, who will finance the elections? Certainly not the farmers. ( Farmers also want loan waivers which means more lending down the drain for banks! ) I don’t blame the govt at all. Across the nation, people want more liberal loans & create an asset bubble. Govt just accommodates to people’s wishes at the cost of long term damage. All popular govts do that, in developing nations in particular. Plus elections need financing. Middle class needs home loans & farmers need waivers as well.The writing was on the wall. Either the governor agrees to the “board” & allows the reckless lending to start again. Or keep his integrity & move on.What he did speaks a lot about his character. Silence speaks louder than words.Salutes !Edit: Many of you have also pointed to the govt raiding the RBI deposits of Rs 3.60 lac crore appx. I agree in part. However all that was be the plan B. Remember that the RBI money anyways “belongs to the nation” & after agreed buffer that RBI needs, that kitty has to reach the government. RBI can’t sit on profits for too long. It is better that money be utilised for the nation. In absence of RBI allowing PSU banks to lend, govt thought why not claim the money that “duly belongs to the govt” in an election year. This amount can wipe off the fiscal deficit & give additional room for the public spending. You know what public spending results in - More votes !Meanwhile, this is what the “Fitch rating agency” has to say about Urjit’s departure.Rating agency Fitch on Wednesday said Urjit Patel’s resignation highlighted risks to policy priorities. The government has unsuccessfully pushed the Reserve Bank of India (RBI) to relax prompt corrective action (PCA) thresholds to allow some troubled banks to step up lending. Increased government influence on the central bank could undermine the progress of the RBI’s efforts to address bad loan problems, it added.On the same lines, this is what the Economic times reported:The government wanted the RBI to relax the prompt corrective action (PCA) framework under which as many as 11 public sector banks are placed now due to enormous stressed assets. The government says the stringent norms hurt credit growth. The government had sought a special refinance window for mutual funds, NBFCs and housing finance companies; a facility for banks to raise $30 billion overseas; a relaxation in the limits on corporate bonds for foreign portfolio investors; and easier mandatory hedging requirements for infrastructure loans of less than 10 years. In the interest of long-term financial health of the country, the RBI does not want to ease controls to help government achieve short-term goals of economic growth.That leaves nothing to read between the lines.Edits in June 2019: New regime under Shaktikanta Das is in action for some time now. It is very silent as some would say. But actions speak louder than words. Let’s examine what the new dispensation has done in this short time frame:Dilution Of Prompt Corrective Action Norms : Eleven government owned banks and one private bank was under the PCA framework when Patel exited the RBI. Till now, over 6 of them have come out of the PCA . These include Bank Of India, Bank of Maharashtra, Oriental bank of commerce, Allahabad bank, Corporation bank & Dhanalaxmi Bank. Insiders know that not all requirements of coming out of PCA were met. Positive return on assets for instance was one. Now all these banks are free to re-start their lending practices as they like. Has anything changes in these banks since last restrictions ? Your guess is as good as mine.Deferral of Indian Accounting standards IndAS for bad debt: Indian accounting standards) were to come into play starting April 2019. This would have put in place a very conservative approach to bad debt accounting. These regulations have been deferred now, till further notice (not sure from whom ?)Implementation of external benchmark for home loans: The demand for a standard external benchmark has been opposed by banks widely as it reduces their discretion to price home loans almost at will based on some internal calculations. That is why you see the loan rates rise more easily than they fall. External benchmark would have brought in this transparency & removed discretion of banks. this again is deferred . You guessed it - “till further notice”.Changes to stressed assets rules (bad debt): Last week, RBI notified new rules regarding stressed assets classification. Earlier, bad debt had to be recognized as such even on one day delay of payment beyond 180 days. Now, the banks get “30 days more” to “figure out the best way forward”. Interesting, isn’t it ? Not only this, the asset can not be claimed as standard & come out of bad debt bucket when 10% of the outstanding amount is paid. Earlier, this limit was 20%. Wow - what’s coming next ? a 5% payment limit ? Or may be an asset can come out or stressed list even when the debtor “promises to pay” in future ? Possible, I think, don’t you ?Let’s see how the industry is reacting to these moves by the NEW RBI:The new guidelines considered and accepted many of the suggestions that the bankers had presented to the RBI in April, Rajnish Kumar, chairman, SBI said on MondaySo RBI accepts all most recommendations from the bankers. Wasn’t the regulator expected to regulate the banks rather than accepting “many of their suggestions?” What about one suggestion from the consumers ?“The revised prudential framework for resolution of stressed assets announced on Friday strikes a fine balance between tight regulatory timelines mandated previously for resolving stressed assets, and inordinate delays that occurred in the past when resolving and provisioning for such assets,” said rating agency CRISIL in a note on Monday.I love these credit rating folks. They are the same guys who rated DHFL as “A4+” & investment grade. Just days later, AFTER the default, the rating was downgraded as “default”. Can anything be more stupid than this ? We need the ratings to tell us the probability of default BEFORE the event. After the default, I know it is junk. Why oblige with your rating downgrades ?The saga continues. More on this as we move along.Feel free to mail or write to me on twitterHonest - Unbiased - Simplified, as always.Pls also read:Anurag Singh's answer to Is the Nationalization of banks at the root of the present banking crisis in India? Should Indian banks be privatized?References:Provision coverage ratio declines sharply for most public sector banksRBI vs Government: A timeline of events leading to Urjit Patel’s sudden resignationAll isn’t lost for banks under PCA as their retail loan pie jumps 400 bps to 19%6 more state-run banks may come under PCAAfter Dena Bank, RBI may put restrictions on 2 more lenders under PCAPace of credit growth more than doublesBig borrowing, bad debt: How India’s banking sector landed in the current crisisIndia’s Bad Loans: Here is the list of 12 companies constituting 25% of total NPAsUrjit Patel’s resignation highlights risks to policy priorities: FitchHere's what could have led to RBI Governor Urjit Patel's exitSix Months Under RBI Governor Shaktikanta Das Leaves Bankers Breathing Easier