Can NRI Open PPF Account?

Hi Buddy,

I am an NRI, staying abroad for a period of 20 years. I am having investments in several Indian banks. However, I also wanted to invest in Public Provident Fund (PPF), but I was perplexed and was wondering about, ‘can NRI open PPF account?’

This particular question was bothering me, hence I started researching the same online. I would like to share a few insights that I gained about it.

In its 15-year maturity term, the PPF programme is a highly beneficial tax-saving cum investing mechanism that gives fantastic interest rates and compounding benefits.

Unfortunately, non-resident Indians cannot open, operate, or manage PPF accounts.

However, if a person establishes a PPF account as an Indian citizen and then becomes an NRI, the account will continue to be operational.

While many Indian citizens have used this option, there is still debate about whether NRIs are authorised to use these PPF accounts. I was a bit upset, and just to reconfirm, I asked, “can NRI have PPF account in India?” one of my pals who worked for a well-known Indian bank.

He, too, emphasised that any person who is a non-resident Indian is ineligible to open this account. An individual with NRI status is ineligible to open, operate, or manage a PPF account. He also pointed out that,

Although it is feasible to open a PPF account despite being an NRI (due to system inefficiencies, unintentionally opening an account, etc. ), it should be noted that such an individual may face severe legal consequences. If an NRI holds a PPF account in his or her name, the best course of action is to contact the appropriate authorities and request that the account be cancelled.

Now that I am sanguine that I will not be able to invest in PPF, I have discovered that apart from PPF, NRIs have a variety of investment choices. 

• Fixed Deposits 

Fixed deposit options include NRE, NRO, and FCNR

• Direct Equity

A DEMAT account, Portfolio Investment Scheme, or NRE/NRO account is used to invest directly in the stock market

• Mutual Funds

There are a variety of options available, ranging from debt to equity

• Property

An NRI can always invest in real estate in India. This is an area that deserves special attention

• National Pension Schemes

This is a government-sponsored programme that offers both debt and equity investment choices. It also provides tax advantages

• Unit Linked Insurance Plans, or ULIPs, 

are a type of insurance that combines investing and insurance

• Government Securities

These are government of India treasury bonds in which an NRI can invest

I conclude my answer here. I hope this suffices your query about,

c

an NRI open PPF account?

I am currently investing in property in India, for which I was planning to see the home loan eligibility through this,

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