Be careful, if these things are not done till 31st March, PPF, NPS and Sukanya accounts may be closed: – ..
News India Live, Digital Desk: For most government savings schemes in India, calculations are based on the financial year (April 1 to March 31). If you have not made minimum mandatory contribution in your accounts in the current financial year (2025-26), your account ‘Default’ Will fall into the category.
Minimum Deposit Rules for Major Schemes
| savings plan | minimum annual deposit | What will happen if there is a mistake? |
|---|---|---|
| Public Provident Fund (PPF) | ₹500 | The account will become ‘Inoperative’. Loan and withdrawal facilities will be closed. |
| Sukanya Samriddhi (SSY) | ₹250 | The account will be considered ‘Default’. There will be no reduction in interest rates, but operations will stop. |
| National Pension System (NPS) | ₹1,000 (Tier-1) | Your PRAN account will be ‘Freeze’. Tier-2 accounts may also be affected. |
Disadvantages of account being ‘inactive’
Loss of tax benefits: you income tax section 80C Will not be able to take advantage of the exemption available under the Income Tax Act (in the old tax system).
Ban on loans and withdrawals: Partial withdrawal and loan facilities available in accounts like PPF will not be available unless the account is active.
Penalty: To reopen the account, you will have to pay the outstanding amount along with the penalty.
How to restart inactive account? (How to Reactivate)
If you miss the March 31 deadline, you will need to follow the following procedure:
For PPF: Minimum amount of ₹ 500 every year + ₹50 per year Fine of Rs.
For SSY: Minimum amount of ₹250+ ₹50 per year Fine of Rs.
For NPS: Balance contribution of ₹1,000 + fine of ₹100. For this you may have to give a written request to your respective bank or POP (Point of Presence).
Avoid last minute panic
On March 31, there is a risk of online transactions failing due to increased server load or bank holidays. Therefore it is advised that March 25th Pay all your required deposits online or through cheque.
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