PPF and NSC for NRIs – Amendment Rules 2018

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• I have few NSCs which have matured long time ago around 2017.
  It was with my son who was minor at the time, and now is 25. Both of us are NRI . At the time of taking the certificates, we didn’t know about the rule as the broker did not inform us .Is it possible to transfer the NSCs is to our relatives? There is no way that he is able to travel to India for this work. Do post offices except authority, letter ?
  What documentations may be needed.

  • Dear Preeti,
    Sadly such transfer not possible.

• Hello Sir,

  I have a PPF account which was extended for a 5 year block in 2017. I became an NRI in 2019. Can I close the PPF account before the completion of the 5 year block which will be October 2022?

  • Dear Nish,
    You can close in October 2022 (now not required).

• Hi Sir

  I am an NRI, My PPF account matured in 2000. I have not made any investment post maturity. I turned NRI in 1997. SBI is not paying me interest for the money for a period post maturity. I want to know whether i will be entitled for interest on the amount in my PPF from 2000 till now?

  • Dear Shubham,
    Sadly NO.

• Hi Sir,

  I am an NRI for the current financial year and will remain so till Aug 2020. I have a PPF account opened in 2012. Suppose the amendment comes into effect, then my PPF account will close and will get savings interest after that. Please address my query below.

  When I return in 2020 and my resident status changes from NRI to resident. Will the account be reinstated or my funds will be locked till maturity earning only savings interest rate?

  • Dear Deepak,
    Please read the post properly. Govt canceled this new notification and you can continue and contribute as usual. But if your status at the time of maturity (after 15 years completion) is NRI, then you can't extend the PPF.

• Hi Sir,

  I have a question related to PPF for NRI.

  My sister has a PPF account and now she is staying abroad.

  She is visiting India in December this year and after this may not visit India for few more years.
  Should I ask her to close the PPF account? Please advise.

  Thanks,
  Harsh

  • Dear Harsh,
    You can inform her to close. But if the maturity is far away, then let her continue till maturity.

    • Thank you sir

      I will chk and tell her accordingly.

• Dear Basavaraj,

  Trust you are doing well. I appreciate you running this very informative blog.

  I have read about recent notification that the people with NRI status can invest in PPF account until further notice. Could you please confirm on this.

  Also I am out of India from last 7 years, so I do not have aadhar card, does this impact my PPF account status at SBI bank?

  Do I need to inform them ? Also is there any kind of other document required from NRIs to keep their PPF account active?

  I look forward to hearing back from you.

  Warm Regards,
  Kulbhushan Kaushik

  • Kulbhushan-Yes, you can continue your PPF up to the maturity period (as per old rule). As you are an NRI, you are exempt from linking Aadhaar to any of financial products. But you have to inform the same.

    • Thank You Basavaraj for the information. I truly appreciate it.

      One more question, is there any document I need to submit as proof that I am an NRI and can it be done over phone/email.

      Thank You,
      Kulbhushan Kaushik

      • Kulbhushan-You better prove with valid documents (like visa and all).

        • What about if I already have a foreign citizenship. I am not an NRI then. I have no PIO nor OCI and I am not interested to have one. Then do I submit a copy of my local passport (Canadian) as proof that I don't reside in India or aren't foreigners like me not allowed to continue PPF?

        • Winston-Regarding process, each bank have their own set of rules. Hence, better to check with your bank.

        • What is the use of informing the bank in the first place???? You do not get any extra credit informing the bank. They do not give you any extra interest or so on being an NRI? If one shows that he/she is a foreign citizen by producing a non-Indian passport then the banks will create more trouble especially if there are just 2 years left for maturity. Foreign citizens are not allowed to open PPF. This is meant only for Resident Indian. NRI's are very much Indian as they hold an Indian Passport. PIO/OCI's are just glorified words without meaning. They are given a lifetime Indian visa and can invest in India and do most things except vote, hold Govt offices.
          Please let me know if it is better to be silent on the matter if a person is a foreigner or risk the chances of getting into trouble. Finally, how will the govt ever come to know if a person has become a foreigner? On maturity of my PPF, I can just fly to India (after applying for a visitor visa) collect the amount, convert into USD, via transfer it to m bank in Canada and leave the country. If I had invested something, then I should be able to take it with me to the place I call my home.

