New Delhi, April 3: Finance Minister Nirmala Sitharaman announced on Thursday that the government has issued a Gazette Notification to bar financial institutions from levying any charges for modifying or updating nominee details in PPF (Public Provident Fund) accounts.
“Recently it 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 April 2, 2025, to remove any charges on the updation of nominees for PPF accounts,” the Finance Minister posted on X along with a copy of the Gazette Notification.
The Banking Amendment Bill 2025, passed recently, allows the nomination of up to four persons for the payment of depositors’ money, articles kept in safe custody and safety lockers, the Finance Minister said.
A PPF account is a long-term, government-backed savings scheme offering tax-free returns and a secure way to accumulate wealth for those looking for safe investments. PPF offers a guaranteed interest rate, which makes it a safe investment option, unlike investments in shares of companies that are subject to risks in the stock markets due to fluctuating prices.
PPF is designed for long-term savings, with a lock-in period of 15 years. Deposits made into a PPF account are eligible for tax deductions under Section 80C of the Income Tax Act which are offered to encourage savings by individuals.
PPF savings have an advantage as both the interest earned and the final maturity amount are tax-free. There is also an element of flexibility in PPF accounts as a portion of the balance can be withdrawn after five years if a person so desires. Besides, loans can also be taken against a PPF investment.
Any resident Indian can open a PPF account, including minors. The minimum limit for a deposit is fixed at Rs 500, while the maximum is Rs 1.5 lakh per financial year. The PPF account can also be extended for five years after the initial 15-year maturity period is over. IANS