Latest news with #PublicProvidentFundScheme
Economic Times
12-07-2025
- Business
- Economic Times
Can NRIs open a PPF Account? Know the rules, restrictions and closure options
Getty Images PPF The Public Provident Fund (PPF) is one of the most trusted long-term savings schemes in India. The PPF offers guaranteed returns, tax benefits, and government-backed security. While it is an attractive option for Indians residing in India looking to build wealth and save on taxes, non-resident Indians (NRIs) often wonder whether they too can benefit from this scheme. According to current rules, NRIs, Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) cannot open a new PPF account. According to government regulations, only Indian residents are eligible to open a PPF account. Can a PPF account be continued if the account holder becomes an NRI? According to the SBI FAQs on PPF, "A resident who subsequently becomes NRI during the currency of maturity period prescribed under the Public Provident Fund Scheme, may continue to subscribe to the fund till its maturity on a non-repatriation basis. However, these accounts cannot be extended further." Public Provident Fund: Has the interest rate for July-September 2025 been revised? This means that if a resident Indian becomes an NRI at a later date, then they can continue their PPF account till the maturity date. However, the PPF account cannot be extended after maturity. Can I prematurely withdraw money from PPF account after becoming NRI? The rules for premature withdrawals are quite strict for resident Indians with a PPF account. Premature closure is permitted after five years of account opening completion under specific circumstances, but penalties apply. According to the ICICI Bank website, "As per the Public Provident Fund Scheme, 2019 issued by the Government of India, NRIs can prematurely close their PPF account only after five years from the account opening date."The bank further adds, "Once you change your residency status to an NRI and submit a copy of your passport, visa, or income tax return to your bank or post office where your PPF account is held, you can prematurely close your account if you wish to." What will happen to the PPF account if it continues until maturity after the account holder becomes an NRI? Once the PPF account reaches maturity, it is mandatory to close the account of NRIs. This requires the NRI account holder to withdraw the funds. The entire maturity amount will be credited to your Non-Resident Ordinary (NRO) account. "As per official guidelines, the matured funds are non-repatriable and must be processed via the NRO account" as per DCB Bank website. Can an NRI become nominee in the PPF account? Yes. Non-resident Indians shall be eligible to be nominated as a nominee, subject to the condition that payment to such nominee/s shall be on a non-repatriation basis. This means that the money received by NRI nominee will be credited to the NRO account. Current PPF interest rates The PPF interest rate for the July-September 2025 is 7.1% per annum. The Indian government reviews and may change interest rates on a quarterly basis. The interest rate, set quarterly by the Government of India, ensures steady returns, while the interest earned remains tax-free. Loan against their PPF account NRIs can avail a loan against their PPF account from the third to the sixth financial year of opening the account. This means that if you apply for a loan during the fifth year of PPF holding, then the loan that can be availed will be a maximum of 25% of the closing PPF balance at the end of the third Financial Year (April-March). N.R. Narayana Murthy Founder, Infosys Watch Now Harsh Mariwala Chairman & Founder, Marico Watch Now Adar Poonawalla CEO, Serum Institute of India Watch Now Ronnie Screwvala Chairperson & Co-founder, upGrad Watch Now Puneet Dalmia Managing Director, Dalmia Bharat group Watch Now Martin Schwenk Former President & CEO, Mercedes-Benz, Thailand Watch Now Nadir Godrej Managing Director, of Godrej Industries Watch Now Manu Jain Former- Global Vice President, Xiaomi Watch Now Nithin Kamath Founder, CEO, Zerodha Watch Now Anil Agarwal Executive Chairman, Vedanta Resources Watch Now Dr. Prathap C. Reddy Founder Chairman, Apollo Hospitals Watch Now Vikram Kirloskar Former Vice Chairman, Toyota Kirloskar Motor Watch Now Kiran Mazumdar Shaw Executive Chairperson, Biocon Limited Watch Now Shashi Kiran Shetty Chairman of Allcargo Logistics, ECU Worldwide and Gati Ltd Watch Now Samir K Modi Managing Director, Modi Enterprises Watch Now R Gopalakrishnan Former Director Tata Sons, Former Vice Chairman, HUL Watch Now Sanjiv Mehta Former Chairman / CEO, Hindustan Unilever Watch Now Dr Ajai Chowdhry Co-Founder, HCL, Chairman EPIC Foundation, Author, Just Aspire Watch Now Shiv Khera Author, Business Consultant, Motivational Speaker Watch Now Nakul Anand Executive Director, ITC Limited Watch Now RS Sodhi Former MD, Amul & President, Indian Dairy Association Watch Now Anil Rai Gupta Managing Director & Chairman, Havells Watch Now Zia Mody Co-Founder & Managing Partner, AZB & Partners Watch Now Arundhati Bhattacharya Chairperson & CEO, Salesforce India Watch Now
Time of India
12-07-2025
- Business
- Time of India
Can NRIs open a PPF Account? Know the rules, restrictions and closure options
