PPF Account: Public Provident Fund is a good means of investment and is also very popular among investors. The biggest reason for this is that there is a government guarantee behind it, due to which this investment becomes risk-free and assured returns are available on it. If you also invest in PPF then this news is important for you. Let us tell you that some rules have been changed regarding PPF account.
New rules will be implemented from October 1, 2024
The Department of Economic Affairs of the Ministry of Finance has changed 3 rules related to PPF account. A circular was issued in this regard on August 21, these new rules will come into effect from October 1, 2024.
According to the circular issued by the department, new guidelines have been issued regarding PPF accounts opened in the name of minors, more than one PPF accounts and PPF accounts opened for NRIs under the National Small Savings Scheme (NSS) through post office.
Minor’s PPF accounts
The circular states that in case of PPF accounts opened in the name of minors, interest equal to Post Office Savings Account (POSA) will be paid for such accounts till the minor turns 18 years old. After this, he will be paid the interest rate (PPF Interest Rate) applicable on PPF accounts.
Maturity period of such accounts will be calculated from the date on which the minor turns 18 years old, i.e. from the date on which the person becomes eligible to open a PPF account.
Rules for more than one PPF account
If you have more than one PPF account, you will get interest at the current rate on the primary account. Its condition is that the amount deposited in it should be within the maximum limit applicable for every year. The money lying in the secondary account will be merged with the primary account. But the condition is that the primary account should remain within the estimated investment limit every year. After this, the primary account will continue to get interest as per the current scheme rate.
It is important to note that except the primary and secondary accounts, all other accounts will not get any interest from the day they are opened. That is, the amount deposited in those accounts will be returned at zero percent interest.
PPF account rules for NRIs
NRI PPF accounts will also be given interest equal to that of post office savings account till September 30. After this, no interest will be given on those accounts. This rule will apply to those active NRI PPF accounts opened under the Public Provident Fund Scheme (PPF) 1968 where Form H does not clearly ask about the residential status of the account holder.
