सं/No. 17-12/2025-GDS
भारत सरकार/Government of India
संचार मंंत्रालय /Ministry of Communications
डाक विभाग/Department of Posts
(जीडीएस अनुभाग/GDS Section)

डाक भवन, संसद मार्ग,
Dak Bhawan, Sansad Marg,
नई दिल्‍ली/New Delhi – 110 001
दिनांक/Date : 30-12-2025

OFFICE MEMORANDUM

Subject : Accumulation of paid leave without encashment facilities for Gramin Dak Sevaks (GDS) – reg.

A proposal for allowing accumulation of paid leave without encashment facilities was under consideration of the Department for quite some time. The Department had also sought suggestions/feed back of the Circles/stakeholders on the proposal.

2. After examination of the proposal and feed back of all the stakeholders, Rule-7, regarding paid Leave of the GDS, of GDS (Conduct and Engagement) Rules, 2020, has been amended as under:

• 7. Leave

The Gramin Dak Sevaks may be granted paid leave at the rate of 20 days in a year (10 days for every half year). Paid leave for 10 days will be credited to his account at the beginning of half year, starting 1st January or 1st July;

A GDS will be allowed to carry forward unavailed paid leave to the maximum extent of 45 days at any given time;

Paid leave shall be credited to the leave account of GDS at the rate of 1.67 days for each completed calendar month of engagement which a GDS is likely to render in a half-year of the calendar year of engagement/discharge/cessation of engagement;

While affording credit of paid leave, fractions of a day shall be rounded off to the nearest day. A fraction of 0.5 or above will be taken as one day of leave, while fraction of less than 0.5 will be ignored and Provided that –

• Where a Sevak fails to resume duty on the expiry of the maximum period leave admissible and granted to him/her, or
• Where such a Sevak who is granted leave for a period less than the maximum period admissible to a Sevak under these rules, remains absent from duty for any period which together with the leave granted exceeds the limit upto which a GDS shall, unless the Government, in view of the exception circumstances of the case, otherwise decides, be removed from engagement after following the procedure laid down in Rule 10.

3. The above change in the said Rule-7 of GDS (Conduct and Engagement) Rules, 2020, will effective from 01.01.2026.

4. Based on the feed back sought of the stakeholders, an FAQs is also provided in Annexure-I to this OM for the guidance of all concerned.

5. Hindi Version of this O.M will follow.

(Ravi Pahwa)
Director (GDS)

The post GDS: Accumulation of paid leave without encashment facilities for Gramin Dak Sevaks appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Gramin Dak Sevak (GDS) Compassionate Engagement Scheme 2023

1. Consolidated Guidelines Issued
   • All previous instructions and addendums on GDS compassionate appointments consolidated in one Office Memorandum (OM) for easy reference.
2. Original Scheme Reference
   • Based on Office Letter No. 17-1/2017-GDS dated 14.06.2023, which introduced the GDS Compassionate Engagement Scheme, 2023.
3. Amended Application Forms
   • Annexure-II & Annexure-VI of the scheme updated to include dependents of departmental employees.
4. Centralized Access for Rules
   • Complete guidelines and updates available at:
     https://utilities.cept.gov.in → Circulars, Rules and Latest Orders → GDS
5. Streamlined Process
   • Aim to simplify and ensure transparent, accessible, and uniform processing of compassionate engagement cases.
6. Official Source of Information
   • Each paragraph in the OM references the number and date of relevant office orders for authenticity and traceability.

GDS Compassionate Appointments Consolidate Guidelines: Department of Posts O.M. dated 20.06.2025

OM. No.17-01/2017-GDS
भारत सरकार /Government of India
संचार मंत्रालय /Ministry of Communication
डाका विभाग /Department of Posts
(जीडीएस अनुभाग) /GDS Section

डाक भवन, संसद मार्ग,
Dak Bhawan, Sansad Marg,
नई दिल्ली / New Delhi 110001
Dated: 20th June 2025

OFFICE MEMORANDUM

Subject: Consolidate Guidelines on Gramin Dak Sevaks (Compassionate Engagement) Scheme, 2023.

I am directed to refer to this office letter No. 17-1/2017-GDS dated 14.06.2023, vide which “Gramin Dak Sevak (Compassionate Engagement) Scheme,2023” was issued. Subsequently, several addendum/instructions on the Compassionate Appointments of Gramin Dak Sevak have been issued. It has been decided to consolidate all instructions issued till date, in this OM, for the facility of reference and guidance. The same are being made available on the Department’s website under https://utilities.cept.gov.in >> Circulars, Rules and Latest Orders>>GDS. The number and date of the relevant Office addendum have been mentioned below each para. The application form in Annexure-II & Annexure-VI has been amended for the use of the dependents of a department employee also.

