PPF Account Nominee News: Finance Minister Nirmala Sitharaman has said that no fee will be charged for making a 'nominee' for PPF accounts or making any changes to them.

PPF Account Nominee Update: Union Finance Minister Nirmala Sitharaman has said that no fee will be charged for making a 'nominee' for Public Provident Fund (PPF) accounts or making any changes in it as the government has made necessary changes through notification.

The Finance Minister wrote on the social media platform 'X', recently there has been information about financial institutions charging fees for adding / modifying the details of the 'nominee' person in PPF accounts. The 'nominee' has a legal right over the amount of the original account holder.

Necessary changes made in the rule

Nirmala Sitharaman has said that necessary changes have been made in the Government Savings Promotion General Rules 2018 through the gazette notification of April 2, 2025 to remove any fee on change in information related to 'nominee' for PPF accounts.

In the gazette notification, the fee of Rs 50 for canceling or changing the nomination for government-run small savings schemes has been abolished. He said, "The recently passed Banking Amendment Bill 2025 allows a maximum of four people to be made 'nominees' for payment of depositors' money, goods kept in safe custody and safety lockers. "

The current rate was fixed six decades ago

Another change in the bill relates to redefining the term "substantial tax" of a person in the bank. There is a provision to increase this limit from the current Rs 5 lakh to Rs 2 crore. The current rate was fixed almost six decades ago.

The law also seeks to increase the tenure of directors (except chairman and whole-time director) in co-operative banks from eight to 10 years to bring it in sync with the Constitution (97th Amendment) Act, 2011