I have a PPF account which hit 15 year maturity in 2014, it was extended by 5 years to next maturtiy at 2019. Due to new rules for NRIs I cannot extend the account for another 5 years. I somewhere read that interest paid to NRIs has been lowered to 4%. Is that correct?
No. Presently, there’s nothing like that. What you must have read is the PPF Notification of 2017 which reduced the interest rates for NRIs to 4%. But later in 2018, the rules of PPF for NRIs were amended again.
The highlights of the amendment are as follows:
1. NRIs can’t extend PPF Account post maturity.
2. Interest Rates will be reviewed by the government of India every quarter and can be changed.
3. Interest earned is exempt from taxes.
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