PPF Account: New rules related to PPF accounts are going to be implemented from October 1 of next month i.e. October 1. A detailed guideline was issued in this regard last month. Actually, in the month of August, the Department of Economic Affairs of the Ministry of Finance had given guidelines for the management of existing public private accounts opened through post offices.
The newly issued rules relate to PPF accounts opened in the name of minors, more than one PPF accounts and extension of PPF accounts of non-residential Indians under National Savings Schemes through post offices. Some new provisions have been made under these rules, which are as follows.
PF accounts opened in the name of minors
Now interest will continue to be available on post office savings account on these accounts till the minor turns 18 years of age. The maturity period of these accounts will be calculated from the date the minor turns 18 years old.
More thn one PF accounts
The rules have changed for those who have opened more than one PPF account. Under this rule, interest will be paid on the primary account of the investor as per the scheme rate. The only condition will be that the deposit amount should not exceed the initial maximum limit.
If there is a balance in the second account and the total amount is within the annual investment limit, then this account will be linked to the primary account. After this, the interest rate of the existing scheme will be applicable on the primary account. 0% interest rate will be applicable on any surplus fund in the remaining account.
0% interest rate will be available on additional account
Any account other than primary and secondary accounts will be given 0% interest rate from the date of opening the account.
PF accounts of NRIs
The interest rate applicable on PPF accounts of NRIs opened under the Public Provident Fund Scheme of 1968 will remain as per POSO guidelines till 30 September 2024. After this, interest will start being given on these accounts at the rate of 0%.
