How Do You Revive A Dormant Public Provident Fund? All You Need To Know

If you are stuck and want to know how to revive a dormant PPF account, then read on to know the details.

Simren Rodrigues

November 9, 2020

Trending News

3 min


What is a Public Provident Fund or PPE as widely used? PPE is a tax saving instrument introduced by the National Savings Institute of the Ministry of Finance. It came to existence in the year 1968. PPF aims at mobilizing small savings and also offers an investment with reasonable returns with a combination of income tax benefits. PPF has a lock-in period of about 15 years. To keep the account active, the investor needs to deposit a minimum of Rs 500 in a financial year. Failing which, the account will be termed as a dormant account. Here’s how you can revive a dormant PPF account.

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How to revive dormant PPF account?

Experts suggest that if due to any reason the investor forgets to invest in their PPF, the account becomes dormant. However, this deactivation doesn’t mean that they will lose the money but that they can no longer contribute to the account. The investors may also lose certain benefits as a PPF subscriber. According to a news portal, Raghvendra Nath, managing director, Ladderup Wealth Management explains that a dormant account continues to accrue interest for the deposited amounts. However, certain facilities such as loan against the investment made would not be eligible. In such a case, it is necessary to revive the account as soon as possible.

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To do so, the investor needs to write a written request of activation of the account to the bank or the post office where the account is held. Later, they need to pay a sum of Rs 500 as deposit and Rs 50 as a penalty for each year of inactivity. According to the report, Nath uses an example to explain this fundamental. Assuming the account is inactive for the last two years, the investor will need to pay Rs 500 x 2= Rs 1000 as a deposit and Rs 50 x 2= Rs 100 as a penalty.

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Aside from the tax benefits of PPF, the returns offered are backed by the government. Another benefit is its long tenure that helps you make the most of compounding and build a good amount for goals like retirement. Hence if you have a PPF account that has become dormant, it is best to get it revived as soon as possible.

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