NPS Account Update – NPS Account Frozen? Here’s an Easy Way to Unfreeze it from Home

NPS Account Update: Planning for retirement is considered one of the wisest steps to take in today’s times. The National Pension System (NPS) is a primary option for everyone, from government employees to those working in the private sector. However, due to work commitments, job changes, or family emergencies, people often forget to make their NPS contributions. This leads to the account being frozen, which impacts your retirement fund in the long run.

Why does an NPS account get frozen?

To keep your NPS Tier-1 account active, it is mandatory to invest at least Rs. 500 every financial year. The minimum contribution for the entire year should be Rs. 1,000. If no investment is made for one or two consecutive years, your account is frozen for security reasons.

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How to unfreeze your account online from home

If your account has become inactive, you no longer need to visit the bank or office. You can reactivate it completely online. First, go to the eNPS portal and log in with your PRAN number, date of birth, and password. Upon logging in, you will see an alert for the frozen account. Select the ‘Contribute Now’ or ‘Unfreeze Account’ option.

After this, you will have to pay the outstanding amount and the penalty. As a minimum payment, deposit at least Rs. 500 for that year and pay the penalty for the number of years the account has been frozen. Payment can be made via UPI, net banking, or debit/credit card.

Account frozen due to KYC update

Sometimes, an account is frozen not only due to non-investment but also due to failure to upload KYC documents. If your Aadhaar, PAN, or address is not updated, online payment alone will not be sufficient. In such cases, it is necessary to upload your documents to the portal.

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Ignoring a frozen account will result in losses

A frozen account means you miss out on the benefits of compounding. In NPS, your money is invested for the long term, and the benefit of earning interest on interest is lost. In addition, you also lose out on the tax benefits available under Section 80CCD (1B). Furthermore, the growth of your money, which was being managed by the fund manager, also comes to a halt.

Measures to prevent your account from being frozen again

After reactivating your account, it is essential to invest regularly. Set calendar reminders, enable auto-debit (SIP), and keep your mobile number updated. PFRDA sends alerts via email and SMS, which will notify you in advance if your account is about to be frozen.

A small step, such as paying a nominal penalty of ₹100-₹200 to unfreeze your account, helps protect your retirement fund worth crores of rupees. With the help of digital platforms, you can easily reactivate your account from the comfort of your home and secure your future.