New Delhi: PPF Account Alert – Public Provident Fund is a popular small savings scheme where people can invest a minimum of Rs 500 annually up to maximum of Rs 1,50,000 per annum. The original duration of a PPF account is 15 years.
You can open a PPF account in private, government banks, and Post Office branches. While rate of interest on a PPF account is decided by the Union Finance Ministry. At the PPF account interest rate is 7.1 per cent per annum. One can avail Income Tax benefits under Section 88 of Income Tax Act.
However, if your PPF account is not active any more or has become deactivated, you can once again reactivate it by following steps.
How to reactivate your PPF Account
Firstly, if you are the PPF account holder, you need to submit a written letter citing details and pertinent documents to the facility where your PPF account is – i.e banks or post office branches.
While, you have to make request to reactivate the PPF account, penalties and deposit will have to be made for the tenure which the PPF account remained inactive. This type of deposit is usually made via cheque payment.
The respective bank or post office branch will verify the request. This type of request can be made any time during the 15-year tenure of the PPF account.
However, a PPF won’t be reactivated once the 15-year tenure completes.
In such scenario, PPF account holder will receive the maturity amount based on the amount already deposited. She or he needs to pay a penalty amount of Rs 50 per financial year during which the PPF was inactive.
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