Can NRI Invest in PPF?
Yes, Non-Resident Indians (NRIs) can now invest in Public Provident Fund (PPF). This is a government-backed savings scheme that offers attractive interest rates and tax benefits. PPF is a long-term investment option with a lock-in period of 15 years. However, NRIs are allowed to make partial withdrawals after 7 years.
Documents Required for PPF Account Opening by NRI:
- Copy of passport with stamp of Overseas Citizen of India (OCI) card/Person of Indian Origin (PIO) card
- Proof of NRE/NRO account in the same bank or any other nationalized bank in India
- Proof of PAN card
- Recent passport-sized photograph
- Address proof of the place of stay in India at the time of account opening
- PAN Card
- NRE or NRO account details
Key Points to Note:
- NRIs can invest in PPF only through NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts.
- The maximum investment limit for NRIs in PPF is INR 1.5 lakhs per financial year.
- NRIs can make contributions to their PPF account through online banking or by sending a demand draft.
- The interest earned on PPF is tax-free in India.
- NRIs can withdraw their PPF funds after a lock-in period of 15 years.
- NRIs can also avail of a loan against their PPF account after a lock-in period of 3 years.
Benefits of Investing in PPF for NRIs:
- PPF offers attractive interest rates, currently at 7.1%.
- The interest earned on PPF is tax-free in India.
- PPF is a long-term investment option with a lock-in period of 15 years.
- NRIs can make contributions to their PPF account through online banking or by sending a demand draft.
NRIs can invest in PPF through two methods:
- Open a new PPF account in their name.
- Transfer their existing PPF account to India.
Overall, PPF is a good investment option for NRIs who are looking for a long-term savings plan with attractive interest rates and tax benefits.
