Daijiworld Media Network - New Delhi

New Delhi, Apr 3: The government has issued a Gazette Notification prohibiting financial institutions from charging fees for updating or modifying nominee details in Public Provident Fund (PPF) accounts, Finance Minister Nirmala Sitharaman announced on Thursday.

The decision comes after reports surfaced that financial institutions were imposing fees for nominee updates in PPF accounts. “Necessary changes have now been made in the Government Savings Promotion General Rules 2018 via Gazette Notification dated April 2, 2025, to remove any charges on the updation of nominees for PPF accounts,” Sitharaman stated in a post on X, along with a copy of the notification.

The move follows the recent passage of the Banking Amendment Bill 2025, which allows depositors to nominate up to four persons for their savings, safe custody articles, and safety lockers. This aims to enhance convenience and transparency in financial transactions.

The Public Provident Fund remains one of the most secure long-term investment options, offering tax-free returns backed by the government. With a fixed interest rate and a 15-year lock-in period, PPF is designed to promote disciplined savings.

Deposits made in a PPF account qualify for tax deductions under Section 80C of the Income Tax Act. Both the interest earned and the maturity amount are exempt from tax, making it an attractive option for investors seeking security and growth.

PPF accounts offer partial withdrawal options after five years and allow loans against deposits. Account holders can extend their investment beyond the initial 15-year period in blocks of five years.

Any resident Indian, including minors, can open a PPF account. The minimum deposit required is Rs 500 per year, while the maximum limit is Rs 1.5 lakh per financial year.

The government’s latest directive aims to simplify financial transactions and encourage more individuals to utilize PPF as a savings instrument.