2. Circles are requested to bring this to the notice of all concerned for information, guidance, and necessary action.

3. Hindi version will follow.

(Anand Singh)
Assistant Director (GD

The post Gramin Dak Sevaks Compassionate Engagement Scheme 2023: Consolidated Guidelines by Department of Posts appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

OM No.17-31/2016-GDS (Pt.)
Government of India
Ministry of Communications
Department of Posts
(GDS Section)

Dak Bhawan, Sansad Marg,
New Delhi-110 001
Dated: 20.01.2023

OFFICE MEMORANDUM

Subject: Risk and Hardship Allowance payable to GDS – reg.

This office is in receipt of several references from different Circles wherein the list of locations identified for Risk and Hardship Allowance payable to GDS as per this office OM No. 17-31/2016-GDS dated 25.06.2018 has been sought for.

2. In this context, the matter has been examined and the Competent Authority has decided that the locations identified for Tough Location Allowance notified by the Department of Expenditure vide their OM dated 19.07.2017 may be adopted for the purpose of Risk and Hardship allowances payable to GDSs.

3. This disposes of the clarifications sought by Himachal Pradesh and North East Circles vide their letter No. EA/2-44/2018 III dated 07.11.2022 and letter No Est/Misc/05-06 dated 23.11.2022 respectively.

This issues with the approval of the competent authority.

(Ravi Pahwa)
Assistant Director General (GDS/PCC)

The post DoP – Risk and Hardship Allowance payable to GDS appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

No. CBS-25 /2/2025-FS – DOP
Government of India

Central government jobs
Ministry of Communications
Department of Posts
(F.S. Division)

Dak Bhawan, New Delhi – 110001
Date: 07.05.2025

To
All Head of Circles / Regions

Subject: Introduction of facility to download Interest Certificate from DOP Internet Banking – Regarding.

Madam / Sir,

A Standard Operating Procedure for issue of Interest Certificate to the POSB Depositors by generating the Interest Certificate from Finacle CBS at Post Office level was issued vide SB Order No. 38/2021 dated 23.11.2021.

2. For the convenience of the Internet Banking customers, provisions have been made for E-Banking users for downloading the Interest Certificate through Internet Banking portal and the patch for the same has been deployed on 30.04.2025.

3. Henceforth, DOP Internet Banking customers can download the Interest Certificate for the Previous Financial Year and Current Financial Year from the Internet Banking portal, without visiting the post office.

4. For this purpose, Internet Banking user, after login in the portal, can download the Interest Certificate on clicking the Interest Certificate option provided under Accounts tab.

5. It is requested to circulate these instructions to all the post offices for information and guidance. Adequate promotion of this functionality is to be given for the benefit of POSB customers. The circles should also make an effort to propagate internet banking usage amongst its customers.

This is issued with the approval of Competent Authority.

Yours faithfully

Sd/-
(Gourav Jain)
Assistant Director General (FS-II)

The post Introduction of facility to download Interest Certificate from DOP Internet Banking appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

No. 20-01/2025-W1&Sp
Government of India

Central government jobs
Ministry of Communications
Department of Posts
(Welfare & Sports Section)

Dak Bhawan, Sansad Marg
New Delhi- 110001

Dated: 14.05.2025

To
All Heads of Postal Circles

Subject: Consolidated Guidelines and criteria for grant of 2 hours off/ concession to sportspersons and coaches for practice – reg.

Madam /Sir,

The undersigned is directed to refer to the Department’s letters No. 8-2/2011-WI&Sp dated 25.07.2011, 9-6/99-WI&Sp dated 30.08.1999, 8-4/98-WI&Sp dated 04.06.1998, 12-4/94-WI &Sp dated 18.02.1994, 12-1/92-WL/Sports dated 17/3/92, 12-1/90- WL/SPORTS dated 30/1/1990, 12-5/88-WL/Sports dated 31/5/1988. 9-6/78-Sports dated 26/3/1979 and No. 9-6/78/Sports dated 6.11.1978 and all other correspondence inter alia regarding the grant of two hours off to sports persons and coaches for practice while working in the Department of Posts.

