Understanding New PPF Rules From October 1 | Minor Accounts, Multiple PPF Accounts, NRIs Explained

Last month, the Department of Economic Affairs, under the aegis of Ministry of Finance, had issued fresh guidelines to streamline existing Public Provident accounts opened through post offices. These changes in PPF rules, to be effective from October 1, 2024, pertain to PPF accounts opened in the name of minors, multiple PPF accounts held, and the extension of PPF accounts by Non-Resident Indians (NRIs) under the National Saving Schemes held through the post office. For the Public Provident Fund (PPF) accounts opened in a minor's name, as per the revised rules these accounts will persist in receiving Post Office Savings Account (POSA) interest until the minor reaches 18 years of age. Maturity period for such accounts will be calculated from the date the minor becomes an adult, that is, the date from which the individual becomes eligible to open the account.Incase of More than one PPF Account, The primary account selected by the investor at any Post Office or agency bank will earn interest at the scheme rate, provided that the deposited amount does not exceed the yearly ceiling limit. For Non-Resident Indians (NRIs) with active PPF accounts opened under the Public Provident Fund Scheme (PPF) of 1968, when Form H did not inquire about the residency status of the account holder, the rate of interest applicable will be as per the POSA guidelines until September 30, 2024.