New PPF rules 2024: 3 changes from October 1 that Public Provident Fund account holders should be aware of

New PPF rules 2024: Public Provident Fund or PPF is a popular investment option, especially since it comes with government guarantee, making it risk-free with assured returns. The Ministry of Finance's Department of Economic Affairs has recently released updated guidelines for Public Provident Fund accounts opened under the name of minors, individuals holding multiple PPF accounts, and NRIs extending their PPF accounts through post offices under the National Small Savings (NSS) schemes.
The circular announcing these changes was issued on August 21, 2024, with the new regulations set to take effect from October 1, 2024.
According to an ET report, the circular says, "lt needs to be noted that the power to regularise irregular small savings accounts are vested with the Ministry of Finance. Therefore, all cases pertaining to irregular accounts should be forwarded to this division for regularisation by the Ministry of Finance."

1. PPF account for minor: In the case of PPF accounts opened under the name of a minor, the interest rate applicable to Post Office Savings Account (POSA) will be paid for such irregular accounts until the minor reaches the age of 18, at which point they become eligible to open their own account. From that point onwards, the standard PPF interest rate will be applied. The maturity period for these accounts will be calculated starting from the date the minor attains adulthood, i.e., the date from which they become eligible to open the account.
2.More than one PPF Account: The scheme rate of interest will be earned on the primary account as long as the deposit remains within the yearly limit. The investor chooses two accounts from any Post Office or agency bank, and after regularisation, the primary account is the one they wish to maintain.
If the primary account stays below the applicable investment limit each year, the balance in the second account will be combined with it. The primary account will continue to earn the prevailing scheme rate of interest after the merger. The second account's excess balance will be returned without interest.
It's important to note that apart from the primary and second accounts, all other accounts will not earn any interest from the date of opening.
3. Extension of PPF account by NRI: For NRI PPF accounts that are active and opened under the Public Provident Fund Scheme (PPF), 1968, where Form H did not explicitly inquire about the account holder's residency status, the account holder (Indian citizen who became an NRI during the currency of the account) will receive a POSA rate of interest until September 30, 2024. After that date, the aforementioned account will earn no interest.