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Published on 28/09/2019 2:18:22 PM | Source: HT Media

How to revive your dormant PPF account: Things to know

Posted in Top Stories| #Public Provident Fund (PPF) #Wealth

If you fail to contribute to your Public Provident Fund (PPF) account for a year, it would become dormant. In order to keep your account active, you need to make a minimum contribution of ₹500 yearly. An inactive account will still earn you interest till maturity.

Here is the process to reactivate a dormant PPF account:

-To reactivate a dormant account, you need to visit the post office or bank branch where your account is held and submit a written application.

-You need to pay ₹500 for each year that the account remained inactive. For example, if your PPF account was inactive for a tenure of 5 years, then you will have to pay ₹2,500 to get the account activated.


-You have to pay a fine of ₹50 for each year the account remained inactive. For instance, the account remained inactive for 3 years, then the total fine payable by you will be ₹150. This will be in addition to the minimum ₹500 amount.

- Once the verification process is carried out, your PPF account will be reactivated.

Once your account is discontinued, you will only be able to withdraw the full amount on maturity, which is 15 years after the account is opened. You can’t contribute to the account once it’s discontinued.

If your PPF account is dormant, you will not be able to claim tax benefits. PPF has an ‘exempt, exempt, exempt’ (EEE) status, which means that it provides subscribers with deduction benefit up to ₹1.5 lakh under Section 80C on deposits and tax-free interest and returns.