Money is often seen as essential support in old age. Having sufficient funds at that stage means you won’t have to rely on others.
This is why the government offers various schemes to help seniors achieve financial stability. One such scheme is the National Pension System (NPS).
Through this government program, you can secure both a lump sum amount and a steady monthly income for yourself in old age.
Money in the NPS is invested in two ways: Tier-1, a retirement account, and Tier-2, a voluntary account.
Upon reaching age 60, you can withdraw 60% of your total NPS investment as a lump sum, while the remaining 40% is allocated to an annuity.
Since this scheme is market-based, the returns vary with market conditions.
If you’re an NPS investor and your account has been frozen, is there a way to reactivate it? Find out here.
Understand why accounts get frozen
To join NPS, you must first open a Tier 1 account. If desired, you can also open a Tier 2 account.
When opening these accounts, a minimum investment of Rs 500 is required for Tier 1 and Rs 1000 for Tier 2.
To keep the accounts active, you must deposit a minimum amount in both accounts every financial year.
Failing to meet the minimum deposit requirement in any year may lead to your NPS account being frozen or inactive.
How to Reactivate a Frozen NPS Account:
1. To reactivate a frozen account, you need to fill out the UOS-S10-A form, available at the post office or the location where your NPS account is managed.
2. Alternatively, you can download the form online by clicking this link: UOS-S10-A Form.
3. Along with the form, attach a copy of the subscriber’s PRAN card. The subscriber must also deposit any outstanding annual contribution and pay a penalty of Rs 100.
4. After submitting the application, the office officials will verify your details. Once processed, your account will be reactivated, and the PRAN will be active again.
