In a move that brings relief to millions of Public Provident Fund (PPF) account holders, Finance Minister Nirmala Sitharaman announced on Thursday that there will be no charges for updating or adding nominees to PPF accounts. The update comes after concerns were raised over financial institutions levying a fee for nominee modifications in small savings schemes.
Addressing the issue, the Finance Minister confirmed that changes have been officially made through a Gazette Notification dated April 2, 2025. The amendments have been made in the Government Savings Promotion General Rules, 2018, ensuring that account holders can now freely update their nomination details in PPF and other similar schemes.
This rule now applies to all small savings schemes including:
- Public Provident Fund (PPF)
- Senior Citizens Savings Scheme (SCSS)
- National Savings Certificate (NSC)
Earlier, a fee of ₹50 was applicable for cancellation or modification of nomination in these schemes. The removal of this charge aims to make small savings schemes more accessible and user-friendly for investors.
PPF remains a highly popular investment choice in India due to its tax-saving benefits and secure returns. Under Section 80C of the Income Tax Act, investments up to ₹1.5 lakh in PPF accounts are eligible for tax deductions. Additionally, the interest earned and the maturity amount are fully tax-free, making PPF a preferred savings option for long-term wealth creation.
Along with changes to the savings scheme rules, the Banking Amendment Bill 2025 has introduced key reforms. One major update allows individuals to nominate up to four persons for the disbursal of funds in bank deposit accounts and for access to safe custody items or lockers.
The bill also revises the definition of ‘substantial interest’ in banks. The monetary limit has been increased from ₹5 lakh to ₹2 crore, bringing it in line with present-day economic conditions. This limit had remained unchanged for nearly 60 years.
How to Change PPF Nominee?
Changing a nominee in a PPF account is a simple and now cost-free process. Here are the steps:
- Collect Form F from the post office or bank where the PPF account is held.
- Fill in nominee details and complete the required sections in the form.
- Submit the filled form to the bank or post office.
- Nominee details will be updated after submission and verification.
PPF nomination changes are commonly required in cases like death of an existing nominee, divorce, or updating the nominee from spouse to child.