PPF, SSY, mutual fund SIP: You must know these rules if you are moving abroad permanently (2024)

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New Delhi: Small savings plans like Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) offer some unique benefits to the accountholders. But most of these benefits are for resident Indians. Worth mentioning here is non-resident Indians (NRIs) can not invest in PPF and SSY schemes. So, if you are currently investing in PPF or SSY scheme and in the near term you are planning to relocate to a foreign location permanently then you should be aware of the rules pertaining to these accounts. Even for SIPs in mutual fund schemes, rules change once you become an NRI.

Public Provident Fund (PPF)

According to the latest rules, if the accountholder's residential status changes to NRI, then the ongoing account is allowed to be run till maturity. So the person can continue to contribute to his existing PPF account till the completion of 15 years. But extension of PPF account after maturity is not allowed once you become an NRI.

It may be noted that resident Indians can extend their PPF accounts by a block of five years for unlimited times after completion of 15 years. Also, no new PPF accounts can be opened once a person's residential status changes to NRI.

Sukanya Samriddhi Yojana (SSY)

NRIs are not allowed to open a SSY account. A girl child is eligible for an SSY account only if she is a resident Indian at the time of opening the account. She will continue to enjoy the benefits of SSY account until she continues to be a resident Indian.

But if the girl chield's residential status changes to NRI, during the term of the scheme, no interest shall be paid from the date of change of residential status and the account will be considered closed.

Mutual fund SIP

Whether you can continue with your existing mutual fund SIP after change of your residential status to NRI, will depend on the particular mutual fund. Some mutual funds may ask you to discontinue your SIP, in case you move to non-FATF compliant countries like the US, Canada. So, it is advisable you check with the respective funds, whether you can continue with your current SIP.