You are not eligible to make further contributions to a Public Provident Fund (PPF) account as a Non-Resident Indian (NRI). NRIs aren’t allowed to register new PPF accounts or keep their current ones active, per Reserve Bank of India (RBI) regulations. NRIs who held PPF accounts prior to becoming NRIs are still able to do so until the accounts mature, but they are not able to make any new contributions.
You have several choices when your PPF account matures:
- Withdrawal: Following maturity, you will be able to take out the whole amount in your PPF account. There is no tax on this sum.
- Extension without additional contributions: After maturity, you can continue to contribute to your PPF account for up to five additional years at a time. Interest will still be paid on the balance at the current rate.
- Extension with more contributions: You have the option to apply for an extension with additional contributions if you would like to keep making payments to your PPF account. Nevertheless, NRIs are not eligible for this option.
- Transfer to spouse: In the event that your spouse resides in India, you may assign them ownership of your PPF account so they can keep making contributions.
It’s important to remember that when it comes to their financial activities in India, NRIs must abide by the rules set forth by the Foreign Exchange Management Act (FEMA). Consequently, as an NRI managing your PPF account, it is imperative that you make sure you are in compliance with FEMA laws.
