PPF for NRI: 2026 Rules to Continue, Extend or Close

Close-up of an Indian rupee note, representing savings held in PPF for NRI investors

Opened a Public Provident Fund (PPF) account in India and then moved to Dubai, London, Toronto, Sydney or New York? You are not alone, and the rules on PPF for NRI account holders are some of the most misunderstood in Indian personal finance. Some people close a perfectly good account in panic; others quietly extend it after 15 years and later find it has earned nothing.

This guide explains, in plain English, what a Non-Resident Indian (NRI) can and cannot do with a PPF account in 2026: continuing deposits, the 15-year maturity, why extension is off the table, early closure, the current interest rate and how your new country may tax the interest. Everything is checked against the PPF Scheme 2019, Ministry of Finance orders and official tax pages opened on 8 November 2026.

Please note: this article is general information, not professional financial, tax or investment advice. Rules change, so check the official sources linked below or speak to a qualified professional before you decide. Read our disclaimer.

PPF for NRI: the short answer

The PPF Scheme 2019 lets an individual open one account using Form-1, and the forms ask you to declare that you are a resident citizen of India and to tell the post office or bank if that changes. So the starting position is simple:

  • New accounts: an NRI cannot open a fresh PPF account.
  • Existing accounts: if you opened the account while resident and later became an NRI, you can generally keep it running until it matures 15 years after the end of the financial year in which it was opened.
  • Extension: the extension request also needs a resident-citizen declaration, so an NRI should not extend the account in five-year blocks.

Not sure whether you are an NRI for tax purposes? Start with our guide to NRI tax residency rules, because your status under Indian tax law and under the PPF forms are both based on where you actually live.

Why the rules on PPF for NRI changed twice

In October 2017 the government amended the old PPF Scheme 1968 so that an account would be deemed closed on the day the holder became a non-resident. On 23 February 2018 the Ministry of Finance (Department of Economic Affairs) issued an Office Memorandum keeping that amendment in abeyance "till further order". In practice, existing accounts were allowed to continue.

The new PPF Scheme 2019 then replaced the 1968 scheme. It added a specific ground for premature closure on change in residency status, which only makes sense if an account can continue after you move abroad.

The second change came in 2024. Under the Ministry of Finance guidelines dated 12 July 2024 on irregular small savings accounts, active PPF accounts of Indian citizens who became NRIs during the account and then extended it under the 1968 scheme (where Form H did not ask about residency) earned the Post Office Savings Account rate only until 30 September 2024, and zero per cent after that.

Can an NRI continue a PPF account and keep depositing?

Yes, until maturity. A PPF for NRI account follows the same deposit rules as any other: under the PPF Scheme 2019, you can deposit between ₹500 and ₹1,50,000 in a financial year, in multiples of ₹50. An account with less than the ₹500 minimum in a year is treated as discontinued and can be revived with a ₹50 fee per year plus the missed minimum deposits.

Practical points if you hold PPF for NRI purposes:

  • Tell your bank or post office. The account forms ask you to report any change in residency status.
  • Pay from a rupee account. Most NRIs fund the deposit from an NRO or NRE account. See NRE vs NRO accounts to choose the right one.
  • Loans and partial withdrawals follow the same scheme rules as for residents: a loan is possible from the year after opening, and one withdrawal a year is allowed later in the term.

Infographic summarising PPF for NRI rules: continue, deposit, no extension, early closure and the 7.1% rate

PPF interest rate for NRI account holders in 2026

The government reviews small savings rates every quarter. According to the Department of Posts circular based on the Ministry of Finance memorandum of 30 September 2026, rates for 1 October to 31 December 2026 stayed unchanged, with PPF at 7.1% a year, compounded annually. A regular PPF for NRI account that has not been irregularly extended earns the same scheme rate as a resident's account.

SituationInterest (Oct-Dec 2026)
Account opened while resident, still within the original 15 yearsScheme rate: 7.1%
Extended by an NRI under the old 1968 Form HPOSA rate (4%) until 30 Sep 2024, then 0%
Closed early on change of residency (after 5 years)Rate credited over the years, minus 1 percentage point

Rates on PPF for NRI holders can change every quarter, so check the latest notification on the Department of Economic Affairs small savings page before you plan a deposit.

