No fee for PPF, NSC, SCSS updating nominees; name up to 4 individuals
TNN News : Finance Minister Nirmala Sitharaman said on Thursday no charges will be levied for updating or adding nominees in Public Provident Fund (PPF) accounts, providing relief to users of the small savings scheme. Sitharaman made the statement after reports that financial institutions were charging a fee for such modifications.
“Necessary changes are now made in the Government Savings Promotion General Rules, 2018 via Gazette Notification dated April 2, 2025, to remove any charges on the updation of nominees for PPF accounts,” said Sitharaman on X.
This means that account holders of the Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), National Savings Certificate (NSC), and other small savings schemes can now update, modify, or add nominees without any charges. Earlier, a fee of Rs 50 was applicable for cancellation or modification of nomination details in small savings schemes, including PPF.
PPF is popular due to its tax status. Investments made under Section 80C of the Income Tax Act allow deductions up to Rs 1.5 lakh annually. Additionally, interest earned and withdrawals at maturity are entirely tax-free. These benefits make PPF an attractive long-term investment option for individuals seeking secure returns with tax advantages.
In addition to changes in the savings scheme rules, the recently passed Banking Amendment Bill 2025 also introduces key reforms. The bill now allows individuals to nominate up to four persons for the disbursal of funds in deposit accounts, and for accessing articles kept in safe custody or safety lockers.
Another significant provision in the Bill pertains to the redefinition of the term ‘substantial interest’ in a bank. The monetary threshold has been raised from Rs 5 lakh to Rs 2 crore — a much-needed revision considering the limit was set nearly six decades ago.
