The Public Provident Fund (PPF) requires you to deposit at least ₹500 every financial year to keep the account active. If you fail to deposit the minimum amount in any year, your account becomes inactive (discontinued). An inactive account does not allow fresh deposits until revived. However, the good news is that you can reactivate your PPF account by following certain rules.
Why Does a PPF Account Become Inactive?
- You did not deposit the minimum ₹500 in a financial year.
- You missed deposits for consecutive years.
- You stopped depositing after opening the account.
Note: Even if inactive, the money already in the account continues to earn interest until maturity.
Penalties for Inactive PPF Account
- ₹50 penalty for each year of default.
- No fresh deposit allowed until penalty is cleared.
- You lose the benefit of new deposits during inactive years (though existing balance keeps earning interest).
Rules to Revive an Inactive PPF Account
To reactivate your account, you must:
- Pay ₹500 for each missed year (minimum deposit requirement).
- Pay a penalty of ₹50 per missed year.
- Submit a written request at your bank or post office to reactivate the account.
Once done, your account will be restored, and you can start making fresh deposits again.
Example of Reviving an Inactive PPF Account
Suppose you opened a PPF account in April 2018 but did not deposit anything in FY 2020-21 and FY 2021-22.
- Missed years: 2
- Required minimum deposits = ₹500 × 2 = ₹1,000
- Penalty = ₹50 × 2 = ₹100
- Total to pay = ₹1,100 + fresh deposit for current year
Once you pay this amount, your account will be reactivated.
How to Revive PPF Account – Step-by-Step
- Visit the bank or post office branch where your PPF account is held.
- Fill a PPF reactivation request form (available at branch).
- Pay the pending minimum deposits + penalties.
- Make a fresh deposit for the current financial year.
- The account will be restored, and you can continue deposits.
Important Things to Know about PPF Account Reactivation
- You cannot deposit more than the annual maximum limit (₹1.5 lakh), including revival deposits.
- If you fail to revive the account, it will remain inactive but will mature after 15 years.
- Revival is allowed anytime during the account’s tenure.
FAQs on Inactive PPF Account
Q1. What happens if I don’t revive my PPF account?
Your account will stay inactive. The balance will still earn interest, but you cannot make new deposits.
Q2. Can I revive my PPF account online?
No, revival requires visiting the bank or post office branch with penalty payments.
Q3. How much is the penalty for inactive PPF account?
₹50 per missed year + ₹500 minimum deposit per missed year.
Q4. Can I deposit the revival amount in one go?
Yes, you can pay all pending deposits + penalties in a single transaction to reactivate the account.
Q5. Is there a time limit for reviving inactive PPF accounts?
No, you can revive anytime before maturity, but earlier is better to continue regular contributions.
If your PPF account becomes inactive, you can revive it easily by paying the missed deposits and penalties.
- Deposit ₹500 + ₹50 penalty per missed year.
- Submit a request at the bank or post office.
- Start making deposits regularly to avoid future inactivity.
Staying consistent with your deposits not only keeps your account active but also ensures maximum long-term returns.