2. This office has received multiple communications from various Circles and Staff Unions regarding the implementation of the said guidelines in letter and spirit, including clarifications regarding eligibility and the competent authority to grant the said facility.

3. The previous guidelines have been reviewed and, to address all the queries, consolidated guidelines on the above-mentioned subject, assimilating all the previous orders, are being circulated as per Annexure.

4. This has the approval of the competent authority Lawes

Sunita)
Director (Welfare and Sports)

Annexure

Consolidated guidelines on Two-Hours off to sports persons and coaches for practice

1. General Conditions:

1. All Departmental employees (sports quota or non-sports quota) are eligible for grant of this facility subject to fulfillment of the below mentioned criteria.
2. The facility is subject to administrative exigencies and cannot be claimed as a matter of right.
3. The Postal Sports Board and Circle Sports Board reserves the decision to grant/ review/ discontinue the facility at any point of time.

2. Mode of application

Officers/ officials wishing to avail this facility may submit an application with their performance certificates to their respective Circle Sports Boards. Circle Sports Board may specify formats or procedure for the same if deemed suitable.

3. Criteria for grant of the Facility:

1. Two hours off (i.e. two-hours lesser duty time from total number of duty hours per day) for practice may be granted to the players/coaches who are actively/regularly participating and performing in National/International Level tournaments aid are also participating in All India Postal Tournaments (if the same is conducted in that discipline).
2. In case AIP Tournament in a particular sport is not being’ organized, participation/performance in National/International Level tournaments alone shall be taken into consideration for granting/reviewing the facility.
3. For cases where a non-sports quota player (or sports quota player of a different sporting event) is participating only in AIP tournaments (i.e. not in National/International Event of that sports), the facility shall be granted in a restricted manner while keeping in view the seriousness and performance level of the player.
4. The Postal Sports Board may include or exclude any particular sporting event from eligible sporting events for the purpose of this facility.

4. Definition of Active Participation

Active participation for this purpose may vary from case to case, as it is observed that not all tournaments are conducted with the same frequency. To this effect, granting authority may ensure that the player is actually participating in maximum possible national/international sporting events and AIP tournaments (if conducted for that discipline), except if administrative exigencies doesn’t permit him/her (eg. Suppose an outstanding player is unable to take part in some of the tournaments due to administrative exigencies. In that case. he or she may still be granted the facility provided the granting authority is satisfied with the genuineness of the case).

5. Granting and monitoring of the facility

1. Two hours off for practice may be granted each year by Circle Sports Boards in the month of April, based on previous years participation/performance/attitude towards the sports of the concerned player/coach.
2. Facility once granted shall be applicable till the end of the financial year or till next review. whichever is earlier.
3. Once the facility is granted by the Circle Sports Board, the divisional head concerned may monitor proper utilization of the facility by the official/player.

6. Review of the facility

1. Review of the facility may be done periodically however, not less than once per year at the level of Circle Sports Boards.
2. In light of administrative exigencies. the Divisional Heads, may require a player/official to work for the full hours of duty for a limited period, even if he/she has been granted the said facility, under intimation to the Circle Sports Boards that had granted the facility.
3. The facility shall be discontinued if the player/coach is found misusing the facility (eg. not utilizing the time to practice and instead of whiling away the time). However, for players of International Level, the case may be referred by the Circle to the Postal Sports Board before discontinuing the facility.

7. Facility for participants/artists of the Cultural Meet

1. For participants/artists of All India Postal Cultural Meet, the aforesaid facility may be extended only for 1 month before the event.
2. The facility may be granted for participants/artists of the All India Civil, Music, Dance, and Short Play Competition (organized by the Central Civil Services Cultural & Sports Board) from the date of selection for participation until the end of the event.

The post Grant of two hours off to sports persons and coaches for practice – DoP appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

USEFUL LEAVE RULES FOR POSTMAN & MTS (INDIA POST)

Casual Leave (CL) – 8 days/year

• ✔ Full Pay
• ✘ No carry forward
• ✔ Can combine with RH/PH
• ✘ Not with EL/ML/CCL

Restricted Holiday (RH) – 2 days/year

• ✔ Optional religious leave
• ✔ Can combine with CL

Earned Leave (EL) – 30 days/year

• ✔ Full Pay
• ✔ Unlimited carry forward

Commuted Leave

• ✔ On medical grounds
• ✔ Full Pay (2 HPL = 1 CL)
• ✔ Medical certificate required

Leave Not Due (LND)

