RBI Notification – Clarification regarding reckoning of the date of deposit

RBI Notification – Clarification regarding reckoning of the date of deposit

Reserve Bank of India, DGBA, vide its Notification –  RBI/2009-10/365 DGBA.CDD. H 7530/15.02.001/2009-10 dt.March 29, 2010, has provided clarifications regarding the reckoning of the Date of  the Deposit.

Deposit into PPF Account can be made by way of

01) Cash

02)                       Local Cheque

03)                       Pay Order

04)                       Demand Draft drawn on the location where the Bank Branch is located

05)                       Outstation Cheque

06)                       Online Transfer viz NEFT

Of course, Deposits into PPF Account are not a part of the ECS cycle.

The Date of Deposit in cash of Cash has to be same day.

The issue is when the deposit is made through other methods than Cash.

If the deposit if made via Online Transfer viz NEFT, the date of deposit can be the date of the successful Online transfer.

But, what is the date of reckoning the date of deposit, if the deposit is through – Local Cheque/Pay Order/Demand Draft drawn on the location where the Bank Branch is located/Outstation Cheque ?

As per , Ministry of Finance letter No. F. 3(9)-PD/72 dated September 4, 1972, in the case of Public Provident Fund Scheme, 1968 (PPF)

  • “when a subscriber makes a deposit by local cheque or demand draft,
  • the date of tender of cheque or draft at the Accounting Office is treated as date of deposit,
  • provided the related cheque is honoured on presentation for encashment.”

However, in case of all other Small Savings Schemes of the Government of India (GoI),

  • such as, Post Office Savings Schemes (POSS),
  • as also Senior Citizens Savings Scheme, 2004 (SCSS),
  • if the money is deposited in the account by means of a cheque (local or outstation), the date of encashment of the cheque is treated as the date of deposit.

This provision in PPF gave an edge to depositors, especially when Outstation Cheques are deposited.

To remove this anomaly, Reserve Bank of India, DGBA, vide notification dt,.29th March, 2010, has clarified that


In order to bring uniformity in the reckoning of the date of deposit in the PPF vis-à-vis POSS and SCSS, the GoI, vide their letter F. No.7/7/2008/NS-II dated February 10, 2010, have decided that hereafter in modification of Ministry of Finance letter No.F.3(9)-PD/72 dated September 4, 1972 “when a deposit is made in the PPF account by means of a local cheque or demand draft by the subscriber, the date of realization of the amount will be the date of deposit.”


Thus this brings in uniformity in reckoning the date of  deposit of the funds in PPF/POSS and SCSS.

Very Basic fundas of PPF 1968.

  • PPF came into existence from   1st July, 1968.
  • It uses the power of compounding to save your money.
  • The Public Provident Fund has been established by the central government.
  • You can voluntarily decide to open one. You need not be a salaried individual; you could be a consultant, a freelancer or even working on a contract basis. You can also open this account if you are not earning.
  • Any individual can open a PPF account in selected  bank or its branches that handle PPF accounts. You can also open it at the head post office or certain select post offices.
  • The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000.
  • The Best part of the PPF is that the funds deposited in it are free from any attachment
  • A PPF account is free from any attachment under any order or decree of a court in respect of any debt or other liability incurred by him


PPF account can be opened in any of the following Banks:

PPF A/c-State Bank of India

PPF A/c-State Bank of Indore

PPF A/c-State Bank of Patiala
PPF A/c-State Bank of Bikaner & Jaipur

PPF A/c-State Bank of Travancore
PPF A/c-State Bank of Hyderabad

PPF A/c-State Bank of Mysore
PPF A/c-Allahabad Bank

PPF A/c-Bank of Baroda

PPF A/c-Bank of India
PPF A/c-Bank of Maharashtra

PPF A/c-Canara Bank

PPF A/c-Central Bank of India
PPF A/c-Corporation Bank

PPF A/c-Dena Bank

PPF A/c-Indian Bank
PPF A/c-Indian Overseas Bank

PPF A/c-Punjab National Bank

PPF A/c-Syndicate Bank
PPF A/c-UCO Bank

PPF A/c-Union Bank of India

PPF A/c-United Bank of India
PPF A/c-Vijaya Bank




Yes, you have read correctly, PPF Accounts can be opened with ICICI Bank too, and the Bank offers Online PPF Accounts,

I am sure viewers would be interested in such a facility.


10 thoughts on “RBI Notification – Clarification regarding reckoning of the date of deposit”

  1. I have saving account in Dena bank , Can i convert it in PPF account . If it is not possible to convert please give me proper information for open new PPF account….

    Thanks and reagrds

    Ashish Patel

  2. As the notification shows different commercial bank operating in has been permitted to open PPF account. But the fact is that, I have a Saving A/c with canara bank and Bank of India also. When i enquired that i want to open a ppf a/c in canara bank and Bank of India the employees/Officers of the banks reply was that we are not authorised to open PPF A/C. Only State bank of India and Post office have the authority to open PPF A/C. Kindly suggest me I may be able to open a PPF a/c with Canara Bank or Bank of India.

    1. My son Vineet Chawlas has PPF account with Canara Bank ,Bangalore. Where can I deposit his instalment for 2010-11 in Hyderabad ?

      1. HI, if CAnara Bank PPF account is integrated with the core banking, than you deposit the PPF instalment at any canara bank branch. Otherwise,you have to send a DD to the canara bank, respective branch in bangalore only.

  3. This is a very big mistake that RBI has committed without understanding the difference in between the PPF accounts on one hand and the POSS / SCSS on the other. PPF account is a govt. scheme account and is being operated by the banks or post offices as an “agent ” for the Govt. of India. In such cases, the counter of Post Office or the bank acts as the counter of the Govt. of India and the “date of tendering the local instrument itself becomes the date of deposit”. What treatment is given for the various taxes paid at the counters of banks, are we not availing the “date of deposit” itself as the date of credit? What do we do when we pay bills of telephone or electricity at the counters of the concerns or the designated banks by cheques? Are they not giving the same day credit though they may deposit the cheques much later? The RBI circular lacks logic and moreover look like an advt for ICICI bank , the way it stressed the option given for the bank to accept PPF deposits. Withdraw the circular immediately.

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