How To Reactivate inactive PPF Account
PPF Account: There is A Possibility That The Public Provident Fund Account Will Be Deactivated If The Amount is Not Deposited Regularly. That is Why Experts Advise To Continue This Investment Regularly. A Minimum Deposit Of Rs.500 Per Financial Year Is Mandatory In This Account. Know The Details.
Public Provident Fund (PPF) is One Of The Popular Small Savings Schemes Of The Central Government. The Scheme Currently Offers An Interest Rate of 7.1%. Every Quarter Central Government Announces The Rate Of This Scheme. Besides, As Per The Income Tax Act, 1961, Investment in This Low Savings Scheme Is Eligible For Tax Deduction Of Up To One And A Half Lakh Rupees. The Total Amount Of This Scheme At The Time Of Maturity is Tax Free Along With The Annual Interest.
A Minimum Investment of Rs 500 Per Financial Year Is Required In This Scheme Of 15 Years Tenure. But if The Customer Does Not Follow This Rule, The Account Will Be Deactivated. However, in a Dormant Account The Customer Will Continue To Earn Interest Till The Expiry Date. But Such Accounts Also Have Problems. If The Account Is Inactive, Then You Cannot Claim Loan For PPF Account. If You Need Money Fast, This Is Problematic.
How To Reactivate An Inactive PPF Account?
As per Axis Bank ‘s Website, The Process For Opening A Dormant PPF Account Is As Follows:
- Send a Written Request To The Branch of The Bank Or Post Office Where you have your Public Provident Fund account.
- After Sending The Written Request, You Have To Deposit Rs.500 Per Year For The Account Which Is Deactivated. Besides, Rs.500 Must Be Deposited For The Current Financial Year Also.
- For The Number Of Years Your Account Has Been Inactive, You Will Also Have to Pay A Penalty of Rs 50 per year. It should Be Submitted Along With The Application At The Bank Or Post Office Branch.
- The Bank Or Post Office Branch Will Review Your Records After The Application And Check Deposit Are Complete. But the Account Cannot Be Reactivated After The Lock-in Period of 15 years is completed.
Interest is calculated on the PPF account at a minimum rate between the fifth and last day of every month. The customer gets this interest rate on 31st March every year.