Public Provident Fund (PPF) is a good investment vehicle for a bright future. In which one can invest and accumulate funds for retirement, which fulfills the dream of having an enjoyable and comfortable time in retirement. Recently some changes have been made in PPF account. In addition to opening accounts in the name of minors, the new guidelines have changed the rules regarding expansion of PPF accounts for NRIs through post offices under PPF accounts and small savings schemes. The Department of Economic Affairs of the Ministry of Finance has changed 3 rules related to PPF account. A circular dated August 21, 2024 was issued in this regard. The new rules are scheduled to come into effect on October 1, 2024. According to which, the Ministry of Finance has the power to regularize irregular small savings schemes. So that all matters connected with it will be referred to the Finance Ministry. According to this circular, for such irregular accounts, interest will be paid at the rate of Post Office Savings Account till the minor attains 18 years of age. He will then be paid the full interest rate. Maturity of such account will be calculated from when the minor attains 18 years of age.
NRIs will not get any interest after September 30:
According to the Finance Ministry, if there is more than one PPF account, the money will continue to flow into the primary account as per the interest rate of the scheme. The amount deposited in the second account will be transferred to the primary account. Apart from this no interest will be earned on any other account. NRIs will also be given the same interest as post office savings account till September 30 in PPF account. No interest will be paid to them thereafter.
