The Department of Post has waived penalty/re-issue fees for not putting in money of a minimum amount because for financial year 2019-20 and for April 2020 in different small savings initiatives. The penalty/revival fees has been waived till June 30, 2020 on schemes like Public Provident Fund (PPF), recurring deposits (RD),to name a few.
In a recently issued by the department on March 31, the department said: “The subscribers of RD/PPF/SSA Accounts may deposit the mandated due amount, if any of current F.Y. (2019-20) and April, 2020 (as the case may be) in their respective accounts till 30th June, 2020 and no penalty/revival fee shall be charged.”
The decision has been taken by the Ministry of Finance as many investors have not been able to deposit money into their accounts on time due to the nationwide lockdown.
Penalty for not depositing minimum amount
In a PPF, if you do not invest at least Rs 500 in one financial year, your account will become inactive. You can revive the account by paying a penalty of Rs 50 (for every financial year your account has been inactive) and minimum deposit amount of Rs 500.
Similarly, missing an instalment of an RD account can lead to default fees. As per the India Post website, default fee of Rs 1 for every Rs 100 is charged. Like PPF, girl child saving scheme, Sukanya Samriddhi Yojana (SSY) also requires minimum deposit in a single financial year.