        • 1. If govt. has its way, you have to furnish aadhaar in ppf. If u don't u are NRI and they can make rule to u get even 4% from date u become first time NRI. How the will know start date, they can simply ask u to goto FRRO or some MEA office and get proof of ur date. Now u will have to run to them to get such proofs not them.. So don't play or underestimate govt. machinery.. If u make excuses than imagine what will happen when they start making same.

          2. Why the hell you feel
          ""They do not give you any extra interest or so on being an NRI? ""
          Are u downtrodden(except ur thoughts) or oppressed that you need more interest. Do you know the interest comes from govt. money which should have been given to needy.. Why morons like you feel NRIs should get something more than residents..

          3. If you by chance have Aadhaar and linked that too, your aadhaar might be linked with PAN and your PAN is anyway linked with NRE accounts in case u have. so again its just matter of time such queries vomit all wrong doers.

          4. How will one convert INR to $ :). If you use banking channel, govt. will ask source of money even in next 6-10years and will make u come to India for tax evasion with good penalty..

          so at end, don't act smart. Follow rules else your name itself is enough proof for the Financial Intellgence Unit (its a divsion of IT deptt if u dont know but it normally doesn't deal with small fellows) report to track and act.

          Shame on such NRIs who want to get free money meant for nation needy even when they are blessed with sufficient in their new place to live happily. Such greed shows such morons must be harassed to maximum by calling N times to india in cases for their 2 year interest scam and than finally a bailable warrant for tax evasion..

        • Winston-I explained the rules. Rest is left with individuals on how they take or interpret the rules.

• Dear Mr. Basavaraj,

  Greetings!!

  Me and my spouse have received Canadian PR few days back and will be moving permanently to Canada in July this year. She has a PPF account with a Bank and we wish to close the same. Its been running since many year now but less than 15 years. As per the rules, is she allowed to withdraw all the amount and transfer the same to her savings account. She visited the said Bank and have been told that due to RBI notification she is prohibited to do so. We do not wish to continue the account now. Can you please let me know if this is possible.

  Regards,
  Anjani

  • Anjani-You can close the account as a regular PPF. However, you will get 1% less interest rate of what you accumulated. Refer my post "Premature closure of PPF account – New Rules 2016".

• Hi Basu,

  I opened a PPF account in 2013 and became NRI in 2014.
  I have been depositing the maximum account for the last 2 years.
  Seeing all the recent Govt notification, do you suggest to continue investing or should i just meet the minimum required deposit each year from now on?

  Kindly suggest!

  Thanks,

  Arghya

  • Arghya-As the Government cleared all doubts, you can continue it up to maturity.

• Hi Basu, I have maintained my ppf account after maturity even after becoming an NRI and Bank(SBI) did not object to it. It has entered now in second auto renewal of 5 years .They even accepted the contribution from my NRI account as well couple of times. Could you please tell me how the interest be calculated in my case if I close my account today? Will I get 8% and then 4% for the remaining period after maturity? Your answer will definitely help. Thanks

  • Anil-You will get the regular interest up to the maturity. However, if you discontinue now, then they reduce 1% interest on the last extended period interest rate.

    • They have been saying that since NRI's could not continue the PPF account so I would get interest only up to maturity and there will be no interest after that. Is it right interpretation?

      • Anil-If you renewed when you are NRI, then it is fault and you have to pay the penalty for that by accepting NO INTEREST from the date of that maturity to till your closure.

• Hi
  Opened PPF account in 1988.Matured in 2003.(15 years)
  Became NRI in 1994.
  The 5 year extension will be over on 1 st April 2018.
  Would like to close the account.
  Will I get 7.8% interest up to 3rd October 2017 or 4% from 2003 onwards?
  Is one extension of 5 years allowed to NRI ?
  Thanks

  • Rakesh-Extension is not allowed to NRIs. Hence, better you have to close it immediately after maturity.