If an account holder does not deposit his/her contribution, even if its just the minimum amount of Rs.500, then the account will become inactive.

If the account holder wants to reactive the account, then he/she will have to pay a penalty pf Rs.50 per year for the number of years the account has been inactive along with a minimum contribution of Rs.500 per year.

Any account holder will not be eligible for loans or withdrawals till the time the account remains inactive. However, its noteworthy that the account will be eligible to receive interest as per the prevailing rate.