How to Unfreeze an NPS Account: Step-by-Step Guide for Subscribers

[nikhilchauhan]

The National Pension System (NPS) is one of the most popular retirement-saving tools in India. Backed by the Government of India and regulated by the Pension Fund Regulatory and Development Authority (PFRDA), it offers long-term benefits for individuals seeking a stable post-retirement income. However, many subscribers sometimes face the issue of their NPS account getting frozen—usually due to inactivity or non-contribution.

If you’re wondering how to unfreeze an NPS account, this guide will walk you through the process in a simple, clear, and actionable way. We'll also look at why accounts get frozen, what steps you need to take to reactivate them, and the documents required.

What is a Frozen NPS Account?​

A frozen NPS account is an account that becomes inactive or locked due to non-payment of the minimum contribution required in a financial year. According to NPS guidelines, every subscriber must deposit at least:

• ₹500 per year for a Tier I account
• ₹1,000 per year for Tier II (optional)
• A minimum of one contribution per financial year

If this is not done, the account is frozen, and no further contributions, withdrawals, or changes can be made until it's reactivated.

Common Reasons Why NPS Accounts Get Frozen​

Here are the typical reasons for NPS account freeze:

• Missing annual contribution deadline
• Contributing below the minimum required amount
• Technical or bank-related failures during payment
• Incorrect PRAN (Permanent Retirement Account Number) usage
• Change in employment without account update (especially in corporate or government NPS models)

Why It’s Important to Unfreeze Your NPS Account​

Letting your NPS account remain frozen can lead to:

• Loss of opportunity to earn compounding returns
• Delay in retirement planning goals
• Administrative penalties or charges
• Ineligibility for tax benefits under Section 80CCD(1B)

Therefore, it’s crucial to reactivate your NPS account as soon as possible.

How to Unfreeze an NPS Account: Two Easy Methods​

There are two main ways to unfreeze your NPS account:

Method 1: Online Through the CRA (NSDL/KFintech) Portal​

If you're a user of the NSDL CRA or KFintech CRA, follow these steps:

Step 1: Visit the CRA Website​

• NSDL NPS Portal: https://cra-nsdl.com
• KFintech CRA Portal: https://nps.kfintech.com

Step 2: Log In Using PRAN​

• Use your PRAN (Permanent Retirement Account Number) and password
• You can reset your password if forgotten

Step 3: Choose “Contribute Online” or “eNPS”​

• Go to the “Contributions” tab
• Select the minimum required contribution amount
• The system will automatically add ₹100 as a penalty charge

Step 4: Make the Payment​

• Use Net Banking, UPI, Credit Card, or Debit Card
• Once payment is successful, your account will be reactivated

You will receive a confirmation email and SMS once the account is unfrozen.

Method 2: Offline via POP-SP (Point of Presence - Service Provider)​

If you're not comfortable with the online process, visit your nearest POP-SP, such as:

• SBI
• ICICI
• HDFC
• Axis Bank
• Karvy or CAMS

Step-by-Step Offline Process:​

1. Visit the POP-SP office with your PRAN and ID proof.
2. Request and fill out UOS-S10 form (unfreeze request form).
3. Deposit a minimum contribution of ₹500 plus a ₹100 penalty.
4. Submit the filled form and payment receipt.

Your POP will process the request, and your NPS account will be activated in 3–5 working days.

Documents Required to Unfreeze NPS Account​

Whether you go online or offline, here are the key documents you may need:

• PRAN number
• Aadhaar or PAN card (as ID proof)
• Payment receipt or bank confirmation
• Unfreeze request form (UOS-S10) (for offline only)

Charges for Reactivation​

To unfreeze an NPS account, you must pay:

• Minimum contribution: ₹500
• Re-activation penalty: ₹100
• Payment gateway charges (if paying online): Small % extra

This amount is non-refundable but is essential for the reactivation process.

How to Check if Your NPS Account is Frozen​

You can check the status of your NPS account through:

1. CRA login portal – See if your dashboard shows “Frozen” status.
2. NPS mobile app – Available for both Android and iOS.
3. NSDL/KFintech call center – Use your PRAN to get assistance.
4. Email notifications – CRA generally sends reminders and alerts.

How to Avoid NPS Freeze in the Future​

To prevent your NPS account from getting frozen again:

• Set up auto-debit or standing instruction from your bank account.
• Contribute more than once a year, even if the amount is small.
• Keep an eye on your NPS login portal to track your account status.
• Ensure your contact details are up to date so you never miss a notification.

NPS Tier I vs Tier II: Reactivation Difference​

• Tier I account: Mandatory for all subscribers. Must be unfrozen to continue receiving tax benefits and future pension.
• Tier II account: Optional, works like a savings account. If frozen, simply make a contribution to reactivate it—no penalty is usually applied.

What Happens If You Don’t Unfreeze Your NPS Account?​

• You cannot make further contributions.
• Your existing corpus remains idle, and you lose potential returns.
• You won’t be able to withdraw or manage funds.
• It could affect your long-term retirement planning.
• You may miss out on Section 80CCD tax deductions.

So, it's essential to reactivate your NPS account at the earliest.

Avoiding Future NPS Freeze​

You can prevent your NPS account from freezing again by:

• Setting up auto-debit or standing instruction from your bank account.
• Contribute more than once a year, even if the amount is small.
• Regularly track your account status in the NPS login portal.
• Notify your contact details so that you do not miss important notifications.

Difference Between NPS Tier I and Tier II Reactivation​

• Tier I account: Mandatory for all subscribers. Must be unfrozen to earn continued tax benefits and future pension.
• Tier II account: Optional, works like a savings account. If frozen, merely make a contribution to reactivate it, no penalty is usually applied.

What Happens If You Don't Unfreeze Your NPS Account?​

• Hence, no contribution can be made any further.
• Your existing corpus remains idle, thereby you miss out on potential returns.
• You will be unable to, to either withdrawal or manage funds.
• This might go a long way in hampering your long-term retirement plans.
• You may lose Section 80CCD tax deductions.

Conclusion​

Knowing how to unfreeze an NPS account is vital for anyone looking to secure their retirement savings. The process is fairly simple and can be done either online or by visiting your POP-SP. Make sure to contribute the minimum amount plus the penalty, and your account will be up and running in no time.

Don't let your NPS investments sit idle just because you haven't been able to touch them. Instead, read this guideline to getting back into action and continue building a management pension with India's most trusted pension scheme.