Facing trouble logging into your NPS account? It’s most likely frozen. Here’s how you can unfreeze it.
The National Pension Scheme or NPS is a wonderful investment plan for your retirement. This government-backed pension scheme is also a great way for both salaried and self-employed individuals to claim tax deductions under Section 80CCD. You can open an NPS account online too.
Additional Reading: NPS Contribution Post Budget 2018: What’s New?
Did your NPS account freeze?
Your NPS account can become inactive or freeze if you do not invest a minimum of Rs. 1,000 during a financial year. To keep your account active, you need to maintain the minimum required balance for the financial year. If you don’t, then you will be informed via email by the National Securities Depositary Limited (NSDL) about your account being frozen.
Previously, the minimum annual contribution for a Tier-1 account was Rs. 6,000. But, this has been reduced to Rs. 1,000 now.
Additional Reading: Is Investing In NPS Worth It?
How to unfreeze your NPS Account
To unfreeze your NPS account, all you need to do is make a minimum contribution of Rs. 500 during the fiscal year. You can make this contribution in two ways, either offline through any POP-SP (Point-of-presence service provider) or online via eNPS.
Unfreezing your NPS account through POP-SP (offline)
To do this, you will have to visit the office of a point-of-presence service provider (POP-SP) as they are your first authorized point of contact as a subscriber to NPS. These branches usually handle all requests pertaining to your NPS account, including withdrawals. To find the location of your nearest POP-SP, you can visit the NSDL website.
Next, in order to reactivate your account, you will have to make a contribution of the minimum sum through the POP-SP. To do that, you need to fill out an NCIS (NPS Contribution Instruction Slip) which contains details of payment such as your PRAN (Permanent Retirement Account Number) etc. You can download the form from the NSDL website.
You can also make your contribution through cheque or DD, which should be drawn in the favour of “POP (Name of the POP) Collection Account – NPS Trust” and crossed account payee. This will be deposited in your account against your PRAN mentioned in the NCIS.
Additional Reading: What Is A PRAN Card And How To Apply For It
Unfreezing your NPS account via eNPS (online)
This is by far the simplest way to unfreeze your NPS account. All you need to do is go online to the eNPS (National Pension System Trust) portal and make your mandatory contribution of Rs. 500 by clicking on the “Contribution” button on the website.
Once your fill in your details like your PRAN and date of birth, you will be taken to the next page to make a contribution. Once the minimum contribution is made, you can then make other contributions to your NPS account.
Additional Reading: Opening An NPS Account Online
Does the concept of investing in NPS seem too tedious to you? Well, don’t get disheartened! There are a bunch of other investments that don’t have exhausting processes. How about Mutual Funds for starters?