No fee for updating nominees in PPF accounts: FM Nirmala Sitharaman

The Union Finance Minister Nirmala Sitharaman announced on Thursday that the government has eliminated any fees for updating or adding nominees to Public Provident Fund (PPF) accounts. This change has been formalised through a recent notification.

Previously, it had been reported that financial institutions were charging a fee for updating or modifying nominee details in PPF accounts.

Sitharaman addressed this issue in a post on social media platform X (formerly Twitter), stating that necessary amendments have been made in the Government Savings Promotion General Rules 2018 through a Gazette Notification dated April 2, 2025, to remove these charges.

The new rules have abolished the Rs 50 fee that was levied for the cancellation or modification of nominations in small savings schemes run by the government.

Additionally, the Finance Minister highlighted changes introduced by the recently passed Banking Amendment Bill 2025. The Bill now allows for up to four nominees to be designated for the payment of a depositor’s money, articles in safe custody, and items in safety lockers.

Another significant change brought about by the Bill pertains to the definition of ‘substantial interest’ in a bank. The threshold for this term will increase from Rs 5 lakh to Rs 2 crore, a change that reflects economic realities, as the original limit was established nearly six decades ago.

The Bill also proposes an extension in the tenure of directors (excluding the chairman and whole-time director) of cooperative banks from 8 to 10 years, aligning with the provisions of the Constitution (Ninety-seventh Amendment) Act, 2011.

Source: Business Standard