If the minimum amount is not deposited in the PPF account, the account becomes inactive after a certain time. To make it operational again, other procedures will have to be completed including paying the fine.
How to Reactivate Dormant PPF Account
Public Provident Fund (PPF) is a better option for investment. You can invest in it with just Rs 500. You can invest a maximum of Rs 1.5 lakh in this. Tax exemption is also available on this. But during the Corona period, many people have not been able to deposit its installment due to lack of money, due to which the account has been closed. If you are also among such people then there is no need to take tension. Because you can activate it again by following some procedures.
Investment in PPF account is done for a period of 15 years. PPF account becomes inactive for not making a minimum investment of Rs 500 every year. Along with this, other benefits available on this are also not available. In such a situation, you will have to pay a penalty to get the PPF account closed again.
How to reactivate account
To re-activate the PPF account, you have to visit the bank or post office where you have opened your PPF account. Here you have to fill a form related to it. Along with this, you will have to pay the amount of fine and arrears. The calculation of arrear amount is based on the period of non-deposit of PPF amount on your part. Apart from this, you will also have to pay penalty. This penalty is to be paid at the rate of Rs 50 per annum.
How much arrears will have to be paid
If someone’s PPF account is closed for 4 years, then you will have to pay arrears of about Rs 2000. Along with this, you will have to deposit a penalty of Rs 200. Because annually it will attract a fine of Rs 50.
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Good news for PF account holders! Money will come in the account soon, EPFO will send interest