Good News! Now New NRIs Can Operate A PPF Account
Mar 05, 2018

Author: PersonalFN Content & Research Team

NRIs Can Operate A PPF

Travelling the world to explore exciting career opportunities isn’t new. But what’s probably unheard is the change in your residential status from resident to Non-Resident Indian (NRI) puts you at a considerable disadvantage as an investor.

Historically, Indian laws have been kind to NRIs. But, times are changing now…

In October 2017, the government released a circular stating from the day you become an NRI, an investor’s PPF (Public Provident Fund) account shall be deemed deactivated.

Before this rule was introduced, the NRIs were allowed to keep their resident-PPF account running until maturity without any extension thereafter.

And then the government decided to take a ‘U’ turn

As you must be aware, the government recently proposed to merge the Government Savings Certificates Act, 1959 and Public Provident Fund Act, 1968 with the Government Savings Banks Act, 1873.

The provisions of these to-be-merged Acts would be subsumed with the Government Savings Banks Act, 1873, simultaneously amended without compromising on any of the functional provision of the existing Act.  

Since PPF is a Small Savings Scheme (SSS), the government is committed to protecting all the earlier benefits available to investors.

In a notification dated February 23, 2018, the government has clarified that “It has now been decided to keep the said notification (released in October) in abeyance till the further order in this regard.” In other words, the government decided to abandon its decision of disallowing NRIs to actively hold PPF accounts until further notice, thereby providing temporary relief for all NRIs.

At present, the PPF offers 7.6% interest (compounded annually) to its subscribers. The PPF account has a maturity of 15 years. Resident Indians can opt for an extension of their account for a block of five years within a year of maturity.

PPF  is one of the most popular investments in India today. And this is no surprise, since it provides tax deductions, the maturity proceeds along with interest are exempt from tax. This makes it a safe instrument which is immune to debt or liability.

Read PersonalFN’s article: All You Need To Know About PPF

While PPF may play an important role in your retirement planning, you shouldn’t solely depend on it. After assessing your risk appetite and the number of years left for your retirement, you should chalk out a personalised asset allocation plan and invest accordingly.

Editor’s Note:

Want to create a personalised retirement plan? Want to know which are best investment avenues for retirement?

Looking for assistance to walk the path to a blissful retired life?

PersonalFN's Financial Guardian will assist you in planning your retirement. You can reach out to PersonalFN on (022) 61361200, or write to

Depending on your age, your risk profile, number of years left to your retirement, PersonalFN will help you define your asset allocation and draw up a personalised financial plan, so that you can fulfil your dream of living a comfortable retired life.

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Add Comments

Apr 11, 2019

Hi,my name Nithesh Hegde,am NRI from past 7year,& I would like to open PPF ACCOUNT in can possible?can u suggest me. Thanks
Jan 08, 2019

My PPF account is already in extended period (15 years ended in March 2017, got it extended for 5 years, means till March 2022) I have joined a job in Canada in Oct 2018 but during this FY (2018-19) i remain tax resident in India and my tax resident status will change to Non-Resident from 1 April 2019. Can I continue with my PPF account till March 2022 or I must close it as 15 year period is already over? I understand that further extension (beyond March 2022) will not be allowed but I am confused whether I need to close it or can maintain till the ALREADY EXTENDED period ends.
Oct 28, 2018

Good day sir, I am an nri can I invest in ppf for more than 15 years and maximum amount 1.5k

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