New Delhi, April 5, 2025 – In a major relief for millions of small savers, the Central Government has announced that banks and financial institutions can no longer charge any fees for updating or modifying nominee details in Public Provident Fund (PPF) accounts. This decision comes following a crucial amendment to the Government Savings Promotion General Rules, 2018.
The new regulation, effective from April 2, 2025, ensures that nominee-related services for PPF accounts will now be completely free of cost, eliminating a previously levied charge of ₹50 for cancellation or updating of nomination.
Major Amendment in Favor of PPF Account Holders
The Ministry of Finance issued an official gazette notification stating the removal of charges listed under Schedule II of the Government Savings Promotion General Rules, 2018. The notification specifically omits the clause that allowed a ₹50 charge for updating or cancelling a nominee in PPF accounts.
This move aligns with recent banking reforms, including the Banking Amendment Bill 2025, which allows depositors to nominate up to four individuals for bank deposits, safe custody items, and safety lockers. This uniformity is part of the government’s effort to simplify small savings schemes under one legal framework.
Finance Minister Confirms via Microblogging Site X
Finance Minister Nirmala Sitharaman, in a post on microblogging platform X (formerly Twitter), confirmed the update. She stated, “Recently I was informed that certain financial institutions were charging fees for nominee updates in PPF accounts. To address this, necessary amendments have been made to ensure that no fees are charged going forward.”
The notification (Gazette Notification 02/4/25) reflects the government’s commitment to protect the interests of small investors and streamline procedures across public savings schemes.
PPF: A Trusted Long-Term Investment Tool
The Public Provident Fund (PPF) remains one of India’s most preferred long-term investment options, offering:
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Guaranteed returns
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Tax-free interest
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Minimum investment of ₹500
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Maximum limit of ₹1.5 lakh annually
With this nominee update relief, PPF becomes even more attractive for investors looking for safe and transparent savings instruments.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
