Public Provident Fund holders will now be able to make changes in their nominee details without payment, Finance Minister Nirmala Sitharaman said in a post on X.
The finance minister added that the necessary changes have been made in the Government Savings Promotion General Rules 2018. "Recently was informed that a fee was being levied by financial institutions for updating/modifying nominee details in PPF accounts. Necessary changes are now made in the Government Savings Promotion General Rules 2018 via Gazette Notification 02/4/25 to remove any charges on the updating of nominees for PPF accounts," Sitharaman said on Thursday.
Nomination of up to four people for the payment of depositors' money, articles kept in safe custody and safety lockers is allowed, she added.
Recently was informed that a fee was being levied by financial institutions for updating/modifying nominee details in PPF accounts.
Necessary changes are now made in the Government Savings Promotion General Rules 2018 via Gazette Notification 02/4/25 to remove any charges on… pic.twitter.com/Hi33SbLN4EAccording to the notification, the changes will come into effect on the day of publication in official gazette. The new changes were passed by the Parliament with the Rajya Sabha approving it through a voice vote. The Amendment had already passed this bill in December 2024.
This comes after AAP MP Raghav Chadha listed out the ways in which customers are charged for basic services, making banking fees and charges a topic for debate in the Parliament.
The minister also pointed out that banks accumulate thousands of crores through such hidden costs that also include SMS alerts, NEFT transactions, changing nominee details and also issuing bank statements. He further pointed out that banks also charge for minimum balance penalty, inactivity fee and loan foreclosure, adding to customers' frustration.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
