As per rules Non Resident Indians (NRIs) are not eligible to open an account under the Public Provident Fund Scheme. However, if a resident, who subsequently becomes Non Resident Indian during the currency of the maturity period prescribed under Public Provident Fund Scheme, may continue to subscribe to the Fund till its maturity on a Non Repatriation Basis.
Additionally, rules state that Non Resident Indians are not eligible to extend/continue PPF account after maturity. The accounts opened under such category cannot continue beyond maturity. Therefore any subscription made by the depositor is irregular and not entitled for interest. Amount deposited after maturity, shall be refunded to the account holder without interest.
PPF deposit and interest
If in any financial year, minimum deposit of Rs 500 in case of Public Provident Fund Account is not made, the said PPF account shall become discontinued. Discontinued account can be revived by the depositor before maturity of the account by deposit minimum subscription (i.e. Rs. 500) + Rs. 50 s default fee for each defaulted year.
For Public Provident Fund, the interest rates are 7.1 % per annum (compounded yearly). The minimum balance for PPF IS Rs 500 while maximum Rs 1.5 lakh can be deposited in a financial year. Deposits can be made in lump-sum or in installments.
PPF maturity extension for NRIs vs Indian residents
PPF matures after 15 years, and account holders can either withdraw the full balance, extend the account without deposits, or extend it with deposits by submitting Form H within one year. If no action is taken, the account is automatically extended for 5 years without new deposits, but interest continues on the balance. Withdrawals are limited to once a year in this case. With fresh contributions, deposits up to Rs 1.5 lakh per year are allowed, withdrawals are capped at 60 percent of the balance, and tax benefits continue. Your money always remains safe and earns interest.
Non-Resident Indians cannot extend a PPF account after its initial 15-year maturity period. While resident Indians can extend their accounts indefinitely in 5-year blocks, this option is strictly blocked for NRIs. Upon maturity, the account is automatically closed and stops earning interest.
Only 1 PPF account
According to the Public Provident Fund Act of 1968, each person is allowed to open only one PPF account. This rule is strictly followed across all banks and post offices. If someone ends up with more than one account, the extra ones will be closed and only the deposited amount without any interest will be refunded.
