The Public Provident Fund (PPF) is a popular investment tool for a secure future and retirement planning. Recent changes have been made to the PPF rules. These updates affect accounts opened in the names of minors, multiple PPF accounts, and rules for NRIs (Non-Resident Indians) under the National Small Savings Schemes.

Finance Ministry Changes 3 PPF Rules

The Department of Economic Affairs, under the Ministry of Finance, has updated three rules related to PPF accounts. A circular was issued on August 21, 2024, detailing these changes, which will take effect from October 1, 2024. The circular states that irregular small savings accounts should be regularized by the Ministry of Finance.

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Interest for Minors Aligned with Post Office Savings Account

According to the new rules, if a PPF account is in a minor’s name and is irregular, it will earn interest equivalent to that of a Post Office Savings Account until the minor turns 18. After that, the full interest rate will apply. The maturity period for such accounts will start from the day the minor turns 18.

No Interest for NRIs’ PPF Accounts After September 30

The new rules state that if a person has more than one PPF account, only the primary account will earn interest according to the scheme’s rate. Money in secondary accounts will be transferred to the primary account, and no interest will be given on secondary accounts. For NRIs, PPF accounts will earn interest equivalent to Post Office Savings Accounts only until September 30. After this date, no interest will be earned.