However, there can be instances when your NPS account will be frozen due to non-contribution of amount. Here is how you can reactivate or unfreeze an NPS account in such a case.
How to reactivate, unfreeze the account NPS account due to non-payment
In a fiscal year, a subscriber must make a minimum yearly payment of Rs.6000 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.
In the Annexure UOS-S10-A form, which is the required form for unfreezing PRAN, check the boxes labelled “Tier I,” “Tier II,” and “Both (Tier I and Tier II)” accounts.
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 unfrozen. You can contribute to unfreeze the account using any POP-SP (point of purchase service provider) or online through eNPS.
On the E-NPS Portal homepage, click “Contribution.” You can make a contribution on the following page after providing your Permanent Retirement Account Number (PRAN) and birthdate. A confirmation email from the CRA would be provided once the minimum contribution of Rs 500 has been paid, at which point one can make additional contributions to their NPS accounts.
Minimum contribution details
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.”