Great News for Citizens: Government Makes This Important PPF Update Free
Great News for Citizens: Government Makes This Important PPF Update Free
In a major relief for Public Provident Fund (PPF) account holders, the government has removed the ₹50 fee for updating or modifying nominee details. The change has been implemented under the Government Savings Promotion General Rules 2018 and has been effective since April 2, 2025, as per a notification from the Finance Ministry.
Key Changes in Nomination Rules
Finance Minister Nirmala Sitharaman, in a post on ‘X’, stated that she was informed about financial institutions charging a fee for updating nominee details in PPF accounts. In response, the necessary modifications were made in the Government Savings Promotion General Rules, 2018, via Gazette Notification 02/4/25, ensuring that account holders are no longer charged for such updates.
According to the notification:
“In Schedule II under ‘Fee to be charged for services,’ the words and figures ‘(b) Cancellation or change of nomination – ₹50’ shall be deleted.”
This move simplifies nominee updates, ensuring seamless fund transfers in case of the account holder’s demise.
Banking Amendment Bill 2025: Key Highlights
The Banking Amendment Bill 2025, recently passed, also enhances the nomination process for banking services. It allows account holders to nominate up to four individuals for receiving depositors’ money, articles in safe custody, and safety lockers.
PPF: A Secure Investment Option
PPF remains a popular long-term investment scheme, offering a 15-year lock-in period and an attractive 7.1% annual interest rate (compounded annually). While its returns may seem modest compared to EPF and other savings instruments, its compounding benefits and tax-free returns make it a valuable wealth-building tool. The government periodically reviews PPF interest rates along with other small savings schemes.
This decision is expected to benefit millions of investors, making PPF accounts more user-friendly and hassle-free.
