Relief for investors! Government removes penalty for PPF, RD, other small savings schemes till June 30

In what comes as some relief for investors, the Department of Post has waived penalty/revival amount due for the financial year 2019-20 and for April 2020 in small saving schemes like Public Provident Fund (PPF), recurring deposits(RD), Sukanya Samriddhi Yojana (SSY), etc. The penalty fees has been waived till June 30, 2020.

“The subscribers of RD/PPF/SSA Accounts may deposit the mandated due amount, if any of current F.Y. (2019-20) and April 2020 (as the case may be) in their respective accounts till 30th June, 2020 and no penalty/revival fee shall be charged,” a notice issued by the department read. 

To recall, the investors need to put a minimum of Rs 500 in their PPF account in a financial year. In case they fail to do so, the account becomes inactive and can only be revived by paying a penalty of Rs 50 (for every financial year your account has been inactive) and minimum deposit amount of Rs 500.

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If you miss the instalment of an RD account, it can lead to default fees. A default fee of Re 1 for every Rs 100 is charged, the official website reads. The account becomes inactive if you miss equal to or more than four payments. 

The Sukanya Samriddhi Yojana also has a similar minimum annual deposit. The minimum annual contribution to the Sukanya Samriddhi Account is Rs 250.

As the country is amid a 21-day nationwide lockdown, the investors need to complete their instalments online. PPF, RD or Sukanya Samriddhi account holders can deposit money online through India Post Payment Bank (IPPB) app.