The Public Provident Fund (PPF) requires you to deposit at least ₹500 every financial year to keep the account active. If you fail to deposit the minimum amount in any year, your account becomes inactive (discontinued). An inactive account does not allow fresh deposits until revived. However, the good news is that you can reactivate your PPF account by following certain rules.
Why Does a PPF Account Become Inactive?
- You did not deposit the minimum ₹500 in a financial year.
- You missed deposits for consecutive years.
- You stopped depositing after opening the account.
Note: Even if inactive, the money already in the account continues to earn interest until maturity.
Penalties for Inactive PPF Account
- ₹50 penalty for each year of default.
- No fresh deposit allowed until penalty is cleared.
- You lose the benefit of new deposits during inactive years (though existing balance keeps earning interest).
Rules to Revive an Inactive PPF Account
To reactivate your account, you must:
- Pay ₹500 for each missed year (minimum deposit requirement).
- Pay a penalty of ₹50 per missed year.
- Submit a written request at your bank or post office to reactivate the account.
Once done, your account will be restored, and you can start making fresh deposits again.
Example of Reviving an Inactive PPF Account
Suppose you opened a PPF account in April 2018 but did not deposit anything in FY 2020-21 and FY 2021-22.
- Missed years: 2
- Required minimum deposits = ₹500 × 2 = ₹1,000
- Penalty = ₹50 × 2 = ₹100
- Total to pay = ₹1,100 + fresh deposit for current year
Once you pay this amount, your account will be reactivated.
How to Revive PPF Account – Step-by-Step
- Visit the bank or post office branch where your PPF account is held.
- Fill a PPF reactivation request form (available at branch).
- Pay the pending minimum deposits + penalties.
- Make a fresh deposit for the current financial year.
- The account will be restored, and you can continue deposits.
Important Things to Know about PPF Account Reactivation
- You cannot deposit more than the annual maximum limit (₹1.5 lakh), including revival deposits.
- If you fail to revive the account, it will remain inactive but will mature after 15 years.
- Revival is allowed anytime during the account’s tenure.
Step-by-Step Process to Reactivate a PPF Account
If your PPF account has gone inactive, don’t stress. Getting it back on track is actually quite easy.
1. Visit Your Bank or Post Office
First, visit the bank branch or post office where your PPF account is held. PPF reactivation usually can’t be done online, so you’ll need to go in person.
2. Ask for Account Revival
Tell the staff that your PPF account has become inactive and you want to revive it. They’ll either give you a revival form or ask you to submit a simple written request with your account details.
3. Pay the Penalty and Deposit Amount
To reactivate the account, you’ll need to pay:
- ₹50 as penalty for each year the account was inactive
- ₹500 minimum deposit for each missed year
You can pay both amounts together during the revival process.
4. Get Your Account Activated Again
Once everything is submitted and paid, the bank or post office will process your request. After confirmation, your PPF account becomes active again, and you can continue investing like before.
FAQs on Inactive PPF Account
1. What does an inactive PPF account mean?
An inactive (or discontinued) PPF account is one where you did not deposit the minimum ₹500 in a financial year. Once this happens, the account stops accepting fresh deposits until it is revived.
2. When does a PPF account become inactive?
Your PPF account becomes inactive if no contribution is made in a financial year. Even missing the minimum deposit for just one year can make the account inactive.
3. Can I deposit money in an inactive PPF account?
No. Fresh deposits are not allowed in an inactive PPF account. You must first reactivate the account by paying the required penalty and minimum deposit.
4. Will my money still earn interest if the PPF account is inactive?
Yes. The existing balance continues to earn interest even if the account is inactive. However, you won’t be able to enjoy full PPF benefits until it is revived.
5. How can I reactivate my inactive PPF account?
You can reactivate your account by:
- Visiting your bank or post office
- Submitting a revival request
- Paying ₹50 penalty per inactive year
- Depositing ₹500 per missed year
- Once processed, your account becomes active again.
6. Is there any time limit to revive a PPF account?
No, there is no strict deadline. You can revive your inactive PPF account any time before maturity by following the revival process.
7. What happens if I don’t reactivate my PPF account?
If you don’t revive it:
- You can’t make further deposits
- You may face restrictions on loans and withdrawals
- The account will continue till maturity with limited benefits
8. Can I withdraw money from an inactive PPF account?
Withdrawals are usually restricted in an inactive account. Full withdrawal and loan benefits are available only after the account is reactivated.
9. Do I need to reactivate the account for every missed year?
No. You can revive the account in one go by paying the total penalty and minimum deposit for all the missed years together.
10. Can a PPF account be closed if it remains inactive?
No, an inactive PPF account does not get automatically closed. It continues till maturity, but with limited flexibility unless revived.
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