How to reactivate your lapsed PPF account — A step by step guide
annual investment in the PPF can range from a minimum of ₹500 to a maximum of ₹1.5 lakh. Failure to meet the minimum annual contribution of ₹500 may result in the classification of your account as inactive, eventually leading to its closure. If a minimum deposit of ₹500 is not made within a financial year (April 1st to March 31st), your account will be labelled as “inactive".
Inactive accounts do not accrue interest and are not eligible for withdrawals. Reactivating an inactive PPF account is feasible, but specific steps must be adhered to, and potential penalties may be incurred. However, before initiating the revival process for your seemingly lapsed PPF account, ensure that it is genuinely discontinued and not merely inactive.
An inactive account, inactive for a year without contributions, can be easily revived. In contrast, a discontinued account, inactive for two consecutive years, necessitates additional steps for reactivation. Additionally, keep in mind that you cannot restore a permanently closed account.
If your account has been closed for over two years without any activity, the funds are refunded without interest, and revival is not an option. Post the reactivation of your PPF account, you are restricted to partial withdrawals or utilizing the loan facility. The reinstated account will resume earning interest from the date of reactivation.
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