The Indian government recently announced that Public Provident Fund (PPF) accounts had to be closed when a person became a Non Resident Indian (NRI).
A few months ago in October, the government announced that if a resident, who opened an account under this scheme, and 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 a non-resident.
On February 23, 2018, the government’s Department of Economic Affairs (DEA) released an office memo keeping its earlier notification in abeyance (or temporarily dismissed). The earlier notification was regarding the NRI’s PPF account released on October 2, 2017. According to the recent memo
Subject: Public Provident Fund (PPF) accounts held by Non Resident-regarding.
The undersigned is directed to refer to this Department’s notification GSR No.
1237(E) dated 03.10.2017 regarding amendment in PPF Scheme, 1968. As per the said
notification, 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 a non-resident.2. It has now been decided to keep the said notification in abeyance till the further
order in this regard.
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