Top News

As the financial year 2025–26 comes to an end, investors who hold accounts in government-backed savings schemes such as the Public Provident Fund (PPF), National Pension System (NPS), or Sukanya Samriddhi Yojana (SSY) must complete an important requirement before March 31, 2026. Failing to do so could lead to the account becoming inactive or frozen.

These popular small savings schemes require account holders to deposit a minimum amount every financial year to keep the account operational. If the required contribution is not made within the financial year, the account may become inactive, and restoring it later may involve additional penalties and paperwork.

For investors, especially those planning long-term savings and tax benefits through these schemes, ensuring the minimum yearly deposit before the deadline is essential.

Minimum Contribution Required in PPF

The Public Provident Fund (PPF) is one of the most trusted long-term savings schemes backed by the Government of India. It offers stable returns along with tax benefits, making it a preferred investment option for many individuals.

However, to keep a PPF account active, account holders must deposit at least ₹500 in every financial year. If the minimum contribution is not made during a particular year, the account becomes inactive.

An inactive PPF account restricts several benefits. Investors cannot take loans against the account or make partial withdrawals until the account is reactivated.

The good news is that an inactive PPF account can be revived. To reactivate it, the account holder must deposit ₹500 for each missed financial year along with a penalty of ₹50 per year. Completing this process restores the account and its associated benefits.

Sukanya Samriddhi Yojana: Minimum Deposit Rules

The Sukanya Samriddhi Yojana (SSY) is a government scheme designed to encourage parents to save for their daughter’s future. It offers attractive interest rates and tax benefits, making it one of the most popular long-term savings options for girl children.

To maintain an active SSY account, investors must deposit a minimum of ₹250 every financial year.

If the minimum amount is not deposited during a financial year, the account is classified as a default account. Similar to PPF, the account can still be revived later.

To reactivate a default SSY account, the account holder needs to deposit ₹250 for each missed year along with a penalty of ₹50 per year. Once the payment is made, the account becomes active again.

NPS Contribution Requirement

The National Pension System (NPS) is a retirement-focused investment scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It is widely used by individuals looking to build a retirement corpus.

For NPS Tier-I accounts, a minimum annual contribution of ₹1,000 is mandatory.

If this amount is not deposited within the financial year, the NPS account may be frozen. A frozen account restricts further transactions until it is reactivated.

To restore the account, the subscriber must deposit the pending contribution along with a penalty of ₹100.

Additional Benefit: Tax Savings

Apart from long-term financial security, these government savings schemes also offer significant tax advantages.

Under the old income tax regime, investments in PPF and Sukanya Samriddhi Yojana qualify for tax deductions of up to ₹1.5 lakh under Section 80C of the Income Tax Act.

NPS provides an additional tax advantage. Investors can claim an extra deduction of up to ₹50,000 under Section 80CCD(1B) for contributions made to the pension scheme.

These tax benefits make the schemes attractive not only for savings but also for reducing overall tax liability.

Do Not Miss the March 31 Deadline

With the financial year ending soon, investors who have not yet deposited the required minimum amount in their PPF, NPS, or Sukanya Samriddhi accounts should complete the contribution before March 31, 2026.

Meeting this deadline will ensure that the account remains active and continues to deliver its financial and tax benefits without interruption. Missing the deadline could result in penalties and additional steps to reactivate the account later.

For investors relying on these schemes for long-term wealth creation and tax planning, taking timely action before the financial year closes is highly recommended.