No fee will now be charged for updating or adding the name of a nominee in Public Provident Fund (PPF) accounts. The government has made the necessary changes by issuing a notification. Finance Minister Nirmala Sitharaman shared this information on the social media platform X.
According to the Finance Minister, some financial institutions were charging fees for updating or modifying nominee details in PPF accounts. She said that the government has made changes to the Government Savings Promotion General Rules, 2018 through a gazette notification issued on April 2, 2025. These changes ensure that no fee will be charged for updating nominee details in PPF accounts.
Abolition of Nominee Update Fee
According to the gazette notification, the fee of ₹50 charged for cancelling or changing the nominee in government-run small savings schemes has now been removed. The recently passed Banking Amendment Bill 2025 also allows up to four people to be nominated for a depositor’s funds, locker contents, and safety lockers.
Change in ‘Substantial Interest’ Definition
Another change in the bill is about redefining the term ‘substantial interest’ of a person in a bank. The limit is proposed to be increased from the current ₹5 lakh to ₹2 crore. The ₹5 lakh limit was set nearly sixty years ago.
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
Increased Tenure for Cooperative Bank Directors
The new law also proposes increasing the tenure of directors (except the chairman and whole-time director) in cooperative banks from 8 years to 10 years. This change is to bring the rule in line with the Constitution (97th Amendment) Act, 2011.