Step-by-Step Guide To Revive Your Inoperative PPF Account

A fixed rate of return, currently 7.1%, is provided by the Public Provident Fund (PPF) and announced quarterly. Up to Rs 1.5 lakh of PPF investments are free from taxes each year under Section 80C of the Income Tax Act. Both the maturity amount and the yearly interest are exempt from taxes.

The account, which has a 15-year validity time, requires the account user to deposit a minimum of Rs. 500 per fiscal year.

What Happens When An Account Goes Inactive?

The minimum amount that has to be placed into their PPF account each financial year is Rs 500. Should you fail to comply with it, the account becomes deactivated.

There are drawbacks to dormant accounts as well, even though they will still accrue interest until they mature in line with the laws. You cannot take out loans against your PPF account if the account is inactive, which might be problematic if you anticipate needing money soon.

How Do I Get My Dormant PPF Account Back Online?

The steps to restart a dormant PPF account are mentioned below

  • To access your PPF account, you must submit a formal request to the post office branch or your bank. 
  • After that, you must deposit Rs. 500 for each year the account has been inactive as well as an additional Rs. 500 for the current fiscal year. 
  • For each year that has gone, you must also pay a penalty of Rs 50.
  • Combined with the application, these deposits must be made in the bank or post office branch.
  • The bank or post office branch will evaluate your records following the completion of the application and cheque deposit. The account cannot be revived once the 15-year lock-in term ends. 

Disadvantages Of Inactive PPF Account

You can take money out of the PPF account in the event of an emergency, for instance, or if you need to pay for your children’s education, build or buy a house, etc. Another option is to get a loan that is secured by your PPF account. However, these services are only available to active accounts that have had a deposit made at least once a year.

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Stuti Talwar

Expressing my thoughts through my words. While curating any post, blog, or article I'm committed to various details like spelling, grammar, and sentence formation. I always conduct deep research and am adaptable to all niches. Open-minded, ambitious, and have an understanding of various content pillars. Grasp and learn things quickly.

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