Big News for Public Provident Fund Holders, Rules are Changing Soon, Know the New Updates

New PPF Rules: Changes are being made to the rules of PPF, what changes are being made and how will they affect account holders?

In India, many people invest in various schemes, including the Public Provident Fund (PPF). PPF is a long-term government scheme that provides good returns. The PPF account matures after 15 years. If you want to invest in PPF or are an existing PPF account holder, you should know about the changes being made to PPF accounts.

The Indian government has made some changes to the PPF rules, which will come into effect from October 1. The government issued a circular last month regarding these changes. What changes have been made to the PPF rules and how will they affect PPF account holders? Let’s tell you all about it.

Rules Changed for Minors

The government has decided that the interest rate on PPF accounts opened in the name of minors will be the same as the post office savings account. Until the minor turns 18, the PPF interest rate will not apply to the account. Additionally, the maturity date of the PPF account will start from the date the minor turns 18.

No Interest for NRIs

According to the new PPF rules, new guidelines have been issued for NRI PPF account holders. So far, NRIs did not have to provide their residence details, but they still received interest equivalent to the post office savings account. However, this will change, and from October 1, 2024, the interest rate on such accounts will be zero. Therefore, if you are an NRI with a PPF account, you should know about this rule and take the necessary action.

Interest Only on Primary Account

If an individual has more than one PPF account, they will only receive interest on their primary account. The interest will be applicable only on deposits made within a certain limit. Any amount above this limit will be returned with zero interest.