Your PPF account has been discontinued and you want to revive it? Learn the process step by step 

PPF Account- The Public Provident Fund (PPF) is a highly popular long-term investment option that not only offers excellent returns but also offers tax benefits. Deposits in PPF are tax-deductible under Section 80C, the interest earned is tax-free, and the maturity amount is tax-free. It is a Triple E (EEE) category investment, considered the best for tax savings.

However, sometimes, for various reasons, we forget to make the minimum annual deposit into our PPF account, and as a result, our PPF account becomes discontinued or inactive. If your PPF account has been discontinued, there’s no need to worry. It can be revived. Let’s explore how to reactivate a discontinued PPF account, the penalties, and the rules.

Why does your PPF account get closed?

The most common reason for PPF account discontinuation is not making the minimum annual deposit. To keep a PPF account active, it’s necessary to deposit at least ₹500 each financial year. If you fail to make this minimum deposit in any financial year, your account is placed in the “discontinued” category.

Why is it important to revive discontinued PPF?

Even after the account is closed, it continues to earn interest, but why is it necessary to revive it? Here’s why.

Loan and withdrawal facility

Once your account is discontinued, you cannot take out a loan or avail partial withdrawal facilities. You can only use these facilities after your account is revived.

Full amount on maturity

If your account remains closed and you don’t revive it, you’ll only receive your deposit amount and any accrued interest upon maturity. However, after reviving, you can fully access the account with all its benefits.

Complete process to revive PPF account

Reviving a discontinued PPF account is a simple process. You need to follow these steps:

Step 1: Contact your branch

First of all, you have to visit your bank branch or post office where your PPF account is opened.

Step 2: Fill the application form

There, you’ll need to fill out an application form for PPF account revival. You can get this form from your bank or post office. In this form, you’ll need to fill in your account details, penalty details, and the outstanding minimum deposit.

Step 3: Deposit the outstanding minimum deposit

You will have to make a minimum deposit of Rs 500 every year for the number of years your account has been discontinued.

Step 4: Pay the penalty

Along with the minimum deposit, you will also have to pay a penalty of Rs 50 for every discontinued year.

Step 5: Submit the documents

Along with the application form and payment slip, you may also need to submit other necessary documents, such as a copy of your PPF passbook, identity proof, and address proof. However, in most cases, just the passbook and form are sufficient.

Step 6: Get your passbook updated

After the entire process is complete, do not forget to update your PPF passbook to reflect the new status and the amount deposited.