PPF Account Nominee Update Rules: Finance Minister Nirmala Sitharaman said that the government has made necessary changes through notification.
PPF Account Nominee Update Rules: There is good news for lakhs for Public Provident Fund (PPF) as Finance Minister Nirmala Sitharaman on Thursday said that no fee will be charged for the updation or addition of nominees. The Finance Minister said that the government has made necessary changes through notification. These changes are applicable with immediate effect.
PPF Account Nominee Update/Addition Fee
Recently, it was informed that a fee of Rs 50 will be levied by financial institutions for updating/modifying nominee details in PPF accounts.
However, necessary changes are now made in the Government Savings Promotion General Rules 2018 via Gazette Notification dated April 2, 2025, to remove any charges on the updating of nominees for PPF accounts, Sitharaman said.
Now, PPF account holders will not longer be required to pay the fee of Rs 50 for cancellation or change of nomination for small savings schemes run by the government.
PPF Account Nominee Update: How many nominees can be added?
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.
Another change in the bill relates to redefining of term ‘substantial interest’ of a person in a bank. The limit is sought to be enhanced to Rs 2 crore from the current Rs 5 lakh, which was fixed almost six decades ago.
The law also seeks to increase the tenure of directors (excluding the chairman and whole-time director) in cooperative banks from 8 years to 10 years so as to align with the Constitution (Ninety-Seventh Amendment) Act, 2011.
PPF Interest Rate
Government-backed PPF scheme offers an annual interest rate of 7.1 per cent – as per the most recent government small savings scheme rates. The scheme allows investors to deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakh annually in a PPF account.
