To avoid freezes and maximize your retirement savings, it is recommended that you maintain regular contributions to your NPS account.
PFRDA, the Pension Fund Authority, enforces specific guidelines for maintaining active NPS accounts. Here's why your account may be frozen and how to reactivate it online and offline.
National Pension Scheme (NPS) provides a long-term savings scheme for retirement planning in India. However, for certain reasons, your NPS account may be frozen, limiting further contributions. Common reasons for NPS account suspension include: Here's how to reactivate your account through online and offline processes:
The Pension Fund Regulatory and Development Authority (PFRDA) enforces specific guidelines for maintaining active NPS accounts.
The main reasons your account may be placed on hold are:
Minimum contribution elapsed: Tier 1 NPS account requires a minimum contribution of Rs 1,000 per year. If you do not meet this threshold for one year, your account will be frozen. If Tier 1 is frozen, Tier 2 accounts will also become dormant.
Incomplete KYC verification: NPS systems require Know Your Customer (KYC) verification. Your account may be suspended if any documents you submit during registration are rejected due to missing, inaccurate, or inconsistent information.
Issues submitting registration form: Sometimes, your account may be frozen due to technical glitches or delays in submitting your registration form to the Central Records Agency (CRA).
How to unfreeze your NPS account online
Minimum contribution and penalty settlement: Access the eNPS portal and go to the Contributions section. Contribute at least Rs 500 per month during the period your account is frozen (including the current year). Also settle a fine of Rs 100.
Verification and account revival: Once your online payment is completed, you will receive a confirmation email. PFRDA will review your account and reactivate it within a few business days.
How to unfreeze your NPS account offline
Search and fill out forms: Download form UOS-S10-A from the NPS website or obtain it from your Point of Presence (PoP). Fill up the form thoroughly, attach a copy of your PRAN card and ensure that you can easily secure the required minimum contribution amount (including penalty).
Form submission and contribution: Visit any PoP branch (bank or designated agent) and submit the completed form along with the minimum contribution and penalty amount. PoP will process your request and forward it to PFRDA for verification.
Reactivate your account: PFRDA will verify your application and reactivate your account within a few business days. You will receive notifications via email or SMS.
Things to remember
Online methods are easy to access, but if you have difficulties with the eNPS portal, an offline approach may be necessary. Make sure you have enough funds in your linked bank account to pay the minimum contribution, fines, and processing fees.
To avoid future freezes and maximize your retirement savings, it is recommended that you maintain regular contributions to your NPS account.
By understanding why your NPS account is frozen and implementing the steps outlined above, you can efficiently reactivate your account and resume contributions for a secure retirement.