• ✔ If no HPL
• ✔ Half Pay up to 360 days in service
• ✔ Medical certificate & approval needed

Special Casual Leave (SCL)

• ✔ Blood donation, family planning, sports
• ✔ Full Pay

Maternity Leave – For women

• ✔ 180 days (childbirth)
• ✔ 45 days (miscarriage)
• ✔ Full Pay

Paternity Leave – For men

• ✔ 15 days (upto 2 children)
• ✔ Full Pay
• ✔ Within 6 months of birth

Child Care Leave (CCL) –

Women & single male parents

• ✔ 730 days (up to 18 yrs child)
  • ✔ 365 days full pay + 365 days 80% pay
• ✘ Not with CL/ML/RH

Extraordinary Leave (EOL)

• ✘ No Pay When no other leave
• ✔ Strong reason needed

Study Leave – For higher education

• ✔ Up to 2 yrs | Full/Half pay based on rules
• ✔ Needs approval

Leave Combination Tips:

• ✔ CL + RH + PH
• ✔ EL + Commuted
• ✔ CCL + CL/RH
• ✘ CL + ML/or
• ✘ ML + EL/PH
• ✘ CCL – CL/RH

Note:
Apply with proper documents in advance. Medical leave needs a certificate.
CCL needs child’s medical/school proof.
Keep a copy of leave balance. Take approval for combinations.

The post USEFUL LEAVE RULES FOR POSTMAN & MTS – INDIA POST appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

(FS Division)

Dak Bhawan,
Sansad Mar New Delhi-110001,
Dated: 01.06.2021.,

 Subject: Clarification regarding issuance of ATM cards to POSB customers

  With reference to the above mentioned subject, the undersigned would like to intimate that a number of queries have been received in this office regarding

 1. Issuance of ATM cards to illiterate depositors and the depositors who are old and are unable to sign properly as per the signature available in PO records.

 2. The queues have been examined at this end and it has been decided by the Competent Authority that if a request from POSA customer, who illiterate/ old and is unable to sign properly as per the signature available in PO records, is received. The ATM card may be issued to such customers on par with other customers after properly educating them.

 3. This is for your information and further circulation to all concerned. Any query in this regard may kindly be sought from this office.

Yours sincerely
(Bishan Singh)
Director (CBS)

Copy to: In Charge, National ATM Unit,  Bengaluru for information.

The post Clarification regarding issuance of ATM cards to POSB customers appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Due diligence in the application and verification process under Rule-38 Online Portal for Transfer: Department of Posts Order for sensitization of employees and verifying officers.

No. X-12/6/2021-SPN-II-DOP-Part(1)
Government of India
Ministry of Communications
Department of Posts

Dak Bhawan, Sansad Marg,
New Delhi – 110001,
Dated: 22-04-2025

To,
1. All Chief Postmasters General / All Postmaster General
2. Chief General Manager, PLI / Parcel / BD Directorate
3. Chief General Manager, CEPT / Director RAKNPA / Director of all PTCs
4. Addl. Director General, Army Postal Service
5. All General Manager (Finance) / Director Postal Accounts / DDAP

Subject: Sensitization of employees and verifying officers regarding due diligence in the application and verification process under Rule-38 Online Portal.

Madam/Sir,

It has come to notice that certain transfers approved through the Rule-38 online portal have later been cancelled due to errors made during the application and verification process. The recurrence of such lapses raises serious concerns about the integrity and reliability of the current verification mechanism. Whether inadvertent or otherwise, these errors cast doubt on the bona fide intent of the actions taken by the applying officials and verifying authorities and undermine the transparency of the entire transfer process.

2. It has also come to light that a few Divisions/Units are not thoroughly scrutinizing service records of applicants prior to recommending their cases for transfer which has resulted in the approval of ineligible applications and Subsequently sometimes requests for cancellation of such transfers are being received in this office. This required an urgent and thorough review of existing procedures to restore confidence and ensure accountability.

3. All Circles are, therefore, requested to sensitize all concerned officers/officials, including employees and verifying officers, about the critical importance of exercising due diligence during the application and verification process under Rule-38. It must be clearly communicated that any further lapses will be taken seriously, and responsibility for such errors shall be fixed accordingly.

