Public Provident Fund (PPF) is one of the most famous investment plans in India as it is backed by the government, so there is guaranteed returns for all the investors who want to invest in it.
But before investing in PPF, it’s important to know who can open PPF account.
The eligibility criteria for PPF account has been released by the government of India which specifies different eligibility conditions for Indian citizens, minors and NRIs as mentioned below.
PPF Account Eligibility Criteria for Indian Citizens
All the Indian Citizens have the option to open PPF account in a Bank. But for that, there are some eligibility conditions which the investor must fulfil to successfully open their PPF account.
- The investor should be a residing Indian citizen in order to be eligible to open a PPF account.
- The investor should be of at least 18 years of age in order to operate their PPF account. However, there is no upper age limit for Indian citizens, so senior citizens can also open their individual PPF account.
- Even after fulfilling the eligibility criteria, each investor can open only one PPF account, they cannot open a second one till the first one is fully terminated. Know more about How many PPF account can be opened.
PPF Account Eligibility Criteria for Minors
Government has also provided the investors the option to open a PPF account for minors, who are below the age of 18 years. However, there are some conditions regarding this, as mentioned below:
- Till the minor turns 18, the parent or guardian of the minor will be operating his/her PPF account.
- The person who is operating a minor’s account should be a legal parent or guardian of the child.
- Grandparents cannot open a PPF account on behalf of their grandchildren unless the minor’s parents are not alive.
- Registration of a nominee is mandatory at the time of opening the account.
- At the time of opening, full KYC documents of the parent will have to be submitted along with documents of the minor.
PPF Account Eligibility Criteria for NRIs and HUFs
As per the Finance Ministry of India, NRIs and HUFs are not allowed to open a PPF account. However, there are certain exceptions to it as written below:
- If the Indian resident has become NRI after opening a PPF account, then he/she can continue to operate his/her PPF account till the maturity period.
- Though after completion of maturity, they will not be allowed to extend the maturity period as other Indian residents can do.