‘Remove charges on updation of PPF nominee details’: FM Sitharaman asks financial insitutions

Finance Minister Nirmala Sitharaman has said that financial institutions will not levy any charge for updation of nominee details for public provident fund (PPF). In a social media post, the finance minister said that necessary changes have been made 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,” she said, adding that the Banking Amendment Bill 2025, which was recently passed, allows a nomination of up to four persons for payment of depositors’ money, articles kept in safe custody and safety lockers. 

The notification, dated April 2, stated 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 Banking Laws (Amendment) Bill, 2024, which allows bank account holders to nominate up to four individuals, was passed by Parliament with the Rajya Sabha approving it through a voice vote. The Lok Sabha had already passed the bill in December 2024.

Meanwhile, banking fees, charges and hidden costs had become a topic of debate in the Parliament after AAP MP Raghav Chadha listed out ways financial institutions charged customers – most of whom do not have any clue – for the basic services. 

Chadha had said banks accumulate thousands of crores through their hidden costs levied for services such as SMS alerts, NEFT transactions, changing nominee details, issuing bank statements, while also charging minimum balance penalty, inactivity fee, extra ATM usage, loan processing, loan foreclosure, demand drafts and pay orders. 

“Money is stolen from the customers, and they don’t even know how much money banks take away from them under these charges and fees,” said Chadha.