Rules Change: The government has changed the rules of PPF, Sukanya Samriddhi Yojana and other small savings schemes. This decision to remove the charges related to adding and changing the nominee in PPF and other savings schemes is a relief for investors and depositors.
These changes made in banking laws are in line with modern needs and will provide more security to depositors. This will allow PPF account holders and other financial investors to update their account without any additional cost.
Rules Change: Now no one will have to pay money to add the name of the nominee in the Public Provident Fund. Finance Minister Nirmala Sitharaman has announced that no fee will be charged for adding or changing the nominee in Public Provident Fund (PPF) accounts. The government has changed the rules related to nomination in small savings schemes through a gazette notification on April 2, 2025. Earlier, a fee of Rs 50 was charged for changing or canceling the nomination. Along with this, the government has also changed the rules of small savings schemes including Sukanya Samriddhi Yojana (SSY) and National Savings Certificate (NSC).
Nomination fee for adding nominee in PPF account abolished
Finance Minister Nirmala Sitharaman has informed on the social media platform ‘X’ that complaints were being received about banks and financial institutions charging fees for adding or changing nominees. In view of this, the government has decided to abolish this fee. The nominee has a legal right over the amount of the original account holder. Therefore, this move is a big relief for PPF holders, allowing them to update or modify their nominee information without any additional fee.
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Changes in rules for savings schemes too
In the gazette notification, the fee of Rs 50 charged for cancelling or changing the nomination in government savings schemes has also been removed. This means that now the account holders of PPF, Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC) and other small savings schemes will not have to pay any additional fee for adding or changing the nominee.
Major change in Banking Amendment Bill 2025
Recently the Banking Amendment Bill 2025 has been passed, in which depositors are allowed to nominate a maximum of four people. This will provide more convenience and security to the account holders. Another important change in the banking law is that the definition of “Adequate Tax” has been updated. Earlier, this limit was Rs 5 lakh, which has now been increased to Rs 2 crore. This rate was fixed about 60 years ago and now it has been revised according to the current needs.
Tenure of directors in cooperative banks extended
According to the new amendment, the tenure of directors (except chairman and whole-time director) in cooperative banks has been increased from 8 years to 10 years. This amendment has been made in accordance with the Constitution (97th Amendment) Act 2011.
Key points related to PPF nominee update
- Now there will be no charge for adding or changing nominee in PPF accounts.
- The fee of Rs 50 for changing the nomination in all government savings schemes has been removed.
- In the Banking Amendment Bill 2025, a maximum of 4 nominees are allowed.
- The limit of substantial tax has been increased from Rs 5 lakh to Rs 2 crore.
- The tenure of directors in cooperative banks has been increased from 8 years to 10 years.
Also Read- Income Tax Calendar: Important deadlines by Income tax department in April 2025, check details
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