- PPF and SSY accounts holders need to make minimum annual contributions of ₹500 and ₹250 respectively
- Failing to deposit the minimum requisite amount within the stipulated time leads to the account becoming dormant
NEW DELHI: If you have failed to make the minimum contributions in small savings schemes such as the Public Provident Fund (PPF) or Sukanya Samriddhi Yojana (SSY) for fiscal 2019-20, for which the deadline was 31 March, don’t worry you can still deposit the amounts till 30 June, 2020.
Small savings schemes such as PPF and SSY are among the most popular investment avenues across the country and in order to provide relief to investors, the government has extended the contribution deadline for FY 2019-20 to June end from from March 31.
According to the rules, PPF and SSY accounts holders need to make minimum annual contributions of ₹500 and ₹250 respectively. Failing to deposit the minimum requisite amount within the stipulated time leads to the account becoming dormant. While a dormant account continues to earn interest until maturity, to revive the account a penalty fee of ₹50 for per year of default along with the pending minimum contribution of each year is levied. So, if you have a PPF or SSY account make sure you contribute the minimum amount.
However, you can contribute more than the minimum amount, provided it is within the maximum limit i.e. ₹1.5 lakh, in PPF and SSY. However, while making the contributions, you are required to give an undertaking declaring that the maximum limit is not being breached and any excess amount will be returned without any interest.
Remember, that you can only make contribution for FY20 in one go and not in installments till 30 June. Also, interest will start accruing from the day of deposit and not for FY20.