Public Provident Fund or PPF is a long-term savings scheme where the depositor has to stay invested for 15 years and make at least one yearly contribution to keep it active. However, many depositors don’t realise that missing the minimum deposit amount in a year will render their account inactive. Read this article to understand the penalties, consequences, and solutions of missing the minimum PPF contribution.
Minimum Yearly Deposit Requirement for PPFTo keep your PPF account active, it is mandatory to deposit at least Rs. 500 every financial year (April to March). |
Read in Detail: Public Provident Fund (PPF)
What Happens When a PPF Account Becomes Inactive
Your inactive PPF account will still earn interest but the account gets restricted and you are not allowed to perform certain tasks against it. Let us have a look at how an inactive PPF account impacts you:
| Feature of PPF | Impact of Inactive Status |
| Account Status | Becomes inactive; no further deposits allowed until reactivated |
| Loan/Withdrawal Access | Temporarily blocked; you cannot take loans or make partial withdrawals |
| Interest Earnings | Interest is still earned on the existing balance but no fresh contributions are allowed |
| Maturity | The account still matures after 15 years, but access is limited unless revived after maturity |
Also Read: PPF Interest Rate 2025-26
How to Reactivate an Inactive PPF Account
The good news here is that you can activate your PPF account even after years of inactivity. Follow the steps provided below to reactivate your PPF account:
- Submit a written request to the bank or post office requesting for reactivation
- Pay the penalty amount (Rs. 50 for every year of inactivity)
- Deposit the minimum yearly deposit amount of Rs. 500 for every year.
Let us understand the amount payable with the help of an example:
If you miss the payment by 3 years, you will have to make the payment accordingly:
| Penalty = Rs. 50 x 3 (for 3 years of inactivity) = Rs. 150 Deposit = Rs. 500(minimum deposit required) x 3 = Rs. 1500 Total amount payable for reactivation = Rs. 150 + Rs. 1,500 = Rs. 1,650. |
Your account would be activated and you will be able to make additional fresh deposits in your PPF account. Now you can also make fresh investments as per your requirements for the current financial year.
How to Avoid Missing Deposits in Future
| Steps | Why is it Required |
| Deposit Early in the Financial Year | Reduces the risk of missing the deadline. |
| Set Up Auto-Payment | Helps keep your account active automatically. |
| Use Calendar Alerts | Helps plan your investment well before the cut-off. |
| Monitor your PPF Deposits | Helps track deposits and account status easily. |
Suggested Read: PPF Returns on Maturity
Important Things Related to Inactive PPF Deposits
- Your PPF account can be revived anytime, regardless of its duration of inactivity.
- Try to invest the total amount by 5th April every year to earn the highest interest and prevent account inactivity.
- You must pay the penalty + missed deposit for every default year.
- Interest keeps on accumulating during inactivity, but access to funds is limited.
- Reviving your account restores loan, withdrawal, and deposit privileges.
PPF account helps save on the income tax by claiming deductions under Section 80C. Inactivity of your PPF account will prevent you from making fresh deposits. You should not miss any deposit as it will disrupt your long-term financial goals. If you have started investing recently, do not forget to check your PPF contributions before 31st March every year.
