Can an NRI deposit money in an existing PPF account?

"I want to know whether an NRI can deposit money in his existing PPF account. Also, can I continue depositing up to Rs 1.5 lakh per annum till my account completes 15 years?" - Sumit Kohli

Yes, you can deposit money into your PPF account. In fact, if any individual opens a Public Provident Fund (PPF) account as an Indian resident and later moves abroad before the 15-year maturity period, they are still allowed to make contributions until the account matures.

As for the second part of your question, both Indian residents and NRIs can contribute up to Rs 1.5 lakh per year until the account reaches maturity.

However, there are three things NRIs should be aware of:

• You cannot open a new Public Provident Fund (PPF) account.
  
• As an NRI, you cannot extend the PPF account upon maturity or make further contributions after it matures. (Normally, PPF subscribers can extend their account in five-year blocks after the initial 15-year maturity.)
  
• It's important to notify your bank of any change in residency status. You must open a Non-Resident Ordinary (NRO) account, as the PPF proceeds will be transferred to this account upon maturity.

Also read: NPS vs PPF vs EPF: The best retirement investment option

This article was originally published on October 03, 2024.