Government of India has notified that if any person is turned into NRI(Non-Resident India). In that case his/her PPF account under PPF scheme would be immediately closed. This closer of PPF account would be applicable on the day the account holder turned into NRI (Non-Resident Indian).
Moving in this direction Government of India has also notified that if the person has invested into small savings scheme like National saving Certificate (NSC).Then the account under National saving Certificate (NSC) would also be closed. This closer of NSE account would be applicable on the day on which the person is turned into NRI (Non-Resident Indian).
PPF account would be closed if account holder turned into NRI:
Under the amendment to the PPF scheme,1968” If a person is resident of India and he has invested in PPF scheme, but to any reason the person get converted into Non-Resident India (NRI). Then the person PPF account would be immediately closed.
The interest to the PPF account would be payable to the date till he/she is resident of India.
NSC certificate would be closed if account holder turned into NRI:
A separate notification on NSCs said that 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.
NRI cannot do investment in Small saving Scheme:
After this amendment NRI are not allowed to do investment in small saving scheme like Public Provident Fund (PPF), National Saving Certificate, Monthly Income schemes and other time deposits schemes offered by Post Offices.
PPF interest rate:
Regarding the ppf interest rate government of India has retained the old interest rate i.e 7.8 percent for the quarter of October to December, 2017. On last April the interest rate of all small saving scheme have been recalibrated regularly after every quarter.