Non-resident Indians (NRI) can no longer avail same rates in select small savings schemes like Public Provident Fund (PPF) and National Saving Certificates (NSC). As per new rules issued by the government, these investments will be deemed closed on the day the investor becomes a non-resident. Also, they will be paid interest at the much lower post office savings account rate at 4 per cent p.a. The government notified the amended rules in an official gazette.
Amendment to the Public Provident Fund Act, 1968 read, “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.” Interest will be paid at the rate of 4 per cent applicable to the post office savings. The Public Provident Fund (Amendment) Scheme, 2017, said, “Interest shall be paid at the rate applicable to the post office savings account, from time to time, from such day and up to the last day of the month preceding the month in which it is actually encashed.”
