No more charges for updating nominee details in PPF accounts, FM Nirmala Sitharaman says

Nominee details in PPF accounts are important since funds will get transferred to the designated beneficiary in the event of the account holder’s demise.

Published on: Apr 4, 2025, 15:25:20 IST

By HT News Desk

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Modifying details of the nominee in your Public Provident Fund (PPF) account will no longer result in a charge.

PPF is a long-term, tax-saving investment scheme offered and backed by the government.

This is because “necessary changes” are being made to the Government Savings Promotion General Rules 2018.

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“In the Government Savings Promotion General Rules, 2018, in Schedule II, under ‘Fee to be charged for services,’ the words and figures ‘(b) Cancellation or change of nomination – ₹50’ shall be deleted,” according to a Finance Ministry notification.

This new change has been effective since April 2, 2025.

In an X post, finance minister Nirmala Sitharaman called them “necessary changes”, adding that “the Banking Amendment Bill 2025, passed recently, allows nomination up to 4 persons for payment of depositors' money, articles kept in safe custody and safety lockers.”

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Nominee details in PPF accounts are important since funds lying in the account will get transferred to the designated beneficiary in the unfortunate event of the account holder’s demise.

What is PPF?

PPF is a long-term, tax-saving investment scheme offered and backed by the government. It currently has a lock-in period of 15 years for deposits, and provides an annual interest rate of 7.1%.

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However, the interest is also compounded annually, making it an effective long-term wealth-building investment tool.

The government periodically reviews the PPF interest rate and the rates for other small-savings instruments.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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