The Public Provident Fund (PPF) continues to be a favourite savings avenue for many, even after several decades. The PPF, which is one of the most popular savings-cum-investment options in India, allows individuals to invest up to Rs 1.5 lakh each year and also provides a tax deduction under Section 80C of the Income Tax Act.
PPF is a 15-year scheme, which can be extended indefinitely in block of five years. The account holder is supposed to deposit a minimum of Rs 500 every financial year. The PPF account can be opened in a designated post office or a bank branch. But if one fails to deposit the amount, your account will be rendered inactive.
Here's how one can revive a dormant PPF account:
Written application: The account holder needs to approach the bank or the post office with a written application for account reactivation.
Penalty fee: The account holder will need to pay penalty fee of Rs 50 per year (the number of years the accounts has been dormant). For example, if the account has been dormant for three years, he or she will have to pay Rs 150 as penalty.
Deposit: Pay the minimum yearly deposit amount of Rs 500 for each year the account has been inactive.
Process: Visit the branch of PPF account once more to complete the verification process. On completing the formalities, your account will get activated.