4 April 2025 (Punjab Khabarnama Bureau): Modifying details of the nominee in your Public Provident Fund (PPF) account will no longer result in a charge.
This is because “necessary changes” are being made to the Government Savings Promotion General Rules 2018.
“In the Government Savings Promotion General Rules, 2018, in Schedule II, under ‘Fee to be charged for services,’ the words and figures ‘(b) Cancellation or change of nomination – ₹50’ shall be deleted,” according to a Finance Ministry notification.
This new change has been effective since April 2, 2025.
In an X post, finance minister Nirmala Sitharaman called them “necessary changes”, adding that “the Banking Amendment Bill 2025, passed recently, allows nomination up to 4 persons for payment of depositors’ money, articles kept in safe custody and safety lockers.”
Nominee details in PPF accounts are important since funds lying in the account will get transferred to the designated beneficiary in the unfortunate event of the account holder’s demise.
What is PPF?
PPF is a long-term, tax-saving investment scheme offered and backed by the government. It currently has a lock-in period of 15 years for deposits, and provides an annual interest rate of 7.1%.
However, the interest is also compounded annually, making it an effective long-term wealth-building investment tool.
The government periodically reviews the PPF interest rate and the rates for other small-savings instruments.
Syummary: Finance Minister Nirmala Sitharaman announces removal of charges for updating nominee details in PPF accounts, effective from April 2, 2025