Public Provident Fund: If your Public Provident Fund (PPF) account has been closed, then it should be started as soon as possible. You can suffer many losses due to inactive PPF account. First of all, let us know why PPF account becomes inactive. Actually, at least 500 rupees have to be deposited in this account every year. This work has to be done for 15 years. Many times people are not able to put even the minimum amount in the account due to various reasons, due to which the account gets closed.
This is how you can restart PPF account
- The process of getting the PPF account restarted is not very difficult.
- To restart the PPF account, you have to visit the bank or post office where it is opened.
- After filling the form you will have to pay the arrears. This means that for the number of years you have not paid, you will have to make a minimum payment of Rs.500 for every year.
- With this payment you will have to pay a penalty of Rs.50 per year.
< li>You have to fill a form here to get the account activated again.
These are the disadvantages of account closure
- In 2016, the government changed the rules and allowed closure of PPF account before maturity in certain situations. This can be done only after the account has been in operation for five years. If your account is inactive then you will not get this facility unless it is made active again.
- Loan can be taken against the balance in PPF account after the third financial year till the end of the sixth financial year. This benefit is also not available in an inactive PPF account.
- Keep in mind that if the account holder wants to open a PPF account other than the closed PPF account, then it will not be allowed to him because there is no such rule. No one person can have two PPF accounts.
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