The National Pension System (NPS) offers a long-term savings scheme for retirement planning in India. However, your NPS account might get frozen due to certain reasons, restricting further contributions. Here are the common causes that lead to a frozen NPS account and here is how you can reactivate it through the online and offline processes.
The Pension Fund Regulatory and Development Authority (PFRDA) enforces specific guidelines for maintaining an active NPS account.
Primary reasons why your account might be put on hold:
Minimum Contribution Lapse: Tier 1 NPS accounts necessitate a yearly minimum contribution of Rs 1,000. Falling short of this threshold for a year triggers account freezing. Tier 2 accounts also become dormant if Tier 1 is frozen.
Incomplete KYC Verification: The NPS system mandates KYC (Know Your Customer) verification. Account freezes can occur due to missing or inaccurate documents submitted during registration, or rejections arising from discrepancies.
Enrolment Form Submission Hiccups: Occasionally, technical glitches or delays in submitting the enrollment form to the Central Recordkeeping Agency (CRA) can lead to account freezing.
How To Unfreeze NPS Account Online
Minimum Contribution & Penalty Settlement: Access the eNPS portal and navigate to the contribution section. Make a minimum contribution of Rs 500 per month for the period your account was frozen (including the current year). Additionally, settle the Rs 100 penalty.
Confirmation & Account Revival: Upon successful online payment, you’ll receive confirmation via email. The PFRDA will review your account and reactivate it within a few business days.
How To Unfreeze NPS Account Offline
Form Retrieval & Completion: Download the UOS-S10-A form from the NPS website or acquire it from your Point of Presence (PoP). Fill out the form meticulously, attach a copy of your PRAN card, and ensure you have the required minimum contribution amount (including the penalty) readily available.
Form Submission & Contribution: Visit your PoP branch (bank or designated agency) and submit the completed form along with the minimum contribution and penalty amount. The PoP will process your request and forward it to the PFRDA for verification.
Account Reactivation: The PFRDA will verify your application and reactivate your account within a few business days. You’ll be notified via email or SMS.
Points To Remember
While the online method provides ease of access, the offline approach might be necessary if you encounter difficulties with the eNPS portal. Verify that your linked bank account possesses sufficient funds to cover the minimum contribution, penalty, and any processing fees.
To prevent future freezes and maximize your retirement savings, maintaining regular contributions to your NPS account is highly recommended.
By comprehending the reasons behind a frozen NPS account and implementing the steps outlined above, you can efficiently reactivate your account and resume contributing towards a secure retirement.
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