In case a PPF account holder fails to contribute the minimum amount in any subsequent financial year (April 1 to March 31), the account is treated as discontinued.
PPF is one of the best saving schemes in India with very low risk and a high interest rate. This is a government backed investment scheme. Customers can open a PPF account in banks or post offices.
However one of the most common problems that the accountholders often encounter is the discontinuation of accounts.
There have been instances where customers have found out that their PPF account has expired. This is a very common problem which needs to be addressed.
If you encounter any such issues, then you need to renew it through an application in a related form. However first its important to know in which situation your PPF account can expire.
Why PPF account expires
In case a PPF account holder fails to contribute the minimum amount in any subsequent financial year (April 1 to March 31), the account is treated as discontinued.
The minimum deposit amount is Rs 500. In the event of this, the account holder tends to lose withdrawal facility.
In such circumstances the accountholders can also not avail loans on their PPF money.
The subscriber will get back his amount only after the expiry of the maturity period of 15 years along with interest which will continue to be added each year (even in the discontinued account) on the balance at a rate fixed by the government from time to time.
A discontinued account cannot be closed before the maturity date. However, if one wants to revive the account, it can be done any time before its maturity date, which is mentioned on the PPF passbook.
How to revive PPF account
The process to revive one's discontinued PPF account involves submitting a written application for reviving the account at the bank or post office where it was opened.
Additionally, a penalty of Rs 50 for each year of default, Rs 500 for each year as arrear payment, and a minimum of Rs 500 as subscription for the year in which the account is being revived is to be paid.
The total deposit in a year, shall be inclusive of deposits made in respect of years of default of previous financial years.
PPF related information
Minimum deposit Rs 500 in a financial year and maximum deposit is Rs 1.50 lakh in that year.
Maximum limit of Rs 1.50 lakh shall be inclusive of the deposits made in his/her own account and in the account opened on behalf of minor.
Amount can be deposited in any number of installments in a financial year in multiple of Rs 50.
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 "How to revive a discontinued PPF account")
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