PPF nomination rules: How many nominees can you add to your account? What does the rule say

The government recently announced the removal of fees for updating or modifying nominee details in Public Provident Fund (PPF) accounts. This change is outlined in the updated Government Savings Promotion General Rules, 2018, as published in the Gazette Notification dated April 2, 2025. Previously, financial institutions and post offices were charging a fee of ₹50 for any changes made to nominee details in PPF accounts.

As a result of this update, all small savings schemes, including Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), and National Savings Certificate (NSC), now allow for nomination changes without any additional charges. Account holders can now update, modify, or add nominees to their accounts without incurring any fees.

Finance Minister Nirmala Sitharaman announced on social media that financial institutions were charging fees for updating or modifying nominee details in PPF accounts. 

Nominations in PPF accounts

In a PPF account, account holders have the option to designate one or more individuals as their nominee. The maximum number of nominees that can be declared is four.

According to the Banking Amendment Bill 2025, account holders can nominate up to four persons to receive depositors' money, items stored in safe custody, and access to safety lockers. This bill has been recently approved by the Parliament.

Upon the account holder's passing, the nominees will be entitled to receive the funds in the PPF account. The balance in the account will continue to accrue interest until the end of the month prior to the disbursement of the eligible amount to the nominee or legal heir.

As per the SBI PPF FAQ page, depositors are permitted to nominate one or more individuals to receive the eligible balance, with a maximum limit of four individuals. The balance in the deceased account holder's account will continue to earn interest until the end of the month prior to the payment of the eligible balance to the nominee or legal heir.

The Banking Amendment Bill 2025, which was recently approved, permits the nomination of up to four individuals for the payment of depositors' funds, items kept in safe custody, and safety lockers.

Investment and interest rate

PPF is currently offering an annual compounded interest rate of 7.1%. Investors can deposit up to Rs 1.5 lakh per year in this scheme. The account reaches maturity after 15 years. Notably, no tax is applied on the interest gained or the withdrawn amount upon maturity.

PPF is a tax-exempt investment option that offers benefits at all stages of investment. Contributions made to PPF are eligible for a tax deduction under Section 80C of the Income-tax Act of 1961, up to Rs. 1.5 lakh per fiscal year. Not only are taxes exempt at the time of investment, but also on accrued interest and withdrawals. Additionally, the maturity amount withdrawn from PPF remains tax-free, providing a source of tax-free income.