If you have a Public Provident Fund (PPF) account, here’s some good news. The government has made an important change that benefits all PPF account holders—there will no longer be any charges to update or change a nominee.
Earlier, financial institutions used to charge Rs.50 for updating nominee details. However, a recent government decision has scrapped this charge, ensuring that account holders can modify nominee details at no additional cost.
Government Changes Rules to Remove Nominee Update Charges
On April 2, 2025, the government issued a Gazette Notification (GSR 214-E), which amended the Government Savings Promotion General Rules, 2018. This amendment has completely removed the Rs.50 fee that was earlier imposed on PPF account holders for updating or changing nominees.
This move was necessary because several banks and post offices were charging fees for nominee updates, which was an additional burden on customers. By eliminating this charge, the government aims to make nominee updates more accessible and hassle-free.
Finance Minister Nirmala Sitharaman’s Announcement
Finance Minister Nirmala Sitharaman shared this update on social media platform X (formerly Twitter). She mentioned that many financial institutions were imposing nominee update charges, which were not in the interest of account holders.
With this rule change, PPF account holders can now update their nominee details without worrying about any additional fees. This will encourage more people to keep their nominee information up-to-date, ensuring smooth fund transfers in case of unforeseen circumstances.
Why This Change is Important for PPF Holders
PPF is one of the most popular long-term investment options in India, offering tax-free returns and secure savings. Many people invest in PPF for their retirement or future financial needs. Having an updated nominee ensures that in case of the account holder’s unfortunate demise, the funds are easily transferred to the rightful beneficiary without legal complications.
Earlier, some people avoided updating nominee details because of the extra charge. Now, with the removal of this fee, more people are expected to ensure their nominee information is accurate and updated.
Key Benefits of the New Rule for PPF Account Holders
✔️ No Extra Charges: The Rs.50 fee for nominee updates has been abolished.
✔️ Easy Nominee Changes: Account holders can update nominee details without any restrictions.
✔️ Smoother Fund Transfer: Ensures that PPF savings reach the right nominee without legal hurdles.
✔️ Encourages More Updates: More people will now update their nominee details, avoiding future disputes.
Banking Amendment Bill 2025 Brings More Flexibility
Along with this change, the Banking Amendment Bill 2025 has introduced another useful feature for account holders. Now, individuals can add up to four nominees to their PPF account for:
- Money Deposits
- Reserved Goods
- Other Financial Assets
This means account holders can now allocate their savings among multiple nominees, ensuring better financial planning for their family members.
What PPF Account Holders Should Do Now
If you haven’t updated your nominee details recently, now is the best time to do it. With no charges applicable anymore, updating nominee details is free and ensures your savings go to the right person.
Simply visit your bank or post office where your PPF account is held, fill out the nominee update form, and submit it. You can also check with your financial institution to see if the update can be done online.
