In a bid to simplify processes for small investors, Finance Minister Nirmala Sitharaman announced on Thursday that Public Provident Fund (PPF) account holders will no longer face fees for updating or adding nominees. This change has been formalised through a Gazette notification dated April 2, 2025.
Previously, some financial institutions charged fees for modifying nominee details in PPF accounts, raising concerns among account holders. Sitharaman shared the update on the social media platform X (formerly Twitter), highlighting that the revised fee structure aims to provide greater ease and convenience to PPF account holders.
“The Government Savings Promotion General Rules 2018 have been amended through a Gazette Notification dated April 2, 2025, to eliminate any charges for nominee updation in PPF accounts,” the Finance Minister Sitharaman wrote in her post.
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/Hi33SbLN4E
— Nirmala Sitharaman (@nsitharaman) April 3, 2025
The Gazette notification has eliminated the Rs 50 fee previously charged for cancelling or changing nominations in government-run small savings schemes.
“The Banking Amendment Bill 2025, passed recently, allows nomination up to 4 persons for payment of depositors’ money, articles kept in safe custody and safety lockers,” she added.
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Banking Amendment Bill 2025
This announcement follows the enactment of the Banking Amendment Bill 2025, which introduces key reforms in banking regulations. Finance Minister noted that the new law allows for the nomination of up to four individuals for the management of depositors’ funds, items in safe custody, and assets in safety lockers, enhancing flexibility and facilitating smoother transitions during unforeseen events.
A key amendment in the bill is the redefinition of “substantial interest” in a bank, with the threshold raised from Rs 5 lakh to Rs 2 crore. This change aims to modernize banking regulations that have remained unchanged for nearly 60 years.
Additionally, the bill proposes extending the tenure of directors (excluding the chairman and whole-time directors) in cooperative banks from 8 years to a maximum of 10 years. This adjustment aligns with the Constitution (Ninety-Seventh Amendment) Act, 2011, which aims to enhance stability within cooperative banking institutions.
