Investment

If NPS Account Becomes Inactive You Can Revive It This Way

It’s a high probability that your National Pension System or NPS account is frozen if you are not able to log in. But why? It’s because NPS and Permanent Retirement Account Number or PRAN are both managed in such a way that if a subscriber does not contribute a minimum annual amount they will become inactive. Let’s learn how you can reactivate it.

NPS Account Becomes Inactive You Can Revive It This Way

Reactivating Frozen NPS Account

First, as a subscriber, you should know that for Tier 1 NPS accounts you will have to contribute ₹500 as an annual amount and ₹1,000 for Tier 2 NPS accounts. The annual contribution amount has to be paid at the time of registration. And noncontributions towards your account can lead to an inactive account.

Here Are The Steps To Reactivate Or Unfreeze An NPS Account.

Offline Process

In a financial year, an NPS account holder will have to submit a minimum ₹6,000 as a yearly contribution amount to retain the active status. So if your account is blocked due to non-contributions, you can reactivate it by paying a penalty of Rs 100 over the minimum yearly contribution.

Online Process

In the case of e-NPS accounts, you will have to pay the minimum yearly contribution of ₹500 to reactivate it online. You can visit the official website of NPS to clear your payment and gain access to your account.

Penalty Criteria

“The penalty of Rs 100 is applicable to unfreeze Tier 1/Tier 2 or both accounts. Swavalamban subscribers will have to pay an Rs.25 penalty.”

The minimum deposit amounts are:

“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,” mentioned by Times Now.

Also read:

Reserve Bank of India Digital Money: Frequently Asked Questions

Withdrawal Process Of NPS Account When Your PRAN Is Inactive

As per 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.”


Find Your Daily Dose of NEWS and Insights - Follow ViralBake on WhatsApp and Telegram

Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

Related Articles

Back to top button
Close

AdBlocker Detected

Please Disable Adblock To Proceed & Used This Website!