NPS Account : If you do not follow the rules, then there is a risk of your National Pension System (NPS) account being frozen.
NPS Account: The National Pension System (NPS) provides financial security to its subscribers after retirement. But it is also very important to maintain it. Your account can also be frozen due to not fulfilling the minimum contribution or conditions. It is very important to know how to reactivate your NPS account when it is frozen. This is very important to maintain your retirement savings.
Minimum deposit of Rs 1,000 annually required
To maintain an active NPS Tier-I account, a minimum deposit of Rs 1,000 must be made in a financial year. Failure to do so will freeze your account. However, no minimum balance amount is required for Tier-II accounts.
What will happen if the minimum amount is not deposited?
When a customer fails to meet the minimum deposit requirements, the account is first frozen or deactivated. This means that the existing investment continues to generate returns, but the customer is unable to make transactions or additional deposits. This continues until the account is reactivated.
Loss of tax benefits
Closing an NPS account can also lead to the loss of valuable tax benefits associated with NPS contributions. NPS contributions are tax-friendly under Section 80C and 80CCD (1B).
Process to unfreeze NPS account-
Step 1: Visit the official website of NPS https://cra-nsdl.com.
Step 2: Click on the ‘NPS Login’ button and enter your PRAN (Permanent Retirement Account Number) along with your password. If you have forgotten your password, use the ‘Forgot Password’ option to reset it.
Step 3: After logging in, go to the ‘Contribution’ tab.
Step 4: Under the ‘Contribution’ tab, select the option to reactivate your account.
Step 5: Confirm that you are aware of the minimum annual contribution, which is currently Rs 1,000 per financial year.
Step 6: Pay the re-activation fee of Rs 100.
Step 7: Enter the amount and make the payment via net banking, debit card or credit card.
Step 8: Check all the payment details including amount and payment process.
Step 9: Proceed with the payment using OTP verification and CAPTCHA. On success, a confirmation notification will appear.
Step 10: After payment, download the transaction receipt for your records.
Step 11: Your NPS account will be reactivated in a few hours or a few days, and you will get a confirmation via email and SMS.
It is important to keep investing in NPS
Not contributing for even a year can lead to long-term financial problems. This will prevent you from achieving your financial goals after retirement. It is important to keep investing in NPS to build a strong retirement fund. Not contributing may reduce the benefits you get when withdrawing money.
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