PPF Account: Public Provident Fund (PPF) is considered one of the most popular investments in the country. An individual can invest up to Rs 1.5 lakh in a PPF account for a period of 15 years.
It also gives good returns to the investors. Explain that to keep the account active, the depositor has to put at least Rs 500 in the account in 1 year. If the amount is not credited by the due date, your account becomes inactive. But investors need not panic. You can restart your account by following some easy steps. Know some special things related to PPF account.
When does PPF account become inactive?
Public Provident Fund Account (PPF) becomes inoperative when the depositor fails to deposit a minimum amount of Rs 500 in a financial year. The account holder can restart his PPF account by following steps.
1. Submit Written Application
If a person’s PPF account has become inactive, then first of all the account holder will have to submit a written request to the branch of the bank or post office where he has opened the account. Please note that you can apply at any time during the 15-year tenure of the account.
2. Minimum deposit with fine
When an investor wants to get his dormant account revived, he will have to deposit a minimum of Rs 500 for the number of years the account was closed and also pay a penalty of Rs 50 for each financial year in which the account was inactive. The depositor has to deposit the check along with the application at the bank branch.
3. Importance of 15 years period for investigation
After the application of the account holder, the bank or post office will check whether the period of 15 years of your PPF account has been completed or not. On successful verification, your PPF account will be restarted. On the other hand, if the tenure of 15 years has expired, then your account cannot be restarted.
