PPF account: Here is how you can revive an expired account

PPF account: Public Provident Fund (PPF) is one of the best saving instruments in India with very low risk and a good interest rate. This is a government backed investment scheme. Customers can open a PPF account in banks or post offices with as less as Rs 500. PPF enjoys the benefit of EEE (exempt-exempt-exempt) tax model under section 80c of the Income Tax. It is considered good for those with less appetite for risk and seeking long term wealth appreciation. However, one of the most common problems that the PPF account holders often encounter is the discontinuation of accounts.  

There have been instances where customers have found out that their PPF account has expired. If you encounter any such issues, then you need to renew it through an application in a related form. However, first it is important to know in which situation your PPF account can expire.  

In case, a PPF account holder fails to contribute the minimum amount in any subsequent financial year (April 1 to March 31), the account is treated as discontinued. In the event of this, the account holder tends to lose withdrawal facility.  

In such circumstances the accountholders can also not avail loans on their PPF money.

The subscriber will get back his amount only after the expiry of the maturity period of 15 years along with interest which will continue to be added each year (even in the discontinued account) on the balance at a rate fixed by the government from time to time.

A discontinued account cannot be closed before the maturity date. However, if one wants to revive the account, it can be done any time before its maturity date.

One can revive discontinued PPF account by submitting a written application for reviving the account at the bank or post office where it was opened.  

Additionally, a penalty of Rs 50 for each year of default, Rs 500 for each year as arrear payment, and a minimum of Rs 500 as subscription for the year in which the account is being revived is to be paid.  

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The total deposit in a year, shall be inclusive of deposits made in respect of years of default of previous financial years.