A Detalied Guide On How To Unfreeze NPS Account?

NPS (National Pension Scheme) is a well-known retirement benefit system in India. If you start investing in NPS during your early career, you will need proper investment planning as you have to contribute a minimum amount regularly. If you do not meet the minimum requirements or submit the wrong documents, your NPS account can be frozen indefinitely. 

Are you not able to log into your NPS account? If yes, the possible reason is your account is frozen. Continue reading this blog to learn how to unfreeze an NPS account, why your account could be frozen, tips to prevent this and more. 

Reasons for NPS Account Freezing

Freezing of an NPS account occurs when the subscriber fails to make the minimum annual contribution of ₹1,000 in a financial year. In such cases, the PRAN (Permanent Retirement Account Number) becomes inactive, and no transactions can be made until the required contribution is paid to reactivate the account.

Consequences of NPS Account Freezing

There will be limited or no access to the funds that are accumulated in your NPS account. It could also result in deactivation of your account resulting in loss of the accumulated funds in your NPS account.

How to Check If Your NPS Account is Frozen?

Before proceeding to unfreeze your account, you need to make sure it's frozen or has become inactive. Before this happens, you will receive several warnings. 

You would have received a message stating that you are not eligible for making contributions to your subscription. you may also receive an email from PFRDA informing you that your NPS account has been frozen. 

How to Unfreeze an NPS Account Online?

Opting to unfreeze the NPS account online is probably the simplest way. Digital platforms are a convenient way to carry out things hassle-free. Follow the below mentioned steps and learn how to activate a frozen NPS account online:

Step 1: Visit the eNPS portal and enter valid credentials to log in to your NPS account.

Step 2: Click on the ‘Contribution’ option located on the top menu.

Step 3: Enter all mandatory details such as PRAN details, type of NPS subscriber and date of birth.

Step 4: Initiate the minimum contribution of Rs. 1000 on the following page.

Step 5: You will receive an OTP. Enter the OTP and security to submit your application.

Step 6: You will receive a confirmation of your payment and the same will be notified also at your registered email ID.

The account will thereafter unfreeze successfully and you can start making contributions henceforth for your retirement planning. 

How to Unfreeze NPS Account Offline?

POP-SP entities located all over India undertake the process of unfreezing NPS accounts offline. Locate the nearest POP-SP in your area to ease your unfreezing.  

Below are the various solutions that will help you to understand how to unlock your NPS account offline:

• Minimum Contribution: Every individual must make a minimum deposit of Rs. 1,000 at least once in a financial year. Fill out the PFRDA unfreeze request Form UOS-S10 and submit the same to the representative at the POP-SP. Here are the important points you need to remember while making the minimum contribution:
  • Along with the form attach a copy of your PRAN card.
  • Deposit a minimum amount of Rs. 500/month with a penalty of Rs. 100 over the period of frozen account.
  • You can submit the contribution amount via cash, cheque or a demand draft using the NPS Contribution Instruction Slip (NCIS).
  • The amount gets credited to your account via the POP-SP and the outcome is uploaded into the CRA system.
  • CRA is solely responsible for freezing and unfreezing NPS accounts.

Once approved, your NPS account will be activated. An activation intimation email will be transmitted to your registered email. 

• Pending KYC Compliance: As an NPS subscriber, it is mandatory to submit all relevant KYC documents. At times, even though complying with the KYC norms, verification is delayed at the POP-SP. For this, your NPS account status stays inactive. Henceforth, you must follow up with the POP-SP to unfreeze your NPS account sooner.
• Membership Form Submission: Your NPS account may get inactivated because of non-submission of the NPS form. So, you must comply with this requirement. It is mandatory to fill up the membership form and make it reach the CRA to activate your account, irrespective of whether you have joined the NPS through POP or other intermediaries. Your account will be reactivated within a few days from your submission date of the membership form. 
• Deficient KYC Documents: At times, your KYC documents might leave you unverified while you enrol for NPS membership. The main reason behind this might be the missing or invalid documents. In this scenario, you must take the initiative to find the deficiency and submit all relevant documents to POP-SP. The service provider will verify and unfreeze your NPS account.
• KYC Approval: At times, any intermediary bank might reject all your KYC documents for various reasons. Thus, make sure to submit all valid KYC documents for smooth verification. Once you receive approval of all KYC documents your NPS account will unfreeze.

How Much Time Does It Take to Unfreeze NPS Accounts?

An NPS subscriber must fill up the form and submit it to the POP-SP or the CRA. They will take the initiative to activate your account. The NPS account will unfreeze within a few days from your date of submission of the form.

Penalty for Frozen NPS Account 

The Pension Fund Regulatory and Development Authority (PFRDA) charges a penalty of Rs. 100 for both subscribers belonging to Tier 1 or Tier 2 or both accounts. For regular accounts, the deposit amount required is Rs. 500/month for the current fiscal year along with a penalty of Rs. 100 for the year of your frozen NPS account.

 If the amount of contribution is less than the minimum expected amount, CRA rejects the contribution during the process of uploading. 

Final Words

By now, you must have a clear understanding of how to unfreeze an NPS account. Subscribing to an NPS account fulfils the financial long-term objectives and also helps to secure your retired life. There can be various deficiencies that lead to the inactivation of your NPS account and thereby impact your corpus health. You must identify the reason promptly and find out ways of unfreezing your account. 

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