look news india
There is big news for investors investing in Public Provident Fund (PPF). The government has made 3 important changes in the rules related to PPF. In such a situation, if you invest in PPF, then it is important for you to know these rules. Let us tell you that the Department of Economic Affairs of the Ministry of Finance has recently banned PPF accounts opened in the name of children by NRIs under the National Small Savings (NSS) Scheme through post office, multiple PPF accounts and new PPF accounts. Guidelines have been issued. Let us know what will be the effect of these changes?
1. PPF account opened in the name of the child
The government has said that interest will be paid on the PPF account opened in the name of the child as per the Post Office Savings Account Rate (POSA) till the child turns 18 years old. After this, the interest rate applicable on PPF will be applicable. Maturity will be calculated from his 18th birthday. Let us tell you that many people open PPF account in the name of their child.
2. Rules for having more than one PPF account
According to the new guidelines issued by the government, if a person has opened more than one PPF account, interest will be paid on the primary account at the prevailing interest rate. The second i.e. secondary account will be merged with the first account. Provided that the primary account is within the investment limit applicable every year. After the merger, the primary account will continue to get interest as per the prevailing scheme rate. Note that except for the primary and secondary accounts, all other accounts will not get any interest from the day of their opening. The amount deposited in it will be refunded at zero percent interest.
3. PPF account rules for NRIs
Only existing NRI PPF accounts opened under the Public Provident Fund Scheme (PPF), 1968, where the residential status of the account holder is not specifically asked in Form H, can be opened by the account holder (an Indian citizen who is an NRI. The account is overdue) will be given POSA interest rate till September 30, 2024. Thereafter, the said account will get zero per cent interest.