Yours faithfully,
Digitally signed by
VANGARA PRASAD
Date: 22-04-2025
15:32:46
(Vangara Prasad)
Assistant Director General (SPN)

The post Verification process under Rule-38 Online Portal for Transfer and Due diligence in the application – DoP appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

File No.: 12-01/2022-PAP
Government of India
Ministry of Communications
Department of Posts
(P.A.P Section)

Dak Bhawan, Sansad Marg,
New Delhi – 110001
Date: 15.04.2025

To

The Chief Postmaster General.
Haryana Circle,
Ambala – 133 001.

Sub: Clarification regarding payment of Transport Allowance at double the normal rates to the persons with temporary disabilities – case of Shri Shamsher, SA, HRO Ambala reg.

Sir,

I am directed to refer to Haryana Circle’s letter No. Acctts/1-5/2023 dated 16.12.2024 regarding the subject cited above. In this regard, it is informed that the matter was referred to the Department of Expenditure (DoE) for clarification. The DoE has forwarded its Office Memorandum No. 21/1/2023-E.1I(B) dated 12.06.2023 addressed to Ministry of Defence for reference. A copy of the same is forwarded herewith for information and necessary action in similar cases.

Encl : As above.

Yours faithfully

(Sapna)
Assistant Director General (Estt.)

No.21/1/2023-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated: 12.06.2023

OFFICE MEMORANDUM

Subject: Grant of Transport Allowance at double the normal rates to person with disabilities employed in Central Government- regarding.

The undersigned is directed to refer to Ministry of Defences OM No.A-19018/27/2018-D (Estt.I/Gp.I) dated 07.03.2023 on the subject mentioned above and to say that payment of Transport Allowance at double the normal rates can be considered in the present referred case upto the expiration of the disability certificate subject to the fulfillment of other stipulated conditions as enumerated in this Department’s OM dated 15.09.2022. Thereafter, renewal/re-validation of disability certificate will be required to continue the drawal of Transport Allowance at double the normal rates.

2 This issues with the approval of Competent Authority.

(Dr. Vivek Dwivedi)
Under Secretary to the Government of India
Tel: 011-23095646

To
Ministry of Defence
{Shri Sunil Kumar Adlakha, Under Secretary}
Room No. 319A, ‘B’ Wing.
Sena Bhawan, New Delhi

The post Clarification regarding payment of Transport Allowance at double the normal rates to the persons with temporary disabilities – case of Shri Shamsher, SA, HRO Ambala appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

The Public Provident Fund (PPF) is a favoured savings instrument for many Indians,
thanks to its tax benefits and secure nature. However, when it comes to Non-Resident Indians (NRIs) and PPF, there’s a cloud of misconceptions that often leads to confusion. Let’s debunk some of these myths:

• Misconception: Many believe that NRIs are not allowed to open new PPF
  accounts.
• Reality: NRIs cannot open a new PPF account. However, if they had a PPF
  account before becoming an NRI, they could continue to maintain it until maturity.

1. PPF Accounts of NRIs Get Closed Automatically:

• Misconception: Once an individual becomes an NRI, their PPF account is
  automatically closed.
• Reality: The PPF account does not close automatically. It remains operational
  until maturity but operates with certain restrictions.

1. NRIs Can Continue to Invest in Existing PPF Accounts:

• Misconception: NRIs can keep investing in their existing PPF accounts without
  any issues.
• Reality: While the account remains active, NRIs cannot make fresh contributions
  to their PPF account once they attain NRI status.

1. PPF Withdrawals are Taxable for NRIs:

• Misconception: The amount withdrawn from PPF by NRIs is taxable.
• Reality: PPF withdrawals remain tax-free in India, irrespective of one’s residential
  status. However, NRIs should check the tax implications in their country of
  residence.

1. NRIs Can Extend Their PPF Account Beyond Maturity:

• Misconception: Like resident Indians, NRIs can also extend their PPF accounts
  beyond the 15-year maturity period.
• Reality: NRIs cannot extend their PPF accounts. Once the account matures, they
  must withdraw the entire amount.

PPF Interest Rates are Different for NRIs:

Misconception: NRIs receive a different (often believed to be lower) interest rate on their PPF accounts.

Reality: The interest rate for PPF is the same for both residents and NRIs. It’s set by the Indian government and is subject to periodic revisions.

Frequently Asked Questions (FAQs) about PPF for NRIs

Q1. Can NRIs open a new PPF account in India?
No, NRIs cannot open a new PPF account. However, if they had one before becoming an NRI, they can continue to maintain it.

Q2. What happens to my existing PPF account if I become an NRI?
You can continue to maintain your existing PPF account until its maturity. However, you cannot extend it beyond the maturity period.

