The Division of Financial Affairs underneath the Ministry of Finance has issued new tips for Public Provident Fund accounts shaped within the identify of minors, a number of PPF accounts, and the extension of PPF accounts by NRIs underneath Nationwide Small Financial savings (NSS) schemes by way of put up places of work. On this regard, the ministry has launched a round notifying the revisions on August 21, 2024.
Within the notification, the ministry stated these new guidelines for PPF, Sukanya Samriddhi Yojana, different small financial savings schemes will likely be efficient from October 1, 2024
The Finance Ministry within the round stated, “lt must be famous that the ability to regularise irregular small financial savings accounts are vested with the Ministry of Finance. Due to this fact, all circumstances pertaining to irregular accounts needs to be forwarded to this division for regularisation by the Ministry of Finance.”
It needs to be famous that the Public Provident Fund (PPF) is a long-term financial savings and funding scheme that provides tax advantages, aggressive rates of interest and assured returns.
Examine key adjustments to the PPF Rule:
If one PPF account has been opened within the identify of a minor, the Publish Workplace Financial savings Accounts (POSAs) rate of interest will likely be paid till the minor turns into eligible to open a daily account on the age of 18.
After the account holder turns 18, the suitable rate of interest will likely be paid. Furthermore, the maturity time period for such accounts will likely be computed from the date the minor turns into an grownup.
Case of a number of PPF accounts
If there are a number of PPF accounts, then the speed of curiosity will likely be paid to the first account so long as the deposit falls inside the relevant annual ceiling. The first account is likely one of the two accounts chosen by the investor in any Publish Workplace or company financial institution and the investor wishes to maintain it following regularisation.
In case, the first account stays under the relevant funding ceiling every year, the stability within the second account will likely be mixed with the primary.
Nevertheless, the principle account will proceed to earn the present scheme rate of interest following the merger. Curiosity-free reimbursement of any remaining quantity within the second account will apply.
PPF account extension by NRI
In case, a Non-Resident Indian (NRI) has an lively Public Provident Fund (PPF) account and didn’t request for the change in residency standing utilizing Type H, she or he will proceed to earn a POSA fee of curiosity on their account till September 30, 2024. and after this date, the account will cease receiving curiosity funds.
 interest rate will be paid until the minor becomes eligible to open a regular account at the age of 18.){kind=link}