Are you facing trouble logging in to your National Pension System (NPS) account online? Probably your account is ‘frozen’. An NPS account and the PRAN (Permanent Retirement Account Number) are designated ‘inactive’ or ‘frozen’ if the subscriber does not invest this minimum annual amount. Follow these steps to reactivate or unfreeze such an account.
A subscriber must pay a minimum initial contribution of Rs 500 for Tier I and Rs 1000 for Tier II at the time of registration, followed by a yearly contribution based on the account to keep the account active. There can be instances when your NPS account will be frozen due to non-contribution of amount.
Know how to reactivate or unfreeze an NPS account:
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Offline method
In a fiscal year, a subscriber must make a minimum yearly payment of Rs 6,000 to his Tier I account, otherwise, the account would be locked. To unfreeze the account, the customer must pay the total of the minimum contributions made during the freeze period, the minimum contribution for the year in which the account is reactivated, and a penalty of Rs 100. To unfreeze an account, the subscriber must go to the Point of Presence (POP) and pay the necessary fees.
Online method
For eNPS accounts, contributions can be made online. When a minimum payment of Rs 500 is made within a fiscal year, the NPS will be reactivated. You can contribute to unfreeze the account using any POP-SP (point of purchase service provider) or online through eNPS.
Penalty
The penalty of Rs 100 is applicable to unfreeze Tier 1/Tier 2 or both accounts. Swavalamban subscribers will have to pay a Rs.25 penalty. The deposit amount required to unfreeze the account is listed below:
For regular accounts: Rs.500/- for the current fiscal year plus a penalty of Rs.100/- for the year(s) of freezing. If the contribution amount is less than the minimum expected amount, the CRA system will reject the contribution during the upload process.
Withdrawal of NPS when PRAN is in frozen or inactive state
According to the NPS FAQ page, “ The withdrawal will be processed like a normal withdrawal but in addition deduct the penalty that is applicable for unfreezing of such an account without seeking to reactivate the account by the subscriber or payment of amounts necessary to activate the account. In essence, the CRA will unfreeze the account by charging the penalty applicable and process the withdrawal claim.
