Post Office Accounts: Your PPF and Other Accounts Will Be Frozen After 3 Years of Inactivity!
Post Office Accounts: Chakdaha, West Bengal, July 18, 2025: A crucial update has been released for investors in Post Office Small Savings Schemes. The Department of Posts, Government of India, has issued a new order designed to better safeguard your hard-earned money. According to this new regulation, if you do not close your small savings scheme account or extend its tenure within three years of its maturity date, the account will be frozen or made inactive. This measure is primarily being implemented to enhance the security of depositors’ funds and reduce the number of unclaimed accounts. Let’s delve into the details of this new order.
Which Schemes Are Affected by This Rule?
This new directive applies to several popular Post Office Small Savings Schemes. These include:
- Public Provident Fund (PPF)
- Senior Citizen Savings Scheme (SCSS)
- National Savings Certificate (NSC)
- Kisan Vikas Patra (KVP)
- Post Office Monthly Income Scheme (MIS)
- Post Office Time Deposit (TD)
- Post Office Recurring Deposit (RD)
If any of these accounts mature and you fail to either close the account or extend its tenure within the subsequent three years, the Post Office will freeze your account.
Why Was This New Rule Introduced?
According to the Department of Posts, this step is an effort to protect investors’ money. It has often been observed that many investors do not withdraw their funds even long after the maturity date, causing these accounts to lie dormant. Such inactive accounts are more susceptible to the risk of fraud. Therefore, this new rule aims to mitigate that risk and encourage account holders to be more proactive about managing their investments.
Accounts Will Be Frozen Twice a Year
Under the new regulations, the Post Office will identify and freeze such inactive accounts in two cycles each year.
- The first phase will begin on July 1st. Accounts that have completed three years past their maturity date as of June 30th will be identified and frozen.
- The second phase will begin on January 1st. Accounts that have completed three years past their maturity date as of December 31st will be identified and frozen.
What Happens When an Account Is Frozen?
Once your account is frozen, you will not be able to perform any transactions. All activities, including withdrawals, deposits, and access to online services, will be suspended.
How to Reactivate a Frozen Account
If your account becomes inactive, there is no need to panic. You can easily reactivate it by following these steps:
- Visit the Post Office: You must go to your post office branch.
- Submit Necessary Documents: To reactivate the account, you will need to submit several important documents, including:
- The account’s passbook or certificate.
- Your KYC (Know Your Customer) documents, such as your PAN card, Aadhaar card, and mobile number.
- The Account Closure Form (SB-7A).
- Verification Process: The post office will verify the submitted documents to confirm your identity.
- Maturity Amount Credit: Upon successful verification, the entire maturity amount from your account will be credited to your Post Office Savings Account or your bank account.
It is crucial to be aware of this new rule and manage your investments in a timely manner. This will ensure your hard-earned money remains safe and you avoid any unnecessary complications.
