Can NRIs send money to PPF account?

Non-Resident Indians (NRIs) cannot directly open a new Public Provident Fund (PPF) account in India. However, if an individual opened a PPF account while they were a resident of India and subsequently became an NRI, they are allowed to continue making contributions to that account until it matures (15 years from the date of opening). Here are some key points regarding NRIs and PPF accounts:

1. Continuation of Existing Accounts:

NRIs can continue contributing to an existing PPF account they opened before becoming an NRI. However, they cannot extend it beyond the initial 15-year maturity period.

2. Deposit Limits and Interest:

The maximum deposit limit remains the same at ₹1.5 lakh per year, and the interest earned on the PPF balance is tax-free in India. But NRIs should check if the interest is taxable in their country of residence.

3. No New Accounts:

NRIs are not allowed to open new PPF accounts once their residency status changes to non-resident.

4. Account Closure on Maturity:

Upon maturity, NRIs cannot extend the PPF account further. They must close it and withdraw the proceeds.

NRIs interested in continuing with long-term, tax-saving investments may consider alternatives like the National Pension System (NPS) or other investment options in India suited to their needs and residency status.

Also read: How to Withdraw Your Provident Fund (PF) When You’re Outside India