Financial or banking institutions will now not charge any fee for updating nominees For Public Provident Fund or PPF accounts. The Union Government on Thursday made this announcement through an official notification. The Ministry of Finance stated that necessary changes have now been made in the Government Savings Promotion General Rules 2018 via Gazette Notification 02/4/25. This order will mandate the banking institutions to make changes without any charge.
Union Finance Minister Nirmala Sitharaman also informed this through a post on X. She wrote on X, “Recently 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 02/4/25 to remove any charges on the updation of nominees for PPF accounts. The Banking Amendment Bill 2025, passed recently, allows nomination up to 4 persons for payment of depositors’ money, articles kept in safe custody and safety lockers.”
What Did The Order Say?
Notably, it was widely reported that the financial institutions were charging extra fees for adding nominees.
The update of nominees comes after the recently passed ‘Banking Amendment Bill 2025,’ allowed the nomination of up to four persons for the payment of depositors’ money, articles kept in safe custody and safety lockers.
The order is effective from April 2, as per the official notification.
The official notification read, “In the Government Savings Promotion General Rules 2018, in the Schedule II, under Fee to be charged for services, the word and figures “(b) Cancellation or charge of nomination – Rs 50″ shall be deleted.”
What Is PPF?
Public Provident Fund (PPF) is a long-term investment scheme in India. It offers tax benefits and guaranteed returns, with a minimum investment of Rs 500 and a maximum of Rs 1.5 lakh annually. The Government proposed to merge the Government Savings Certificates Act, 1959 and the Public Provident Fund Act, 1968, with the Government Savings Banks Act, 1873. The objective of the common act is to bring uniformity to the provisions of different small savings schemes presently governed by the three Acts.
