Non Resident Indians (NRIs) are not eligible to open a new Public Provident Fund account under the existing rules. However, according to Zee News reports, a resident who subsequently becomes a Non Resident Indian during the currency of the maturity period prescribed under Public Provident Fund Scheme may continue to subscribe to the Fund till its maturity on a Non Repatriation Basis. This means NRIs can maintain their existing PPF accounts but cannot open new ones or extend them beyond maturity.
As reported by Zee News, Non Resident Indians are not eligible to extend/continue PPF account after maturity. The accounts opened under such category cannot continue beyond maturity. Therefore, any subscription made by the depositor is irregular and not entitled for interest. Amount deposited after maturity, shall be refunded to the account holder without interest. This creates a significant distinction between NRIs and resident Indians regarding PPF account continuation after the initial 15-year maturity period.
According to Zee News reports, if in any financial year, minimum deposit of ₹500 in case of Public Provident Fund Account is not made, the said PPF account shall become discontinued. A discontinued account can be revived by the depositor before maturity of the account by deposit of minimum subscription (i.e. ₹500) + ₹50 s default fee for each defaulted year. For Public Provident Fund, the interest rates are 7.1% per annum (compounded yearly). The minimum balance for PPF is ₹500 while maximum ₹1.5 lakh can be deposited in a financial year, with deposits allowed in lump-sum or installments.
As reported by Zee News, PPF matures after 15 years, and account holders can either withdraw the full balance, extend the account without deposits, or extend it with deposits by submitting Form H within one year. If no action is taken, the account is automatically extended for 5 years without new deposits, but interest continues on the balance. With fresh contributions, deposits up to ₹1.5 lakh per year are allowed, withdrawals are capped at 60 percent of the balance, and tax benefits continue. However, Non-Resident Indians cannot extend a PPF account after its initial 15-year maturity period.
