If a Public Provident Fund (PPF) subscriber doesn’t make at least one contribution in a financial year, his or her account becomes inactive.
The minimum contribution in PPF is Rs 500 in a financial year. If your PPF account has been “discontinued”, here’s how you can revive it.
The subscriber has to write an application to the concerned bank or post office branch requesting reactivation.
Along with the application, the subscriber has to make the minimum Rs 500 payment for each financial year when his account was inactive.
You also have to pay Rs 50 as a penalty for every financial year the account was inactive. An inoperative account can be revived anytime during the 15-year maturity period.
Subscribers with inactive accounts cannot avail premature withdrawal facility or take a loan against the funds in their PPF account.
Your money in an inactive PPF account continues to earn interest at the prevailing rates.