New PPF Rules for 2024: Three Significant Changes Effective October 1


1. Accounts Opened in Minors’ Names:

For PPF accounts initially opened by minors, interest will be paid at the Post Office Savings Account (POSA) rate until the account holder turns 18. The maturity period will then be calculated from the date the minor reaches adulthood, marking eligibility to fully manage the account.

2. Multiple PPF Accounts: 

Investors with more than one PPF account will see changes in how interest is handled. If the total deposits across all accounts are within the annual limit, the primary account will continue to earn interest at the current scheme rate. Any excess in secondary accounts will be merged into the primary account, with surplus funds refunded without interest. Additional accounts beyond the second one will earn zero interest from their opening dates.

3. NRI PPF Accounts: 

Non-Resident Indians (NRIs) with PPF accounts that were opened without specifying their residency status will receive POSA interest until September 30, 2024. Post this date, these accounts will earn no interest.

Sukanya Samriddhi Yojana (SSY) Updates

1. Guardian Changes: 

Accounts opened by grandparents rather than legal guardians will require a transfer of guardianship to the natural parents or a legally appointed guardian.

2. Irregular Accounts:

Families with more than two SSY accounts will face closures of excess accounts, deemed to be in violation of scheme rules.

General Information

The new rules are designed to ensure that the benefits of these schemes are distributed fairly and to address irregularities. The DEA has emphasized that the authority to regularize such accounts lies with the Ministry of Finance. Investors are advised to forward cases of irregular accounts to the ministry for appropriate action.

These updates aim to modernize the administration of these popular savings schemes, which offer tax benefits and secure returns, contributing to their continued popularity among investors in India.