Post Office Alert! If you also invest in Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) schemes, then there is important information for you. If you have not made minimum deposit in PPF and SSY, then do it before March 31, 2023.
To keep PPF and SSY active/regular, it is necessary to deposit a minimum amount in a financial year. This minimum deposit for PPF account is Rs 500 in a financial year and Rs 250 for Sukanya Samriddhi Scheme.
What will happen if the minimum account is not deposited
According to the rules, if the minimum amount is not deposited in PPF and SSY accounts within a financial year, then both these accounts become inactive. Therefore, if you have opened an account in either of these two schemes, make the minimum deposit for the current financial year before the end of March. Otherwise the account will become inactive. Although inactive accounts can be made active again, but for this penalty has to be paid.
There is a rule in the post office that if the inactive SSY account is not revived by paying the penalty, then it will become a normal savings account of the post office and interest will be paid accordingly on the total amount present in it.
How to activate PPF account
To reactivate the inactive PPF account, the account holder will first have to submit an application to the bank or post office where the PPF account is maintained. Apart from this, the investor will have to pay a penalty of Rs.50 per annum and Rs.500 per annum as the minimum balance amount, counting from the time/year in which deposits have not been made in the account.
Also, the minimum installment of Rs 500 has to be deposited for the year in which the PPF account is being revived. Only after this the account becomes active again. Do note that inactive/discontinued PPF can be revived before the maturity of the account. The maturity period of PPF is 15 years.
How will SSY account be revived?
Deposits in Sukanya Samriddhi account can be made for a maximum period of 15 years from the date of its opening. This account can be opened in the name of a girl child below 10 years of age. The process of reviving SSY is also like that of PPF account. To bring the SSY account back into active mode, a penalty of Rs.50 per annum and a minimum balance of Rs.250 per year will have to be deposited, counting from the period/year from which the deposit has not been made in the account.
At the same time, in the year in which SSY is being revived, the minimum installment of Rs 250 will also have to be deposited for that year. Only after this the account becomes active again. Remember that the inactive SSY account can be revived before the completion of its 15 years.