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Now, PPF a/c will be closed, NSCs encashed if holder becomes an NRI

The interest payable would be up to the date of the account closure, it said.

IANS  |  New Delhi 

PPF a/c will be closed, NSCs encashed if holder turns NRI

Amending rules on post office savings schemes like the Savings Certificates (NSC) and (PPF), the government has notified that such accounts would be closed prior to maturity in case of holders changing their personal status to become (NRIs).

The amended rules were notified in the official gazette earlier this month.

The amendment to the Scheme, 1968, says: "If a resident who opened an account under this scheme, subsequently becomes a non-resident during the currency of the maturity period, the account shall be deemed to be closed with effect from the day he becomes non-resident."

The interest payable would be up to the date of the account closure, it said.

A separate notification on NSCs said in case of a similar change of status of the certificate holder before the maturity period, "the certificate will be encashed, or deemed to be encashed on the day he becomes non-resident" and interest will be paid accordingly.

NRIs are not allowed in instruments like the Savings Certificates, Public Provident Fund, Monthly Income Schemes and other time deposits offered by the post office.

Asked to comment in this regard, an investment consultant said that it is unclear why NRIs are not allowed to invest in post office schemes.

Last month, the government had retained the interest rate on for October-December unchanged at 7.8 per cent, in line with the rates for small savings schemes.

First Published: Sun, October 29 2017. 18:30 IST
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