No National Savings Certificates and Public Provident Fund for NRIs

Sushubh

Administrator
[OP]
Oct 29, 2004
415,529
12,854
Gurugram
PPF a/c will be closed, NSCs encashed if holder turns NRI

Amending rules on post office savings schemes like the National Savings Certificates (NSC) and Public Provident Fund (PPF), the government has notified that such accounts would be closed prior to maturity in case of holders changing their personal status to become non-resident Indians (NRIs).
The amendment to the PPF Scheme, 1968, says: "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 interest payable would be up to the date of the account closure, it said.
A separate notification on NSCs said in case of a similar change of status of the certificate holder before the maturity period, "the certificate will be encashed, or deemed to be encashed on the day he becomes non-resident" and interest will be paid accordingly.