What happens to PPF for NRI accounts at maturity

At the end of 15 financial years, a resident has three choices: close the account, keep it without new deposits, or extend it with deposits for five years at a time. For an NRI the safe choice is usually to close the account and take the money, because the extension form requires a resident-citizen declaration and the 2024 guidelines show the cost of getting this wrong.

The maturity proceeds go to your bank account in India. Moving the money abroad from an NRO account is subject to the usual repatriation rules and paperwork; ask your bank what it needs before maturity.

Can I close PPF early after moving abroad?

Yes. Paragraph 13 of the PPF Scheme 2019 allows premature closure "on change in residency status", with a copy of your passport and visa or an income tax return. Two conditions apply: the account must have completed five years from the end of the year it was opened, and interest is recalculated at one percentage point lower than the rate credited since opening.

Is PPF for NRI interest tax-free?

India treats interest on PPF for NRI and resident holders alike as exempt income, and deposits can qualify for the section 80C deduction under the old tax regime. But your country of residence may see it differently:

  • United Kingdom: GOV.UK says UK residents may need to pay UK Income Tax on foreign income, including savings interest.
  • United States: US persons must file an FBAR if their foreign financial accounts together exceeded USD 10,000 at any time in the year, according to the IRS, and are generally taxed on worldwide income.
  • Canada and Australia: residents report worldwide income, so check how your tax authority treats PPF interest that accrues each year.
  • UAE and other Gulf states: there is generally no personal income tax on this interest locally, but confirm whether India or another country still treats you as tax resident.

Read our guide to DTAA for NRIs to see how treaties prevent the same income being taxed twice.

A simple plan for PPF for NRI account holders

  1. Find your opening date. Work out the financial year your PPF for NRI planning starts from: the year of opening and the maturity year.
  2. Update your status with the bank or post office and keep proof (passport, visa or residence permit).
  3. Decide on deposits. If the account has years left and the 7.1% rate suits your goals, keep paying at least ₹500 a year so it stays regular.
  4. Do not extend at maturity while you are an NRI; plan to close it instead.
  5. Choose your next step for long-term savings, such as the options in our plan to invest a Gulf salary or mutual funds for NRIs.

If a family member in India handles your paperwork, our sister blog explains how to make a power of attorney for NRIs valid.

Sources

This guide was checked against these official and reputable sources on 8 November 2026:

Photo: Indian 50-rupees banknote closeup (68912) by Sohel Patel, CC0, via Wikimedia Commons (cropped).

FAQ: ppf for nri

Can an NRI open a new PPF account?

No. The PPF Scheme 2019 forms require the applicant to declare that they are a resident citizen of India, so an NRI cannot open a fresh account.

Can NRI continue PPF account after moving abroad?

Yes. If you opened the account while resident, you can continue it and keep depositing ₹500 to ₹1.5 lakh a year until it matures after 15 financial years.

Can an NRI extend a PPF account after 15 years?

No. The extension request needs a resident-citizen declaration. Under the 2024 Ministry of Finance guidelines, NRI accounts extended under the old Form H earned 0% interest from 1 October 2024.

Can I close my PPF early because I moved abroad?

Yes, after five years from the end of the year of opening. The PPF Scheme 2019 allows closure on change in residency status, but interest is recalculated 1 percentage point lower.

Is PPF interest tax-free for NRIs?

It is exempt in India, but your country of residence may tax it. UK residents may owe tax on foreign savings interest and US persons may also need to file an FBAR.

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About the author: Sumit Manwal

Sumit Manwal is the founder of Hospitality Vacancy, the job site built for the hotel industry. He is passionate about helping hotel management students and hospitality professionals build successful careers, and connects talented people with hotel jobs across India, the Gulf and Europe. On Expat Money Desk he writes clear, practical money guides for Indians and other expats living in the US, UK, Canada, Australia and the Gulf, so every reader can make confident decisions about their work and life. He is not a financial, tax or investment professional, so every guide here links to official sources and he encourages readers to confirm details with a qualified expert before acting.

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