Public Provident Fund: There is important news for those having PPF account. If you had also opened a Public Provident Fund account, but it has been closed due to some reason, then you may have to suffer a big loss. If your account is also closed, then you should get it activated as soon as possible. Let us tell you what kind of loss you may have to face-
Why PPF Account gets closed?
Let us tell you that if you do not transfer money to this account every year, then your account will be closed. In this account, you have to deposit a minimum of 500 rupees annually and you have to do this work for 15 years. Many times they forget to put money for any reason or if they are not able to put it, then their account gets closed.
How to start PPF Account-
- The process of getting the PPF account started again is not very difficult.
- To re-activate PPF account, you have to visit the bank or post office where it is opened.
- Here you have to fill a form to get the account activated again.
- After filling the form, you have to pay the arrears. This means that for every year in which you have not paid, you will have to make a minimum payment of Rs 500.
- Along with this payment, you will also have to pay a penalty of Rs 50 per year.
What is Public Provident Fund (PPF)
Talking about PPF account, customers can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh in this account. Apart from this, if we talk about its maturity, that period is 15 years. At the same time, if you need more money, then after 8 years you can debit some percentage of it. One cannot deposit in PPF more than 12 times in a financial year.
Government changed many rules
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, you will not get this facility unless it is activated again.
Cannot open 2 PPF accounts
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.