PPF Account for NRIs in India

Non-resident Indians are not permitted to open or operate a PPF account in India. It is However, if a person opens a PPF account as an Indian citizen and later becomes an NRI then the account will remain active.

The PPF scheme is a highly beneficial tax saving cum investment instrument that offers incredible interest rates and compounding benefits in its 15-year maturity period.

While this option has been widely utilized by many Indian residents, there exists the confusion on whether NRIs are allowed to operate these PPF accounts.

Sadly, non-resident Indians are not allowed to open, operate, or run PPF accounts.

Here are some common questions relating to NRIs and PPF accounts:

  1. Can a non-resident Indian open a PPF account?

    No, any person who exists as a non-resident Indian does not qualify to open this account. NRI status disqualifies an individual from opening, operating and managing a PPF account.

  2. What if a resident Indian opened a PPF account, and later acquired NRI status? What if a resident Indian became an NRI after opening a PPF account?

    If a PPF account was created by an Indian national (resident Indian) who later became an NRI, he or she can continue to contribute to it and enjoy all the benefits.

    Nothing will happen to the account, it will not be closed, surrendered, or deemed invalid. The account and benefits can be enjoyed by the Indian turned NRI.

  3. What if a person with NRI status opens a PPF account?

    It is possible to open a PPF account despite being an NRI (through inefficiencies in the system, inadvertently opening an account, etc.) but it should be kept in mind that strict legal action can be taken against such an individual. If an NRI has a PPF account opened in his or her name, the best course of action to avoid any trouble is to get in touch with the concerned authorities and have the account closed.

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