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PPF Rules for NRIs: Eligibility, Maturity, Withdrawals and Contributions
The Public Provident Fund, or PPF, is a government-backed savings plan in India.
It normally lasts for 15 years.
An NRI cannot open a new PPF account.
However, an Indian national who already had an account before becoming an NRI can keep contributing through an NRO account.
NRIs cannot extend the account for extra five-year periods after the first 15 years.
Money and interest can generally be withdrawn and repatriated after the 15-year term, subject to the stated rules.
Early closure is possible only for specific reasons after five financial years.
In that case, the interest rate is reduced by 1 percentage point.
The account also requires at least ₹500 in deposits each year to remain active.
NRIs cannot open new PPF accounts but may continue existing accounts if they remain Indian nationals.
Existing PPF accounts can receive contributions through an NRO account until the original 15-year maturity.
NRIs cannot extend PPF accounts in five-year blocks after the initial term ends.
Withdrawals and repatriation of invested amounts and interest are generally allowed after 15 years, subject to stated limits.
A minimum annual deposit of ₹500 is required, while total yearly investment cannot exceed ₹1.5 lakh.
- Who
- Non-resident Indians who already held PPF accounts before becoming NRIs, as well as Indian resident account holders.
- What
- Rules governing PPF eligibility, contributions, maturity, extension, withdrawal, premature closure and repatriation for NRIs.
- Where
- India, through the India Post small savings scheme.
- When
- The PPF has a 15-year term; premature closure is permitted after five financial years from the end of the financial year in which the account was opened.
- Why
- Government regulations restrict NRIs from opening new PPF accounts and from extending existing accounts beyond the original 15-year term.
Key facts
- New-account eligibility
- NRIs cannot open new PPF accounts in India.
- Existing accounts
- An Indian national who becomes an NRI may continue contributions through an NRO account until maturity.
- Original term
- PPF accounts have a 15-year lock-in period.
- Extension
- NRIs cannot extend accounts in five-year blocks after the initial 15-year term.
- Minimum annual deposit
- ₹500 is required each year for the account to remain active.
- Maximum annual investment
- The investment limit is ₹1.5 lakh per financial year.
- Repatriation limit
- Maturity proceeds treated as capital income have a stated repatriation limit of $1 million per year.
Sources
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