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PPF Scheme 1968 Amendments: Payment Methods & Nomination Rules

No longer current — replaced by Public Provident Fund Scheme, 2019

Source: Reserve Bank of India · RBI/2004-05/296 · issued 09 Dec 2004 · ~1 min read

Quick answerRBI notifies two PPF Scheme amendments effective Nov 19, 2004: subscriptions can be made via cash, crossed cheque, draft, or pay order; trusts cannot be nominated as nominees. Banks must update branches and inform account holders.

What changed

The Government of India amended the Public Provident Fund Scheme, 1968 via Notification G.S.R.755(E) dated November 19, 2004. First, paragraph 4(4) was replaced to allow subscriptions in cash, crossed cheque, draft, or pay order. Second, a new sub-paragraph 12(7) was inserted stating that a subscriber cannot nominate a trust as a nominee.

What it means for you

Banks must update their PPF account opening and transaction procedures to accept the specified payment instruments and ensure nomination forms exclude trusts. This clarifies payment flexibility while tightening nominee eligibility, reducing potential disputes. Banks should train staff and update system validations accordingly.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Issue instructions to all designated PPF branches to implement the amended payment methods (cash, crossed cheque, draft, pay order).
Update nomination forms and system checks to prevent trusts from being nominated as PPF nominees.
Display the amendments on notice boards at all authorized branches and inform existing PPF account holders.
Acknowledge receipt of this circular to RBI as instructed.

Who it affects

State Bank of India and associate banks, 14 nationalised banks, Corporation Bank, All designated PPF branches and offices, PPF account holders

❓ Common questions

Regulatory timeline

Stated effective date effective Nov 19, 2004
Decoded by BankPulse 2026-06-19 21:36 IST
Superseded by — Public Provident Fund Scheme, 2019
Status change: superseded 08 Jul 2026, 13:15 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Can I now pay my PPF subscription via a pay order?

Yes, the amendment to paragraph 4(4) allows subscriptions via cash, crossed cheque, draft, or pay order, effective November 19, 2004.

Can I nominate a trust for my PPF account?

No, the new sub-paragraph 12(7) explicitly prohibits nominating a trust as a nominee for a PPF account.

When did these PPF amendments take effect?

The amendments came into force on the date of publication in the Official Gazette, i.e., November 19, 2004.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Superseded by Public Provident Fund Scheme, 2019

📜 Read the original circular — full text as issued by RBI

RBI/2004-05/296

 Ref.No.CO.DT.15.02.001/H-5289-5311/2004-05

 December 09, 2004

 Agrahayana 18, 1926 (S)

 The General Manager

 Government Accounts Department

 State Bank of India and Associate Banks ;

 14 Nationalised Banks and Corporation Bank

 Dear Sir,

 Public Provident Fund Scheme, 1968 - Amendments

 We forward herewith 10 copies of Notification No.G.S.R.755 
 (E) dated 19th November 2004 issued by Government of India, Ministry of Finance, 
 New Delhi amending the provisions to the Public Provident Fund Scheme, 1968 
 as under :

 (i) in paragraph 4, for sub-paragraph (4), the following 
 sub-paragraph 

 shall be substituted, namely :- 

 "(4) Every subscription shall be made in cash 
 or by crossed cheque or draft or pay order in favour of the Accounts Office 
 at the place at which that office is situated." 

 (ii) in paragraph 12, after sub-paragraph (6), the following 
 sub-paragraph shall be inserted, namely :- 

 "(7) A subscriber to the Fund cannot nominate 
 a trust as his nominee." 

 2. These amendments to PPF Scheme 1968 shall come into force 
 on the date of its publication in the Official Gazette i.e. 19th November 2004. 
 You may please issue suitable instructions to all your designated branches/offices 
 authorized to operate the PPF Scheme, 1968. The amendments may also be displayed 
 on the notice board by the above branches/brought to the notice to PPF account 
 holders.

 3. Please acknowledge receipt.

 Yours faithfully,

 Sd/-

 (P.Loganathan)

 Asstt.General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2004-05/296 · issued 09 Dec 2004. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2047&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.