Government Removes ₹50 Fee for PPF Nominee Updates
Government Removes ₹50 Fee for PPF Nominee Updates
New Delhi, April 3, 2025 – In a major relief for Public Provident Fund (PPF) account holders, the government has abolished the ₹50 fee for updating or modifying nominee details. The change, implemented under the Government Savings Promotion General Rules, 2018, was announced by the Finance Ministry through a recent notification.
Government’s Decision to Simplify Nominee Updates
Finance Minister Nirmala Sitharaman, in a post on social media platform ‘X,’ highlighted concerns regarding financial institutions charging a fee for nominee updates in PPF accounts. In response, the government amended the rules through Gazette Notification 02/4/25, ensuring that such updates are now free of charge.
The notification states:
“In Schedule II under ‘Fee to be charged for services,’ the words and figures ‘(b) Cancellation or change of nomination – ₹50’ shall be deleted.”
This move is expected to simplify the nomination process and ensure hassle-free fund transfers in case of the account holder’s demise.
Banking Amendment Bill 2025: Key Highlights
The Banking Amendment Bill 2025, recently passed, also introduces improvements in the nomination process. Under the new provisions, account holders can now nominate up to four individuals to receive deposits, items in safe custody, and safety locker contents.
Recently was informed that a fee was being levied by financial institutions for updating/modifying nominee details in PPF accounts.
— Nirmala Sitharaman (@nsitharaman) April 3, 2025
Necessary changes are now made in the Government Savings Promotion General Rules 2018 via Gazette Notification 02/4/25 to remove any charges on… pic.twitter.com/Hi33SbLN4E
PPF: A Reliable Investment Option
PPF remains a popular long-term investment choice, offering a 15-year lock-in period and a 7.1% annual interest rate (compounded yearly). While its returns may seem lower compared to the Employee Provident Fund (EPF) and other investment options, its tax-free benefits and compounding growth make it an attractive wealth-building tool. The government periodically reviews PPF interest rates alongside other small savings schemes.
Impact on Investors
The decision to remove the nominee update fee is expected to benefit millions of PPF account holders, making account management easier and more user-friendly.
