Neutral impactEconomy
Planning to name an NRI as nominee for PPF, NSC or SCSS? Know the rules before making the nomination
Mint 1 hr ago·9 Sept 2026, 6:14 am
Non-Resident Indians (NRIs) can nominate a family member for their Public Provident Fund (PPF), National Savings Certificate (NSC), or Senior Citizen Savings Scheme (SCSS). However, a key restriction applies: the nominee can only receive the funds within India. The money cannot be repatriated abroad. This rule is crucial for NRIs who want to ensure their savings are transferred smoothly to a loved one in India after their passing.
This matters because the nominee’s rights are distinct from legal ownership. The nominee is entitled to receive the funds, but the legal title remains with the estate. If the nominee is not the legal heir, the funds will eventually pass to the rightful heirs as per succession laws. This process can be complex and time-consuming, so it is important to understand the difference between being a nominee and a legal heir.
Investors should review their nomination forms carefully. If the nominee is an NRI, they must be aware that the funds will be locked within India. For those who wish to pass on the benefits of these schemes, it is advisable to consult a financial advisor to ensure the process aligns with their overall estate planning and tax obligations.
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- Category: Economy.
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