PPF

This query is : Open

SREERAG E R (Querist)
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25 September 2020 Hi everyone,
I as a present Indian resident started a PPF account in Jan 2020 and still continuing, in case later within the 15 years of PPF duration, if my status changes to NRI, will there be any problems in contributing and withdrawing my PPF.

CA Raj Doshi

CA Raj Doshi (Expert)
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26 September 2020 Non-Resident Indians (NRIs) are not eligible to open an account under The Public Provident Fund Scheme, 1968. However, NRIs, who had invested in the PPF before becoming a non-resident during the maturity period of the account, can continue to subscribe to the Fund till its maturity on a “Non-Repatriation Basis.” In a notification dated 02-10-2017, the government had said that PPF account held by an NRI would be “deemed to be closed with effect from the day he becomes a non-resident” and keep earning the interest rate of a post office savings account. “Provided that if a resident who opened an account under this scheme, subsequently becomes a non Resident during the currency of the maturity period, the account shall be deemed to be closed with effect from the day he becomes a non-resident and interest with effect from that date shall be paid at the rate applicable to the Post Office Saving Account up to the last day of the month preceding the month in which the account is actually closed,” the notification had said. The above notification was, however, kept in abeyance, or temporarily, dismissed via another order dated 23-02-18. Please convey your like to the reply if it was of any help to you. Regards CA. Raj Doshi