Now Reading: NRIs can keep PPF, but foreign citizens lose account
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NRIs can keep PPF, but foreign citizens lose account
NRIs who opened a PPF account while resident in India can continue contributing to it until maturity, Livemint reports. They must maintain a minimum deposit of Rs 500 per year to keep…
The Story in Brief
NRIs who opened a PPF account while resident in India can continue contributing to it until maturity, Livemint reports. They must maintain a minimum deposit of Rs 500 per year to keep the account active. However, the 15-year tenure cannot be extended, a benefit only resident Indians get. If the account holder acquires foreign citizenship, the account is closed from the last day of the month before the citizenship change. The balance then earns only the Post Office Savings Account rate until formal closure. Maturity proceeds are credited to a Non-Resident Ordinary (NRO) account and are non-repatriable, though up to $1 million can be remitted overseas per year after taxes, subject to RBI guidelines.
The Indian Opinion
A common exaggeration is that NRIs lose all access to their PPF savings the moment they leave India. In reality, NRIs can continue contributing until maturity, and only those who acquire foreign citizenship face immediate closure. Another lazy narrative paints PPF as a trap for expats, ignoring that funds can be repatriated via an NRO account up to $1 million (about Rs 8.3 crore) per year after taxes. The real test for any NRI is to track the exact date of citizenship change, that determines when the interest rate drops from 7.1% to savings-account levels.
Source: livemint.com
This story was synthesised by AI from the source linked above.
