Public provident fund (PPF) subscribers will not have to pay a fee while updating nominee details after the government did away with the charge, finance minister Nirmala Sitharaman said on April 3.
The minister’s post on the X platform came after changes were made to the Government Savings Promotion General Rules, 2018 via a gazette notification released by the finance ministry a day earlier.
The Rs 50 fee charged for cancelling or changing nominations in PPF accounts has been scrapped.
"Recently (I) was informed that a fee was being levied by financial institutions for updating/modifying nominee details in PPF accounts. Necessary changes are now made in the Government Savings Promotion General Rules 2018 via Gazette Notification 02/4/25 to remove any charges on the updation of nominees for PPF accounts," the finance minister said on X.
"The Banking Amendment Bill 2025, passed recently, allows nomination up to 4 persons for payment of depositors' money, articles kept in safe custody and safety lockers."
Parliament passed the Banking Amendment Bill, 2025, in March. The new rules allow bank account holders to appoint up to four nominees.
Sitharaman had said holders will soon have the flexibility to choose between two types of nominations — "successive" and "simultaneous". However, for those renting bank lockers, only successive nominations will be permitted, ensuring a clear line of succession for accessing the locker, preventing potential disputes.
The amendment introduces two methods of multiple nominations — simultaneous and successive. By clearly identifying nominees and following these methods, account holders can reduce the risk of disputes among nominees, ensuring a smoother transfer of assets.
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