HI My mother\’s PPF account matured on 31st March, 2017. We didn\’t apply for an extension, nor did we had any communication with the bank in this regard. It is now over an year since the maturity. My query is: Can we still ask the bank for the closure of matured PPF account, and start a fresh account for my her? In case, the PPF a/c has been extended by default for a 5-year block period (without contribution in this case?), then can we still close it and start a new one? Or can we take out the maximum balance and invest it in some other tax saving or income generating instrument (Any suggestions)? My mother is a senior citizen and a family pensioner.
It is by default extended with an option of NO CONTRIBUTION for another 5 years. During this period, you can’t contribute. However, you can change the option as EXTEND WITH CONTRIBUTION by submitting the application within a year of maturity. Do remember that, you must submit the application before the completion of 1 year from the date of maturity.
Hence, you can use this option and continue investing in PPF.