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Can NRIs Invest In A Public Provident Fund Or PPF?

Adhil Shetty


Q. I had invested in a PPF account when I was a resident India. Since I am a non-resident Indian now, can I continue with my PPF account? Rosy Joshi

A. Non-resident Indians are not allowed to open a new account in Public Provident Fund (PPF) in India. However, an NRI can continue with the existing PPF account if it was opened before moving out from the country. You can continue investing in PPF till its maturity. The tenure of a PPF investment is 15 years and it can be extended, but this facility is not available for NRIs. It is also important to note that funds held in PPF account cannot be transferred overseas and can only be used in India.

Your investment could be impacted by currency fluctuation. So, your decision to continue your investment depends on your long-term goals and the country you plan to settle in.

PPF is a great long-term investment options for investors looking for safe and guaranteed returns. It makes for an attractive investment option as the interest earned and returns are not taxable. Investment in PPF helps you avail tax deduction for amount deposited upto Rs 1.5 lakh in a financial year. You can keep a PPF account active with amount as small as Rs. 500 in a financial year.

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