How to reactivate your frozen NPS account: It is necessary to deposit a minimum amount every year in the National Pension System (NPS) account. If you have not deposited the prescribed amount in any year, then your NPS account can be 'freeze' or 'inactive'. If this happens, you may have to face difficulty in operating the account. But there is no need to worry too much. You can easily reactivate your account by following the correct procedure.
Minimum deposit rules in NPS account
There are two types of NPS accounts – Tier 1 (Tier I) and Tier 2 (Tier II). To subscribe to NPS it is necessary to open a Tier 1 account. After this, if the member wishes, he can also open a Tier 2 account. It is necessary to deposit at least Rs 1000 in a year in a Tier 1 account. At least Rs 500 can be deposited at a time. At the same time, at the time of opening a Tier 2 account, at least Rs 1000 has to be deposited and after that at least Rs 250 has to be deposited at one go. But there is no minimum limit for annual contributions.
When an NPS account be frozen?
If a subscriber does not deposit the minimum deposit amount in his Tier 1 account of NPS during the entire year, then his account gets frozen. That is, it is necessary to deposit at least 1000 rupees every year in a Tier 1 account. Failure to do so may result in an account lock or freeze, which you can reactivate by following the correct procedure.
How to restart the NPS account?
In order to reactivate the frozen NPS account due to non-deposit of a minimum amount, the subscriber has to pay a penalty of Rs 100 in addition to the full amount of the annual contribution. To complete this process offline, you will have to go to the Point of Presence (POP) and fill a form and deposit the contribution and penalty money. Here POP means the service provider through whom you opened your NPS account or where you deposit your money in your NPS account.
Online way to reactivate the account
If you had opened your NPS account online and operated it in the same way, then you can also do the work of restarting the frozen account online. For this you have to go to the eNPS portal. Go to the homepage and click on the Contribution page. After this, on the page that will open, you can deposit your outstanding contribution and penalty by giving your Permanent Retirement Account Number (PRAN) and Date of Birth.
How many penalties will have to be paid?
A penalty of Rs 100 has to be paid to restart the frozen account. But the account holders who subscribe under the Swavalamban scheme will have to pay only Rs 25 as a penalty. At the time of re-opening the account, a minimum of Rs 500 has to be deposited for the current year with a penalty of Rs 100. After receiving the email of depositing this money, you can also deposit the remaining amount of your contribution. NPS is such a government scheme, in which you can arrange a good corpus fund along with a pension by making regular investments.
