PPF Rules: Many rules related to PPF have changed from today, understand in simple language!

PPF Interest Rate: The Finance Ministry has changed many rules related to PPF from October 1. After the implementation of the new rules, some people will benefit from them while some may suffer losses. Let's know what effect these will have on you?

PPF New Rules: If you also invest in PPF, then this news is of use to you. The Department of Economic Affairs of the Ministry of Finance has made a big change in the Small Savings Scheme from today i.e. October 1, 2024. The new rules will apply to managing PPF accounts, minor account holders, multiple account holders and NRIs. Let us know which rules related to PPF account have been changed by the government from today? Also, we will know whether you benefit or lose from the new rules?

Big update on PPF account for children

There is a big update regarding PPF accounts opened in the name of children. According to the new rule, if you have opened a PPF account in the name of a child, then till he/she turns 18, the concerned account will get interest like a post office savings account. When the child becomes an adult, interest will be given on the concerned account as per PPF. This change has been made because the government came to know that some people have opened separate PPF accounts in their name and in the name of their children. The maturity period of these accounts will start from the day the child becomes an adult. When they grow up, it will be easy for them to manage their money.

Advantage or Disadvantage: The child's PPF account will not get the same interest as before. The interest rate of PPF is 7.1 percent, on which now interest will be available like a savings account.

Interest will be available only on primary and secondary accounts

. Some people manage more than one PPF account. This means that they invest Rs 1.5 lakh annually in several accounts. It has been clarified in the new rule that you will get interest on multiple accounts as long as it is within the investment limit of Rs 1.5 lakh annually. If the total balance of all accounts is below 1.5 lakh, then the extra balance of any secondary account will be merged into the primary account. But if there is any amount left in the secondary account, then the money above the fixed limit will be returned without any interest. The special thing is that interest will not be available on any account other than primary and secondary account. Advantage

or disadvantage: Some people invest more than Rs 1.5 lakh in more than one PPF account. Due to this, they used to get 7.1 percent interest on each account. But this will not happen now.

Rules changed for NRIs as well

The new rules are also related to NRIs who have existing PPF accounts. Such NRI account holders can retain their accounts till maturity, however, they will receive POSA interest only till September 30, 2024. After this date, these accounts will not earn any interest unless they meet the specific residence criteria given in Form H. This adjustment mainly affects Indian citizens who became NRIs while their PPF accounts were active.

Advantage or Disadvantage: People who still visit India and have a PPF account. They will get interest till September 30, 2024. After this, they will have to follow the criteria given in Form H as per the rules.