InvestorQ : What will happen to my withdrawal if my PRAN is in frozen or inactive state at the time of withdrawal?
Neha Samdani made post

What will happen to my withdrawal if my PRAN is in frozen or inactive state at the time of withdrawal?

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simran Kaur answered.
1 year ago
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A subscriber’s NPS account gets frozen if the minimum contribution of Rs 60,000 is not made every financial year.

In order to reactivate the account, an individual must pay the total of minimum contributions for the period the account has remained frozen, the minimum contribution for the year in which the account is reactivated and a penalty of Rs 100.

Thus, to reactivate NPS account = Minimum contributions for duration the account has been frozen + minimum contribution for year in which account is reactivated + Rs 100 (penalty).

If the withdrawal is being done when the account is frozen, the withdrawal will be processed like a normal withdrawal but the penalty that is applicable for unfreezing of such an account without seeking to reactivate the account by the subscriber or payment of amounts necessary to activate the account will be deducted.

Thus, the CRA will unfreeze the account by charging the penalty applicable and process the withdrawal claim.

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