How to Reactivate a Dormant PPF Account ?

Know to reactivate a dormant PPF account – Public Provident Fund (PPF) allows individuals to invest up to Rs 1.5 lakh each financial year. It provides a tax benefit under Section 80C of the Income Tax Act. PPF account has a validity of 15 years and to keep the PPF account alive, the account holder is supposed to deposit a minimum of Rs 500 every financial year.

Failure to deposit the minimum amount in the account leads to inactive. Afterwards, one can reactivate the account by following the below mentioned steps.

Giving a Written application

PPF account can be opened with Banks, Post office etc. For the revival of an inactive PPF account, the account holder needs to make a written request to the bank or the post office branch where the account is located. The application can be made any time during the 15 year period of the account.

Minimum Deposit

The PPF investor will be required to deposit a minimum of Rs 500 for each financial year of the period when the account was inactive. The cheque or debit mandate needs to be submitted to the branch along with the application.

Also Read – Can PPF Account be Continued Without Making Future Deposits?

Reactivation Charges/Penalty

To revive the account, the bank or post office charges a penalty of Rs 50 for each financial year in which the account was in an inactive state. The penalty needs to be deposited along with the payment of arrears.

This is to remember that If the period of deposit (15 years) has elapsed, the account can’t be revived. However, one can access the maturity proceeds by paying the penalty.

IMPORTANT TO NOTE – Reactivate a dormant PPF account

• The amount in a PPF account continues to earn interest even while it is inactive.
• One cannot avail a loan against an inactive PPF account.