On 21 August 2024, the Department of Economic Affairs under the Union Ministry of Finance has issued a guideline regarding the new rules, under which three new rules of PPF will be implemented.
There are going to be three major changes in the Public Provident Fund (PPF) scheme operated under the Small Savings Scheme of the Post Office. This change will come into effect from 1 October 2024 i.e. next month. A guideline has been issued by the Ministry of Finance regarding this. This should be a scheme which comes with a maturity period of 15 years and can make you a millionaire in the long term. Let us know what changes are going to happen under this scheme?
On 21 August 2024, the Department of Economic Affairs under the Union Ministry of Finance has issued a guideline regarding the new rules, under which three new rules of PPF will be implemented. Apart from this, there will be changes in the rules of Sukanya Samriddhi Yojana and NSC as well. The guidelines explain in detail the three different cases of irregular accounts from minor to NRI for regularization.
1 – PPF account opened in the name of minor
Post Office Savings Account (POSA) interest will be paid on such irregular accounts till the person (minor) becomes eligible to open the account. That is, the person does not reach the age of 18 years, after that PPF interest rate will be paid. The maturity period will be calculated from the date on which the minor becomes an adult. That is, the date from which the person becomes eligible to open an account.
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2 – More than one PPF account
The primary account will get interest as per the scheme provided the deposit amount is within the maximum limit applicable for each year. The remaining amount in the second account will be merged with the first account, provided the primary account remains within the estimated investment limit every year. After the merger, the primary account will continue to get the prevailing scheme rate or interest. Any additional account other than the primary and secondary account will get zero percent interest rate from the date of opening the account. This means that even if more than one account is opened, the interest of the PPF scheme will be available on only one account.
3- Extension of PPF account by NRI
Only active NRI PPF accounts opened under PPF, 1968, where Form H does not specifically ask about the residential status of the account holder. Account holders (Indian citizens who have become NRIs during the period of opening the account) will be given interest at POSA rate till 30 September 2024. After this, zero interest rate will be applicable on these accounts from 1 October.
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