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NRI, PPF A/cs To Be Closed Prematurely Upon Change Of Residential Status To NRI
As per a new amendment, individuals on change of residential status to NRIs cannot continue their investments in PPF or NSC account and they have to be closed down on the date of change of status to
The amendment has been effected in the post office savings schemes including NSCs and PPFs which have been notified in the official gazette early this month. The amendment to the PPF scheme, 1968, said, "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 non-resident".
The notification further said, the interest payable on such accounts shall be up to the date of the account closure.
In respect of the NSC accounts, the amendment says, that on change of residential status of a NSC holder before its maturity period to NRI, , "the certificate will be encashed, or deemed to be encashed on the day he becomes non-resident" and interest towards it shall be paid in accordance.
NRIs cannot invest in NSCs, PPFs, MIS or other time deposits by the post office. For the quarter October to December, the government in line with interest rate on other small saving schemes, has maintained rate @ 7.8% for the PPF account.
