The Ministry of Finance's Department of Economic Affairs released a list of updated guidelines for Public Provident Fund (PPF) accounts, which will become effective from October 1, 2024.
These included updated guidelines for PPF accounts in the name of minors, guidelines for individuals with multiple PPF accounts, and NRIs extending their PPF accounts through post offices under the National Small Savings (NSS) schemes.
The guidelines were initially announced in a circular on August 21, 2024, and were aimed to "regularise irregular small savings accounts."
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What are the new PPF Rules from October 1, 2024?
1) Interest rate of PPF account for minors
The interest rate applicable for Post Office Savings Account (POSA) will be applicable for PPF accounts in the name of minors till the age of 18, post which, the standard PPF rates will apply.
The maturity period will be calculated from the date the minor attains adulthood, when they become eligible to open their own regular account.
2) More than one PPF Account
If you have multiple PPF accounts, the scheme interest rate will be earned on the primary account till the deposit remains within the yearly limit.
{{/usCountry}}If you have multiple PPF accounts, the scheme interest rate will be earned on the primary account till the deposit remains within the yearly limit.
{{/usCountry}}If the primary account stays below the applicable investment limit for the year, the second account's balance will get combined with it.
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The second account's excess balance will get returned without any interest while the primary account will continue earning the prevailing interest rate.
Apart from the primary and second account, other accounts will not get any interest.
3. Extension of PPF account for NRIs
NRI account holders with Form H not explicitly inquiring about the residency status will get a POSA interest rate till September 30, 2024 and no interest afterwards.
This is applicable for Indian citizens who became NRIs during the currency of the account.
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