A discontinued PPF account cannot be closed before its maturity period of 15 years but if you want to revive it, the process is very simple
Public Provident Funds (PPF) are considered among the best long-term saving instruments in India. PPF comes with practically no risk and offers an interest rate that is greater than the returns offered on most of the saving schemes. Giving it a greater validity is the fact the PPFs are backed by the government. To start your savings in PPF, you just need to open a PPF account with the nearest post office or a bank with a sum as low as Rs 500. Saving in PPF also offers tax benefits as PPF enjoys the benefit of the EEE (exempt-exempt-exempt) tax model under section 80c of the Income Tax. So, if you are looking to earn some good return on your money while avoiding any form of risk, this could be a good option for you.
However, one of the common issues that are often faced by account holders is the discontinuation of their PPF account. This happens when a PPF account holder fails to contribute the minimum amount in any of the subsequent financial years (April 1 to March 31). Discontinuation of the PPF account blocks the withdrawal facility on the account. The interest will continue to be added to the total sum even during the discontinuation period.
A discontinued PPF account cannot be closed before its maturity period of 15 years but if you want to revive it, the process is very simple.
The discontinued PPF account can easily be revived by writing an application for the revival to the bank or post office where it was opened. In addition, a penalty of Rs 50 for each year of default, Rs 500 for each year of arrear payment, and a minimum subscription fee of Rs 500 for the year in which the account is being revived has to be paid by the account holder.
After completing the formalities, your discontinued PPF account will be activated at the earliest. In case your PPF account has matured while being dormant or discontinued, you first need to revive it to make any withdrawal.
