Indian Government has recently notified that PPF accounts would be closed prior to maturity in case of holders changing their personal status to become NRIs.
A new government of India notification has come across in the investment scheme as new reforms have been refocused and implemented. The new saving schemes, which involve the National Saving Certificate (NSC); the government has announced that if the account holder’s identity changes to NRI then his/her account will be closed before the maturity. Also, in the case of Public Provident Fund (PPF), account of the holder would be considered to be closed, when the status changes to NRI.
As per the amendment of Public Provident Fund Act 1968, it says precisely that the person, who opens an account under this scheme, subsequently follows the norm, which tells, if the account holder status changes to non-resident, then his/her account would be considered as closed before the maturity period.
This particular norm again came in notice to the gazette, earlier in December, 2017. Apart from this, in contacts with the NSC, it is said that the account itself becomes closed for the encash purpose, since the time the holder status changes to non-resident.
During November 2017, the Indian government unchanged the interest rates on the small savings schemes and also for November and December; the government has kept the interest rate 7.8% on the PPC and NSC schemes.