Yes, this is true. The rule of 25th July, 2003 states that ‘Non Resident Indians are not eligible to open an account under the PPF Scheme’. But there is a silver lining for some NRIs. If you already had a PPF account, when you were resident in India, and during the tenure of the PPF account you became an NRI, then you are eligible to continue investing in the account until it matures, but on a non repatriable basis.
The rule states is as follows: ‘Provided that if a resident who subsequently becomes a Non Resident during the currency of the maturity period prescribed under the PPF scheme, may continue to subscribe to the Fund till its maturity, on a Non Repatriation Basis.’
So if you open it as an RI, and during the 15 year tenure become an NRI, you can continue to invest, but on a non-repatriable basis.
Can a person of Indian Origin (PIO ) continue to subscribe to a Public Provident Fund Account like a Non resident Indian after leaving India? If not, how will he get back the money already deposited?
For a better answer of this question you will ask to your (SBI or IDBI or ICICI) Bank.
I have a query. A person ,citizen of foreign country but having a P. I.O. status serving in India opens a PPF a/c and subsequently leaves India and settles abroad . Will he be eligible to contribute to PPF like a NRI and receive payment on maturity on a non-repatrable basis?
If not what happens to the contributions he might have made before leaving India ?
For a better answer of this question you will ask to your (SBI or IDBI or ICICI) Bank.