Money Excel - Personal Finance Blog

Menu
MENUMENU
MENUMENU
  • Home
  • Business Ideas
    • 225 Small Business Ideas
    • 40 Online Business Ideas
    • 20 Business Ideas for Beginners
    • 20 small manufacturing business
    • 30 Food Business Ideas
    • 100 Business Ideas low investment
  • Stock Market
    • Best Demat & Trading Accounts 2020
    • Best Stocks 2020 by Experts
    • Best Virtual Trading Apps
    • Best Stock Screener
    • Best Discount Brokers in India
    • Multibagger Stocks of LockDown
    • Rakesh Jhunjhunwala Portfolio
  • Mutual Funds
    • Best Mutual Funds 2020-21
    • Best Direct Mutual Fund Platform
    • Best Mutual Fund Mobile Apps
  • Incometax
    • Income Tax Slab FY 2020-21
    • Income Tax Calculator FY 2020-21
    • Income Tax Refund Request
    • Pay Advance Tax Online
    • Download New 15G -15 H Forms
  • Investment
    • Best Investment Ideas 2020
    • Long Term Investment Options
    • Best Investment Regular Income
    • Best Investment Options NRI
  • Credit Card
    • Best Credit Cards 2020-21
    • Best credit card for online shopping
    • Best Forex Card in India
    • Best Business Credit Cards
    • Credit Cards against Fixed Deposit
  • Insurance
    • Best Term Insurance Plans 2020
    • Best Health Insurance 2020
    • Best LIC Policy 2020
    • Best Car Insurance Companies
    • Best Mobile Insurance Companies
  • Downloads
Home
Personal Finance
NRI PPF New Rules – How NRI can withdraw money from PPF?

NRI PPF New Rules – How NRI can withdraw money from PPF?

Raviraj Parekh May 16, 2020

NRI PPF

NRI PPF – The PPF scheme is most popular and preferred investment option in India. The PPF scheme is recently amended by the government of India for NRI. As per new notified rules PPF account needs to close on the day the investor become NRI. This rule is also applicable to NSC. If the account is not closed it will only earn 4% return, whereas NSC will earn post office saving bank account return. NRI shall not be able to open PPF and NSC account going forward. This rule is applicable with recent effect.  This means current NRI PPF account will only earn 4% return instead of 7.8% return at present. The difference between old and new NRI PPF rule is shown below.

NRI PPF New Rules

  • As per the latest rules, NRIs cannot open a new PPF account in India.
  • NRI’s are not allowed to continue PPF account up to maturity.
  • PPF account of NRI will be closed immediately once their status changed to NRI from resident Indian.
  • The existing PPF account will get only 4% interest.

The interest rate of 4% is not sufficient to even beat inflation. So, NRI with PPF account or NSC must be worried what to do? One option is stay invested and earn 4% return and the second option is to withdraw money from PPF and close the account. However, the big question is that if NRI is staying abroad how he/she can close NRI account. Here is a complete guide showing How NRI can withdraw money from PPF?

Also Read – RNOR Status NRI can save Tax up to 3 Years

How NRI can withdraw money from PPF?

Do not miss below posts -
  • Two kinds of money problems – Rich Poor Story
  • SBI YONO – Integrated Lifestyle and Digital Banking App
  • Unified Payment Interface UPI – Features Benefits Usage

If you are an NRI planning to withdraw money from PPF due to this new rule please note that your request can be processed by bank or post office only if your signature is attested by an authority. The authority of attestation can be Gazette officer or PSU Bank officer. Follow the steps given below to close your NRI PPF account.

Step 1 – Send PPF closing form to your relative, parents or friend in India where you have NRE/NRO account. You also need to send authority letter stating that you are allowing them to do withdrawal process by closing PPF account on your behalf.

Step 2 – The person needs to visit bank where NRI have NRE/NRO account. They need to get attestation of the authority letter. After it is attested person has to visit bank or post office where PPF bank is held. The bank will accept the document and close the account.

Over to You –

If you are NRI it is advisable to close your PPF account and invest in either mutual funds or equity. Another alternative option for you is NPS.

Prev Article
Next Article
Tags:Close NRI PPF account Close PPF account NRI NRI PPF NRI PPF New rules NRI PPF NSC Rules NRI PPF rules

About The Author

Raviraj Parekh

Raviraj is the man behind moneyexcel.com. He is PGDBA, engaged in blogging for 10 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

8 Comments

  1. Uday

    Hi,
    Can we continue after returning to India?

    November 4, 2017
  2. Nirmish

    Hi Raviraj,

    Thanks for sharing this valuable information. Could you help us sending the forms mentioned in step 1.

    Best Regards
    Nirmish Sharma

    November 21, 2017
  3. Nirmish

    Hi

    Are you sure about this news, I called SBI customer care and they dont have any clue about such rules

    Regards

    November 21, 2017
  4. Raviraj Parekh

    No as per new rule NRI is not allowed to continue. If you return back to India and hold Indian resident you can reopen new PPF account.

    December 12, 2017
  5. Raviraj Parekh

    Yes sure,You can get even circular on this news.

    December 12, 2017
  6. Roop

    Hi ,

    I spent more than 6 years working in India , then became an NRI . I recently withdrew my PF by linking it through Adhar etc this May ’18 . But TDS was deducted. Is it eligible for IT return ? Whats the process?
    I can’t see the option in 2017-2018 IT return , it’ll be eligible for return next year 2018-2019 right?

    Thanks,
    Roop

    June 4, 2018
  7. Raviraj Parekh

    Dear Roop,

    Incometax is applicable if your income is above taxable limit.If TDS is deducted and you are looking for refund you need to file ITR. In order to avail refund your total income in India should be less than taxable limit.

    June 6, 2018
  8. vswami

    Wanting in clarity, in absolute terms ?!

    “RESIDENT Indian” X “NRI”

    Points requiring a special focus on:

    ‘RESIDENT’ is basically a tax concept,- that is, a creature of the IT Act, for its purposes;

    whereas ‘NRI’ is a concept specially adopted and used principally for RBI / banking purposes.

    Further, PPF is a special deposit account opened , and maintained, as mandated, for availing of the tax benefit(s) that entails. The concept ‘Indian’ used as a suffix to ‘RESIDENT’ to say the least, is quite confusing and misleading.
    Now, turning to the Post by,-

    Roop says:

    June 4, 2018 at 3:07 pm

    One has been left wildly wondering whether it is such a confusion that has resulted in being left with the predicament of ‘TDS’ complained of ?!

    July 1, 2018

Leave a Reply

Cancel reply

IIFL Demat Account

Search

Top Posts & Pages

  • Income Tax Calculator FY 2020-21 (AY 2021-22) – Excel Download
  • How to check Property Records and Land Records online in India?
  • Rakesh Jhunjhunwala Portfolio Holdings - January 2021
  • LIC Premium Paid Certificate Download For Income Tax Purpose - Online
  • 20 small manufacturing business ideas with low cost
  • 225 Small Business Ideas with Low Investment in 2021-22
  • Cash Deposit Machine Locator – How to find CDM Near You?
  • 30 Food Business Ideas with low investment
  • Income Tax Calculator FY 2019-20 (AY 2020-21) - Excel Download
  • Top 60 Manufacturing Business Ideas

Subscribe to Blog via Email

Join 5,474 other subscribers

Follow MoneyExcel

Money Excel – Personal Finance Blog

Personal Finance Blog
Copyright © 2021 Money Excel - Personal Finance Blog
| About |Downloads | Contact Us | Sitemap | Disclaimer | Privacy Policy |