Q3. Are the PPF returns for NRIs taxable in their country of residence?
Tax implications vary by country. It’s advisable to consult a local tax expert regarding the tax treatment of PPF returns in your country of residence.

Q4. Can NRIs withdraw from their PPF account?
Yes, NRIs can make withdrawals, subject to the standard PPF withdrawal rules.

Q5. Is the interest earned on PPF accounts tax-free for NRIs in India?
Yes, the interest earned is tax-free in India, but it’s essential to check the tax implications in the NRI’s country of residence.

Q6. Can NRIs deposit in their PPF account from their NRE or NRO account?
Yes, NRIs can deposit in their PPF account from their NRO account. However, deposits from NRE accounts are not allowed.

Q7. What is the current interest rate on PPF for NRIs?
The interest rate for NRIs is the same as for resident Indians and is revised quarterly.

Q8. Can NRIs extend their PPF account after maturity?

No, NRIs cannot extend their PPF account after maturity, even if it was opened before they attained NRI status.

Q9. Is there a penalty for not depositing the minimum amount in the PPF account?
Yes, a nominal penalty is charged if you don’t deposit the minimum required amount
in a financial year.

Q10. Can NRIs take a loan against their PPF account?
Yes, NRIs can avail loans against their PPF account, subject to the standard PPF
loan provisions.

Q11. How is the interest on PPF calculated for NRIs?
The interest calculation for NRIs is the same as for resident Indians, calculated monthly and credited annually.

Q12. Can I transfer my PPF account to another branch or bank?
Yes, PPF accounts can be transferred between branches or banks.

Q13. Do NRIs need to change the status of their PPF account after becoming an NRI?
No, there’s no need to change the account status. However, certain features and
benefits might be restricted.

Q14. Is a nomination facility available for NRI’s PPF account?
Yes, NRIs can nominate beneficiaries for their PPF account.

Q15. What happens to the PPF account if the account holder passes away?
The balance in the PPF account is paid to the nominee or the legal heir.

Q16. Can two NRIs jointly open a PPF account?
No, joint accounts are not allowed in PPF, whether for residents or NRIs.

Q17. Is the maturity amount from PPF repatriable for NRIs?
The maturity amount can be credited to the NRO account of the NRI, from which
repatriation is subject to certain conditions.

Q18. Can I change the nomination for my PPF account after becoming an NRI?

Yes, you can change the nomination for your PPF account anytime.

Q19. Are there any restrictions on deposit amounts for NRI PPF accounts?

The deposit limits for NRIs are the same as for resident Indians, with a minimum of INR 500 and a maximum of INR 1.5 lakhs in a financial year.

Q20. Can I convert my regular PPF account to an NRI PPF account?

There’s no separate NRI PPF account. If you had a PPF account before becoming an NRI, you could continue it till maturity but with certain restrictions.Rules Governing PPF Accounts for NRIs

The Public Provident Fund (PPF) has long been a popular savings instrument in India, offering attractive interest rates and tax benefits. However, for Non-Resident Indians (NRIs), the rules surrounding PPF accounts have undergone changes, making it essential to be updated. Here’s a comprehensive look at the regulations governing PPF accounts for NRIs:

Account Opening: NRIs ARE not allowed to open A new PPF account. However, if an individual had opened a PPF account while they were a resident of India and later changed their status to NRI, the account could be continued until its maturity.

Account Tenure: The standard PPF account has a tenure of 15 years. For NRIs who had opened their PPF account before becoming an NRI, they can’t extend the account beyond this tenure. Once matured, the funds remain locked and earn interest, but additional contributions aren’t allowed.

Interest Rate: The interest rate for NRIs on PPF accounts is the same as that for resident Indians. It’s set quarterly by the Government of India. However, it’s worth noting that once a person’s status changes to NRI, the interest earned becomes taxable in many foreign countries, depending on the Double Taxation Avoidance Agreement (DTAA).

For example, Raj, who moved to Australia, might have to pay tax in Australia on the interest he earns from his PPF account in India, based on the DTAA between India and Australia.

Contribution Limits: The annual contribution limit for PPF accounts is INR 1.5 lakhs. This limit applies to both residents and NRIs. However, NRIs can’t operate the account or make contributions if the account has matured after 15 years.

Repatriation: The principal amount and interest in the PPF account are fully repatriable for NRIs. However, the process might require additional documentation to prove the change in residency status.

The post Common Misconceptions about NRI PPF Accounts appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.