Non-resident Indians (NRIs)
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Legal status, rules
PPF a|c to be closed, NSCs encashed if holder turns NRI
PPF a|c to be closed, NSCs encashed if holder turns NRI, Oct 30 2017: The Times of India
Amending rules on post office savings schemes like the National Savings Certificates (NSC) and Public Provident Fund (PPF), the government has notified that such accounts would be closed prior to maturity in case of holders changing their personal status to become nonresident Indians (NRIs).
The amended rules were notified in the official gazette in October 2017.
The amendment to the PPF Scheme, 1968, says: “If a resident who opened an account under this scheme, subsequently becomes a non-resident during the currency of the maturity period, the account shall be deemed to be closed with effect from the day he becomes non-resident“.
The interest payable would be up to the date of the account closure, it said.
A separate notification on NSCs said in case of a sim ilar change of status of the certificate holder before the maturity period, “the certificate will be encashed, or deemed to be encashed on the day he becomes non-resident“ and interest will be paid accordingly.
NRIs are not allowed in instruments like the National Savings Certificates, Public Provident Fund, Monthly Income Schemes and other time deposits offered by the post office.
In September 2017, the government had retained the interest rate on Public Provident Fund for October-December unchanged at 7.8%, in line with the rates for small savings schemes.
