PPF Account New Guidelines: The Public Provident Fund (PPF) is among the many most dependable long-term financial savings choices in India, providing assured returns together with enticing tax advantages. It’s a standard alternative for people planning for retirement or long-term monetary objectives. Nonetheless, regardless of its recognition, there’s nonetheless confusion amongst many buyers relating to the foundations round sustaining a number of PPF accounts. 

A often requested query is: Can an individual legally maintain multiple PPF account? And what occurs if a second account is opened by mistake? On this article, we’ll information you thru all of the frequent questions that will come to thoughts.

PPF New Guidelines: One Account Per Individual

Based on authorities pointers, a person is allowed to carry just one PPF account of their title, as per the Public Provident Fund Act, 1968. Opening one other account—no matter whether or not it is in a unique financial institution or put up workplace—is taken into account a violation of guidelines. If a second account is created, it’s deemed invalid. Whereas the principal quantity is refunded, no curiosity is paid on the steadiness.

PPF New Guidelines: Accounts for Minor Youngsters Are Permitted

Whereas a number of accounts in a single’s personal title are prohibited, people are allowed to open a PPF account on behalf of a minor little one. In such circumstances, the dad or mum or guardian manages the account. Nonetheless, there’s a cap—the mixed annual deposit throughout each accounts (dad or mum and little one) can’t exceed ₹1.5 lakh. For instance, if ₹1 lakh is deposited within the dad or mum’s account, solely ₹50,000 could be added to the kid’s account throughout the identical monetary yr.

PPF New Guidelines: No Joint Accounts

PPF accounts are strictly particular person. Joint accounts will not be permitted—not even between spouses or between a dad or mum and a baby. Even within the case of a minor’s account, solely the kid’s title seems formally, whereas the guardian oversees its operation.

PPF New Guidelines: What If You Open Second Account By Mistake?

 When you have mistakenly opened a second PPF account, it’s suggested to inform your financial institution or put up workplace instantly. Normally, the second account shall be closed, and the quantity refunded—however with none accrued curiosity.

PPF New Guidelines: Can NRIs maintain PPF accounts?

Non-Resident Indians (NRIs) will not be allowed to open new PPF accounts. Nonetheless, if an individual opened a PPF account after they have been a resident and later turned an NRI, they’re allowed to proceed contributing till maturity (15 years), however can’t prolong it past that interval. 

PPF Curiosity Fee For FY 2024-2025

Presently providing an rate of interest of seven.10 per cent each year (topic to periodic revision) for FY 2024-2025, PPF continues to be a tax-exempt and low-risk financial savings software. It enjoys EEE (Exempt-Exempt-Exempt) standing, that means contributions, curiosity, and maturity proceeds are all tax-free. The default tenure is 15 years, with the choice to increase in blocks of 5 years. Buyers can contribute between Rs 500 and Rs 1.5 lakh yearly.