“New PPF Rules From October 2024: Key Changes You Need to Know”

Public Provident Fund changes 2024

New PPF Rules From October 2024: In this regard, the ministry has highlighted the new guidelines for Public Provident Fund accounts revisions in a circular that was issued on 21st August 2024.

In the notification, the ministry said these new rules for PPF, Sukanya Samriddhi Yojana, other small savings schemes will be effective from October 1, 2024.

The Finance Ministry in the circular said, “lt needs to be noted that the power to regularise irregular small savings accounts are vested with the Ministry of Finance. Therefore, all cases pertaining to irregular accounts should be forwarded to this division for regularisation by the Ministry of Finance.”

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However, the analysis the Public Provident Fund (PPF) is mainly a savings and investment with tax benefits, reasonable rates of interest and fixed returns in the long run.

Check key changes to the PPF Rule

If one PPF account has been opened in the name of a minor, the Interest as per POSAs will continue to be paid until he becomes major to open a normal account at the age of eighteen.

After reaching the age of majority, respectively after, the account holder reached eighteen years, an interest rate should be charged on the account. Further, the maturity term of such accounts will be counted from the date the minor becomes an adult.

Multiple cases of PPF account

If more than one account currently exists entitled to PPF, then, the rate of interest will be paid to the primary account based on the deposit within the given yearly limit. The regularisation of account implies that it is one of the two accounts chosen by the investor in any Post Office or agency bank and the investor wants to retain it after being regularised.

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Otherwise, if the first account stays below the related investment cap annually, the amount in the second account will be added to the first.

PPF account extension by NRI

However, if a Non-Resident Indian (NRI) has a running Public Provident Fund account and did not use Form H to change his or her residency status, s/he will continue to earn POSA rate of interest on the account until September 30, 2024. and after this date no further interest starting accruing on the account will be made to the account holder.

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