I am an Overseas Citizen of India and also a Canadian Citizen. I had a PPF account in India which I opened before leaving India and I am still continuing to contribute. It is expiring and I want to extend it for next five years or so. Is it legal to continue such account.Raman,Toronto, Canada
NRIs are prohibited from opening a PPF account or investing in any of the Post office schemes as well as the RBI savings Bonds. Circular GSR 585(E) dt. 25.7.03 prohibits NRIs from opening a PPF account.
The wording in Public Provident Fund 1968 which is amended time to time, is as under with respect to issue of subscription by Non Resident
Non Resident Indians are not eligible to open an account under the
Public Provident Fund Scheme:-
Provided that if a resident who subsequently becomes Non Resident Indian
during the currency of the maturity period prescribed under Public Provident
Fund Scheme, may continue to subscribe to the Fund till its maturity on a Non
Repatriation Basis.
[MOF (DEA) Notification No GSR 585 (E) dated 25.7.2003]
Therefore, it is in my opinion you are not eligible for extrentding it to another five years. But then you can also make a case that since law provides you to continue with PPF , you can extend the PPF for another five years.
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