The Public Provident Fund (PPF) is a long-term savings scheme in India that requires a minimum annual contribution of ₹500 to maintain an active status. If an investor fails to meet this requirement, the account becomes inactive, and a penalty of ₹50 for each defaulted year is imposed, alongside the need to pay the minimum contributions for those years. For example, a two-year lapse would require a total payment of ₹1,100 to reactivate the account. Despite being inactive, the account continues to earn interest on the existing balance, but no new contributions can be made until it is revived.

The current interest rate for PPF is 7.10% per annum, which has remained steady since April 2020. The scheme is popular due to its tax benefits, as contributions are eligible for deductions under Section 80C of the Income Tax Act, and both interest earned and maturity proceeds are tax-exempt. PPF accounts have a 15-year lock-in period, but investors can make partial withdrawals after five years, allowing access to up to 50% of the balance. Premature closure is permitted under specific circumstances, such as serious illness or higher education needs.