Annual savings plans require you to deposit a certain amount of money every year. If this is not done then the savings plan taken by you may also be closed. In such a situation, to keep that scheme running, you have to deposit a certain amount every year. The names of these schemes include Public Provident Fund (PPF), National Pension System (NPS) and Sukanya Samriddhi Yojana (SSY). If you have taken any one of these schemes or more than one scheme then it becomes very important for you to deposit a certain amount in these schemes before 31st March otherwise your account will be closed or deactivated.
Public Provident Fund (PPF): In a financial year, you have to deposit at least Rs 500 in your PPF account from March 31. If you are not able to deposit money in your PPF account by March 31, then you will have to pay a penalty of Rs 50. For the number of years you do not pay the minimum amount, you will have to pay the penalty for the same number of years and the minimum amount. With this, your account will be considered inactive for the number of years you have not paid the minimum amount. Loan and withdrawal facility is also not available against the amount deposited in inactive account.
Inactive account can be activated only till the completion of the plan period. If you do not activate your PPF account, then after the completion of the tenure of the scheme, the deposited amount is paid along with interest.
National Pension System (NPS): Before March 31, account holders residing in Tier 1 cities of NPS have to deposit an amount of Rs 1000 every year. If he does not do so, his account will become inactive as per the current rules and for the number of years he has not paid, Germany will have to pay a minimum amount of 100 rupees per year. Please note here that there is no minimum payment requirement except in Tier 1 cities.
Sukanya Samriddhi Yojana (SSY): To keep this scheme running, you have to deposit at least 250 rupees per year, the last date of which is 31 March. If you do not deposit the minimum amount, your account will default. You can get your account regularized only for a period of 15 years but to get the account regularized you will have to pay a fine of Rs 50 per annum and a minimum amount.