Non-resident Indians(NRIs) face restrictions on opening or managing PPF accounts in India. However, there are provisions for those who initially open a PPF account as Indian Citizen and later acquire NRI status
The PPF is a favoured long-term savings and investment vehicle offered by the Indian government, However, specific rules are there to govern NRIs participation in the PPF scheme
Investment till Maturity
Individuals who opened PPF accounts while residents of India and later became NRIs can continue investing in the same accounts until maturity. Thus, even after transitioning to NRI status, they can sustain contributions and accrue interest until the account reaches its maturity date
No Fresh Contributions after Maturity
Once a PPF account matures, NRIs are barred from making further contributions, regardless of their residential status. This restriction applies after the 15-year maturity period, during which no additional deposits are permitted
Non- Repatriation Basis
NRIs can maintain their PPF accounts until maturity under non repatriation terms, allowing continued contributions without the option to repatriate funds or convert them into foreign currency. Interest accrues as per prevailing rates, ensuring the account remain active
PPF account holders transitioning to NRI status must inform their account holding institutions within one month to ensure compliance with regulations and facilitate continued contributions until account maturity