New Delhi: The Centre issued clarifications related to the impending rule changes to PPF from October 1, 2024. The rule changes pertain to specific accounts and are not meant to encompass all PPF accounts. The move is aimed at the regularisation of existing accounts and to prevent doubling or multiple holdings.
What are the proposed PPF rule changes?
The Centre clarified that members of the public should ensure clarity around the rule changes to avoid alarm and to understand the reason behind the same, CNBCTV18 reported, citing people familiar with the matter.
PPF rule changes from October 1, 2024
Multiple account holders will be required to list their primary account and secondary account. Their secondary account will stop receiving interest from October 1, 2024 and its sum will be transferred to the primary account which will continue to receive 7.1 per cent interest rate.
If the person holds more than 2 PPF accounts, these shall stop receiving interest payments from October 1, 2024. The overall amount between the two PPF accounts must not exceed the annual deposit cap, according to the official notification.
Minor PPF accountholders will receive an interest rate equalling that of the Post Office Savings Account Scheme. The PPF account will start earning full interest rate from the date on which the minor becomes a major. Minors’ PPF accounts will be considered for maturity from the date they turn 18 years old. These rules apply to minor accounts without an accompanying guardian account.
NRI account holders who have not shared their certificate of residence will stop receiving interest rate on deposits with effect from October 1, 2024. NRIs must also agree to maintain their PPF accounts on the condition that the sum invested will nit be transferred abroad on maturity, according to the updated rules.
The Centre has issued a clarification with respect to the impending PPF rule changes from october 1, 2024. The rule changes are related to minor, NRI and multiple account holders. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
