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Can NRIs Continue With Existing PPF Account In India?


Non Resident Indians (NRIs) are not allowed to open fresh PPF accounts. But, it's highly possible that NRIs have PPF account which existed before they became an NRI.


Such PPF accounts need not be closed and can continue.

Can NRIs Continue With Existing PPF Account In India?

Public Provident Fund (PPF), is one of the favorite financial instrument which helps as a tax saving instrument. Funds invested under the Public Provident Fund are tax-free and interest income and maturity is also tax-free.

Individuals can consider this financial product as part of retirement planning, or for kids education as the lock-in is for 15 years.

While PPF is a favorite product for Indians, NRIs are not permitted to invest in small savings or Public Provident Fund (PPF). Read more on NRIs and small savings

1) However, they can maintain the existing account opened when there were resident.

2) NRI can transfer the amount through cheque or can transfer funds from his NRE or NRO account. Read difference between NRE and NRO account

PPF account should be credit at least with Rs. 500 during one whole financial year. In case if you fail to do so, you will have to pay the penalty of Rs 50 for that year.


3) NRIs are not allowed to extend the period after maturity, whereas residents are allowed. Indian residents can extending their accounts after the 15-year tenure with or without the further subscription, for any period in a block of 5 years.

4) While, NRIs are allowed to continue with the account, can repatriate upto 1 million per financial year from his NRO account subject to certain conditions.

5) If you have taxable income in India, PPF is a better option as tax deduction will be available under 80C of Income Tax act.

Read more about: nri ppf investment provident fund
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