Tired of too many ads? Remove Ads Can an NRI open a PPF account? Can a PPF account be continued if the account holder becomes an NRI? Can I prematurely withdraw money from PPF account after becoming NRI? Tired of too many ads? Remove Ads Popular in Wealth 1. 99.67% return on Sovereign Gold Bonds: RBI announces redemption price of this SGB What will happen to the PPF account if it continues until maturity after the account holder becomes an NRI? Can an NRI become nominee in the PPF account? Current PPF interest rates Loan against their PPF account The Public Provident Fund (PPF) is one of the most trusted long-term savings schemes in India. The PPF offers guaranteed returns, tax benefits, and government-backed security. While it is an attractive option for Indians residing in India looking to build wealth and save on taxes, non-resident Indians (NRIs) often wonder whether they too can benefit from this to current rules, NRIs, Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) cannot open a new PPF account. According to government regulations, only Indian residents are eligible to open a PPF to the SBI FAQs on PPF, "A resident who subsequently becomes NRI during the currency of maturity period prescribed under the Public Provident Fund Scheme, may continue to subscribe to the fund till its maturity on a non-repatriation basis. However, these accounts cannot be extended further."This means that if a resident Indian becomes an NRI at a later date, then they can continue their PPF account till the maturity date. However, the PPF account cannot be extended after rules for premature withdrawals are quite strict for resident Indians with a PPF account. Premature closure is permitted after five years of account opening completion under specific circumstances, but penalties to the ICICI Bank website, "As per the Public Provident Fund Scheme, 2019 issued by the Government of India, NRIs can prematurely close their PPF account only after five years from the account opening date."The bank further adds, "Once you change your residency status to an NRI and submit a copy of your passport, visa, or income tax return to your bank or post office where your PPF account is held, you can prematurely close your account if you wish to."Once the PPF account reaches maturity, it is mandatory to close the account of NRIs. This requires the NRI account holder to withdraw the funds. The entire maturity amount will be credited to your Non-Resident Ordinary (NRO) account."As per official guidelines, the matured funds are non-repatriable and must be processed via the NRO account" as per DCB Bank Non-resident Indians shall be eligible to be nominated as a nominee, subject to the condition that payment to such nominee/s shall be on a non-repatriation basis. This means that the money received by NRI nominee will be credited to the NRO PPF interest rate for the July-September 2025 is 7.1% per annum. The Indian government reviews and may change interest rates on a quarterly basis. The interest rate, set quarterly by the Government of India, ensures steady returns, while the interest earned remains can avail a loan against their PPF account from the third to the sixth financial year of opening the account. This means that if you apply for a loan during the fifth year of PPF holding, then the loan that can be availed will be a maximum of 25% of the closing PPF balance at the end of the third Financial Year (April-March).
Time of India
30-06-2025
- Business
- Time of India
Post Office Savings Schemes: What is the latest PPF, Sukanya Samriddhi Yojana, NSC, SCSS interest rate? Government notifies rates for July-Sept 2025
Small Savings Scheme interest rate (AI image) Post Office Small Savings Schemes Interest Rate July-September 2025: The interest rates for small savings schemes will remain unchanged for the June to September 2025 quarter, according to the government's latest notification. "The rates of interest on various Small Savings Schemes for the second quarter of FY 2025-26 starting from 1st July, 2025 and ending on 30th September, 2025 shall remain unchanged from those notified for the first quarter (1st April, 2025 to 30th June, 2025) of FY 2025-26," the Ministry of Finance notification reads. Interest rates for small savings schemes, primarily managed by post offices and banks, remain static for the sixth straight quarter. The most recent modifications to select schemes were implemented during the fourth quarter of 2023-24. The quarterly announcement of interest rates for small savings schemes continues to be a regular government practice. Latest Post Office Savings Scheme Interest Rates: July-September 2025 Instrument Rate of interest from July to September 2025 (%) Post Office Savings Deposit 4 1-Year Time Deposit 6.9 2-Year Time Deposit 7 3-Year Time Deposit 7.1 5-Year Time Deposit 7.5 5-Year Recurring Deposit 6.7 Senior Citizen Savings Scheme 8.2 Monthly Income Account Scheme 7.4 National Savings Certificate 7.7 Public Provident Fund Scheme 7.1 Kisan Vikas Patra 7.5 (Will mature in 115 months) Sukanya Samriddhi Account 8.2 The Public Provident Fund (PPF) retains its 7.1% interest rate, and the National Savings Certificate remains at 7.7%. The Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) continue to provide 8.2%. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Gentle Japanese hair growth method for men and women's scalp Hair's Rich Learn More Undo These small savings investment options are generally known as post office schemes. The Department of Economic Affairs under the Finance Ministry issued this information via a circular on June 30, 2025. Why are bond yields important for deciding small savings schemes rate? The reduction in repo rates by 1% has led to a decline in bond yields. RBI's policy rates share a direct relationship. When there are expectations in the market about the RBI lowering the repo rate, bond yields typically follow suit with a downward movement. The Post Office Savings Scheme interest rates are decided by following the Shyamala Gopinath Committee guidelines. The recommendations state that interest rates for small savings instruments should be linked to secondary market yields on Central Government Securities of similar maturities, with an additional spread of 25 basis points. For a 5-year time deposit, the interest rate calculation should reflect the secondary market yield of 5-year G-secs, plus the 25 basis points margin. Although the established methodology suggests that declining repo rates and bond yields should lead to corresponding reductions in small savings scheme rates to align with market conditions, the government's final decisions do not always strictly adhere to these mathematical calculations. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
