How to Unfreeze an NPS Account?

Why is Your NPS Account Frozen?

Many reasons can lead to a frozen NPS account, which can interrupt your long-term financial plans. Understanding the cause is essential before taking any corrective steps. Most freezes happen due to violations of PFRDA rules or failure to meet CRA requirements. Let us explore the main reasons behind a frozen NPS account.

• Minimum Contribution not Made: When you open a Tier 1 account, you must contribute a minimum of ₹1,000 annually. Missing this requirement causes your account to freeze, and your Tier 2 account, if active, will also become inactive. The CRA will notify you via email in case of non-contribution.
• Non-Submission of Membership Form: Even if you register online, you must submit a physical copy of your NPS membership form to your POP-SP or CRA. If this form isn't received, your account gets frozen.
• KYC Compliance Issues: Failure to submit proper KYC documents or delays in their approval can temporarily freeze your account. Full activation only occurs once your Know Your Customer (KYC) information is approved.

Indicators of Frozen NPS Account

• The first sign that your NPS account is frozen usually appears during an online transaction, where you receive an error message indicating the subscription cannot proceed. While notifications are generally sent beforehand, you might miss them, or they may not be delivered correctly.
• Once you identify the reason, you can take the appropriate steps to reactivate your account. This can be done either online via the eNPS portal or offline by visiting a Point of Presence (POP) centre.

How to Unfreeze an NPS Account Online?

If you prefer convenience, unfreezing your NPS account online is a practical option. Here's how you can do it:

• Go to the official eNPS portal.
• Log in using your PRAN, Date of Birth, and subscriber type.
• Click on ‘Contribution Option'.

• Make a minimum contribution of ₹500.
• Complete the OTP and Captcha verification to submit.
• Once the transaction is verified, you'll receive a confirmation by email.
• This confirms your account has been successfully unfrozen.

How to Unfreeze an NPS Account Offline?

To unfreeze your NPS account offline, visit the POP-SP where you registered for your membership. If that's not possible, you can also find another PPOP-SP nearby to process your unfreeze request. Here are some of the steps to follow:

• You must deposit at least ₹1,000 in a year to keep your NPS Tier 1 account active.
• Fill out Form UOS-S10 and give it to your NPS service provider (POP-SP).
• Attach a copy of your PRAN card.
• Pay the pending minimum contribution (₹500/month) and a ₹100 penalty for each year your account was frozen.
• Pay using cash, cheque, or demand draft with the NPS Contribution Slip.
• Once processed, your account will be reactivated, and you'll get an email confirmation.

How Do You Reactivate the NPS Account?

To unfreeze your NPS (National Pension Scheme) account, follow these steps carefully to complete the verification and reactivation process:

• Sign and affix a photograph on your NPS registration form hard copy.
• Approach the POP-SP with the KYC documents with a verification request.
• Since your NPS account is frozen, you must ensure that the registration form is authorized, signed, and stamped appropriately by the POP official, mentioning the employee ID.
• The POP updates the details in the CRA system, upon which your NPS account is unfrozen.
• A notification in your registered email confirms your NPS account activation.
• Now you are ready to operate your NPS account and start contributing.

Tax Benefit on NPS Contributions

Here's how NPS helps you save on taxes under three sections of the Income Tax Act:

Wrapping Up

Your NPS subscription is important for building a secure retirement and long-term financial stability. Making regular contributions helps your savings grow through smart investments. But if your account gets frozen because of missed payments or incomplete KYC, this growth can stop. It's important to find and fix these problems quickly to avoid delays. Acting fast to unfreeze your account keeps your retirement planning on track and ensures your money keeps growing without interruptions.

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