New Delhi: In a welcome step, Finance Minister Nirmala Sitharaman confirmed that financial institutions cannot impose any charge for updation of nominee details for Public Provident Fund (PPF). Posting on X, Sitharaman said that the necessary changes regarding the same have been introduced in the Government Savings Promotion General Rules 2018.
“Recently was informed that a fee was being levied by financial institutions for updating/modifying nominee details in PPF accounts. Necessary changes are now made in the Government Savings Promotion General Rules 2018 via Gazette Notification 02/4/25 to remove any charges on the updation of nominees for PPF accounts,” the finance minister posted on X.
She further informed that The Banking Amendment Bill 2025, which was passed recently, allows nomination up to 4 persons for payment of depositors’ money, articles kept in safe custody and safety lockers.
The notification regarding the same was released on April 2. It mentioned that the changes will come into effect on the day of publication in the official gazette.
“In the Government Savings Promotion General Rules, 2018 in the Schedule II, under fee to be charged for services, the words and figures ‘(b) Cancellation or change of nomination – Rs 50’ shall be deleted,” the notification read.
The bill also calls for redefining the term ‘substantial interest’ of a person in a bank. It has been demanded that the limit be increased to Rs 2 crore from the current Rs 5 lakh, which was fixed almost six decades ago.
The Banking Regulation Act, 1949 was amended to provide additional powers to RBI for more effective regulation of Co-operative banks vide Banking Regulation (Amendment) Act, 2020. The amendment has enhanced RBI’s Supervision Over Co-operative Banks.
Finance Minister Nirmala Sitharaman announced the elimination of all charges for updating PPF nominee details, amending the Government Savings Promotion General Rules, 2018. The Banking Amendment Bill 2025 further allows up to four nominees for PPF accounts and other bank deposits. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
