How to withdraw PPF account for NRI

As we covered in our previous blog that NRI's can't make fresh investments in PPF and an NRI can withdraw PPF through below mentioned process:

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Find the PPF withdrawal request form from your bank’s website. If you can’t find it, then just type a simple letter mentioning that you want to withdraw the entire amount from your PPF account addressed to the bank where you hold the PPF account in. Mention the following details: PPF account number, date of initial subscription, and the account number and IFSC of the bank account where you want the proceeds to go. The details should be of your NRO account.

Courier the signed PPF withdrawal request to your relatives, parents, or siblings in the city where you have the NRE / NRO account. Provide an authority letter mentioning that you are allowing the person to follow the withdrawal process on your behalf. Also send your identity/address details and statements of your NRO account and PPF account.

The person on your behalf has to go to the bank where you have the NRE/NRO account. They have to attest these documents. After attestation is done, then the person has to visit the PSU bank for PPF withdrawal. The bank will accept the documents which are attested by your bank

Disclaimer: Above facts / data is not the view of blogger, it is based on the study / actual discussion with concerned persons.

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NRI / Canadian PR cannot make fresh deposits in India

Do you know non resident Indians (NRI's) and Canadian PR holders are not allowed to make fresh deposits in PPF accounts in India?

Yes, but it's true. RBI rules says that NRIs must convert all their resident savings and deposit accounts to non-resident accounts upon their departure from India

If you are planning to move to Canada or any other country where you are going to settle than take note regarding your money / investments. 

• As per RBI regulations NRIs before leaving for their new country of residence must convert all their resident savings and deposit accounts to non-resident accounts if they plan to settle abroad. 

• NRIs cannot make fresh deposits to their PPF accounts however, they can continue to hold their pre-existing PPF accounts, which were opened while they were resident, until maturity period, which is 15 years.  Accretions to PPF accounts are not taxable in India, however, once you become a tax resident of Canada (or country where you settled), you will have to check your local laws to find out how these incomes will be taxed in your country or not.

• You may continue to hold your mutual funds too but can't make fresh investments without knowledge of SEBI.

Disclaimer: Above facts / data is not the view of blogger, it is based on the study / actual discussion with concerned persons.

Please click on link to see our other blogs on Canada and if you are interested to move to Canada please contact us