PPF Account Rate Change for NRIs | NRI Money with Alok

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New PPF rules for NRIs: Zero interest after 15 years!
From October 1, 2024, NRIs with extended PPF accounts (beyond 15 years) will earn no interest. This video clears up misconceptions about the recent National Small Savings Schemes update.

Learn about:
- Current PPF regulations for NRIs
- Impact on accounts opened while still Indian residents
- What to do if your PPF account is 15+ years old
- Smart alternative investment options

As an experienced NRI financial advisor, I'm here to help you navigate these changes.

0:00 Introduction
0:26 Popularity of PPF
0:40 Amended Regulations
0:50 Current Situation for NRIs
1:05 Continued Contribution to PPF
1:15 What has changed?
2:02 Things to Keep in Mind
2:55 Conclusion

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Disclaimer: This video is for educational purposes only and does not constitute financial or legal advice. Please consult with a professional advisor for your specific situation.

[silamparasanparaman]

Good information brother. Most of the news is confusing. But you cleared it. Also can you make a video about the investment which you told at the end of this video. It will be really helpful for everyone. Thank you for the update.

[Bond]

Glad I saw this video. I was about to stop contributing and move it to something else. I do not no why these circular from govt are always misinterpreted by news media

[nehakhas]

Hi, can you clarify something here, i have my ppf account which will cose in 2026, i have not contributed to the account but the account is not declared with nri status, can i get the interest after October 2024 . i will not be going to india for a long time, can you suggest what to do .

[narindersinghmangat]

As per Income tax Act, a person is treated as 'resident' if he fulfills certain conditions relating to his stay in India.It has nothing to do with his citizenship.Thst means, an American citizen can be a resident of India depending upon his residence compliance.Can a person be treated as resident if he fulfills the condition laid down in the Income Tax act.Hence, can he claim his resident status for PPF account.

[upskill]

Please elaborate the 1st action : review your account?...does it mean that PPF account should be converted to NRO even if tenure is less than 15 yrs?

[KiranVaswani-ql]

Thank you very much Alok it is very helpful however the bank says that ppf can only be linked to resident account is there a Govt of India article that we can ask them to refer to link PPF to NRE/NRO account. Please let us know.

[sangaurav]

I have a PPF account with SBI since Nov 2011. I also have a savings bank account with SBI since 2005 which I recently got converted to NRO in Sep 2024 when I visited India. I couldn't convert my PPF account to non-resident status as the branch representative keep telling me that NRI cannot hold a PPF account. Despite me citing the RBI rules he was not agreeing and was asking me to either close PPF account or let it remain under resident status. So I kept my PPF account as-is under resident status. But last week I have got email from SBI stating that since in their records my customer type is NRI but PPF account is under RI status, my PPF account will earn zero percent rate of interest w.e.f 1st October 2024.
My PPF maturity date is Apr 2027. Please confirm if I will continue to earn interest 7.1% till 2027 or it would be 0% or it would be reduced to 4% (POSA) rate.

[priyeshagrawal]

Complicated case:
My wife PPF account was opened when she was an indian resident. Later she turned NRI in 2016 and account continued till maturity.. in 2021, she was in India for more than 182 days and was in INDIAN RESIDENT status.. at that time account matured, she renewed her PPF account for another 5 years.. and then again came back to USA and turned NRI. she contributed 1.5 lac each year into ppf account.

question:
1) Will she received regular ppf interest( 7.1% ) for all these past years ?
2) what about after 30th oct 2024 ?

3) should we close this account ?

4) can we close account from USA ?

5) any other suggestions to better handle this situation?

Thanks in advance.

[viveksharmasns]

Thanks, what happens to those PPF accounts that has not yet completed 15 years. Will those NRI PPF accounts get regular PPF interest

[sachininurs]

Hi Alok, I opened the account when i was a resident of India. The account is 8 years old. This means i can continue the account for the next 7 years. But i am not allowed to extend after 15 years?

[kuntaladhikary]

Hi Alok,
I opened the account in 2013 when i was in India. The account will mature on March'29. That means either I have to continue my PPF account with 2.5% interest rate or can i do the premature closure of my account?

[dksharma]

Thanks for the vdo.
There is a big dilemma for indian citizens who are working in the merchant navy. They are treated as NRE taxation vise.
Pls advice should they continue contributing in Ppf ac or close them?
The mentioned PPF ac has not yet completed 15years.
Thanks.

[narindersinghmangat]

After completing 15 years, I extended the term of my PPF account for next 5 years.After that, I acquired OCI status.As soon as I became OCI, I informed the bank in writing.The maturity of my PPF account is on 31st March 2025..Will I earn normal rate of interest upto maturity?

[ACS-]

hi sir i would like to know about, i have started for son Pon mahan thittam like ppf in post office now it is good to continue invest in that scheme or already i had one ppf in my account investment is better because ROI % changed till 18 years know what is your opnion

[INDIA_SuperPower]

Hi Alok, I have PPF account for my son, this account was opened in 2019. I am now NRI, will I be getting interest on this account ? Or should I consider closing it.

[vimalkant]

Hi Alok, Thanks for this informative video.
I am an NRI, who opened my PPF account while I was still a resident Indian.
I opened my account 7 years ago.
I Just wanted to clarify my understanding of this video.
This rule change of 0% interest earning is applicable only for NRIs, if they have their PPF account extended beyond 15 years. right?
or I as a NRI, who is still continuing to invest in my PPF account (opened 7 years ago), need to do anything.

Of course, I would also like to know, more about the proposal to invest my money, if I liquidate my PPF account, but that's a secondary question.

[ChetanNehra_]

Hi Alok, I opened PPF in 2014 and became NRI in 2017 till now. I have already contributed in my PPF almost 10L, I contacted SBI manager where my PPF account available asked about recent rule change of PPF. He said still you are getting 7.1% and can not redeem before maturity which is in 2029. My query is once my PPF is matured in 2029 and SBI will transfer this amount to my NRO account of SBI, they might consider this rule and will not give me any interest after 01st oct.

[brijmohansharma]

Great video, clarifying all about new ppf regulations for nri. I had opened my ppf account in 2015 when I was resident indian. I have become nri in 2024 and still continuing my ppf account with investment.. I understand that i can continue investment in my existing ppf account till it's maturity ie upto 2030 Should I change my residential status to nri in ppf records. If yes, what is to done fir doing this formality. Should it be done prior to 30sept . Can it be done on line because I am in London presently. What documents are required. Can it be done by my father or wife who reside in India. Please reply me ASAP

[Shruti_starlight]

I'm an NRI with an active PPF account since 3 years. I opened the account in India as a resident.
1. So, will I get POSA interest rate till 30 September and afterwards 0% interest rate for the next 12 years ( If i continue investing) ?
2. What will happen if i change ppf account to nri account?

[seekadvice]

Excellent video. Media / news created chaos in NRI community. Thank you so much for clarifying.

Although my situation is slightly different, I have PPF account which I extended by another 5 years when I was resident. Now i am NRI, will I receive interest till maturity?