New Delhi: Finance Minister Nirmala Sitharaman announced that no fee will be charged for updating or adding nominees in Public Provident Fund (PPF) accounts. This change follows a government notification to amend the Government Savings Promotion General Rules, 2018.
Previously, financial institutions levied a Rs 50 fee for modifying nominee details. The new rule, effective from April 2, 2025, removes this charge, ensuring hassle-free updates for PPF account holders.
Key Amendments in the Banking Amendment Bill 2025
Additionally, the Banking Amendment Bill 2025 introduces significant reforms:
Nomination Flexibility: Allows up to four nominees for payments related to depositors' money, safe custody articles, and safety lockers.
Redefinition of ‘Substantial Interest’: Raises the threshold from Rs 5 lakh to Rs 2 crore, a change reflecting current economic realities.
Directors’ Tenure in Cooperative Banks: Extends the tenure of directors (excluding the chairman and whole-time directors) from eight to ten years, aligning with the Constitution’s 97th Amendment.
These changes aim to streamline banking operations, enhance transparency, and improve the convenience of financial services for the public.
