The NPS is a significant step toward establishing a sustainable and user-friendly retirement savings system in India. Overseen by PFRDA, Its main objectives are clear:

• Ensuring income during retirement
• Obtaining reasonable long-term returns on investments
• Making retirement security accessible to everyone

National Pension Scheme

The National Pension Scheme (NPS), a government initiative in India, offers all citizens a cost-effective and tax-efficient retirement plan. Its goal is to instill a retirement savings habit. NPS pools individual savings into a professional pension fund, allowing individuals to invest for a secure retirement and income at 60. 

Originally for government employees, it's now open to all, featuring a unique Permanent Retirement Account Number (PRAN) for life. Two accounts under PRAN include a withdrawal-restricted Tier-I pension account and a flexible Tier-II savings account.

Benefits of National Pension Scheme

• Regulatory Oversight: PFRDA governs NPS under the PFRDA Act 2013, ensuring a regulated framework.
• Inclusive Pension Scheme: Open to all Indian citizens, regardless of residency or citizenship status, promoting accessibility.
• Cost-Effective Solution: NPS stands out globally for its low-cost structure, making it an economical pension option.
• Flexibility in Choices: Subscribers can choose their Point of Presence, Central Record keeping Agency, Pension Fund, and Asset Allocation, with the option to modify their choices.
• Portability and Accessibility: NPS accounts are easily transferable across jobs and locations, providing convenience. Additionally, online access allows 24/7 monitoring, ensuring transparency.

Ways to unfreeze NPS account

Unfreeze NPS account offline

• Any citizen of India between 18 and 70 can open an NPS account by visiting any POP-SP. Points of Presence (POPs) are organizations registered with the PFRDA to serve as a client interface, including SBI, ICICI Bank, and HDFC Bank. POPs will carry out operations via POP Service Providers (POP-SP), their network of branches.
• Get your Permanent Retirement Account Number (PRAN) application form easily as a subscriber aged 18 to 70. 
• Choose any Point of Presence - Service Provider (POP-SP) for form collection or visit the PFRDA website Ensure the form is completed with your photo, signature, essential details, and scheme preferences. 
• Submit KYC documents for identity and address proof. Refer to the detailed NPS offer document by PFRDA for more information.
• Submit the filled PRAN application to your nearest POP-SP, including the required KYC documents. Your PRAN card will be sent to your address by CRA.
• Keep track of your PRAN application status using the receipt number provided by POP-SP.
• When applying, make your first contribution (minimum Rs 500) to any POP-SP through an NCIS (Instruction Slip).

Unfreeze your NPS account online.

For non-NRI subscribers:

• Ensure you possess a valid 'Permanent Account Number' (PAN).
• Have your Bank/Demat/Folio account details ready for KYC verification with the chosen Bank/Non-Bank during eNPS registration.
• The Bank/Non-Bank POP you select will verify your KYC information. Ensure the details match their records; any discrepancies may lead to rejection. Contact the POP if KYC is rejected.
• Fill in all mandatory details online.
• Upload a scanned copy of your PAN card and Cancelled Cheque in *.jpeg/*.jpg/*.png format (file size: 4KB - 2MB).
• Upload your scanned photograph and signature in *.jpeg/*.jpg/*.png format (4KB - 5MB).
• Make payment through the Internet Banking payment gateway.
• Contributions are credited to PRANs on a T+2 basis (subject to clear funds receipt from the Payment Gateway Service Provider).

For NRI subscribers:

• Choose between Non-Repatriable or Repatriable account status.
• Provide NRE/NRO bank account details and upload a scanned copy of the passport.
• Select the preferred communication address: Overseas or Permanent (additional charges for overseas communication).
• After PRAN allocation, use one of the following options:

eSign

• Choose 'eSign' on the eSign/Print & Courier page.
• Receive OTP on your Aadhaar-linked mobile for authentication.
• After Aadhaar authentication, the registration form is successfully eSigned.
• There is no need to send the physical form to CRA.
• eSign service charges (Rs. 25.90, including UIDAI charge of Rs. 20) apply.

Print and Courier

• Select 'Print & Courier' on the eSign/Print & Courier page.
• Print the form, paste a photograph (unsigned), and affix your signature.
• Sign in the provided signature block.
• Do not staple or clip the picture to the form.
• Send the form to CRA within 30 days of PRAN allotment to avoid temporary freezing.

Penalty of Unfreeze NPS account

The subscriber must deliver a copy of their PRAN card to the related POP-SP and an adequately completed physical application form (Form UOS-S10) in the format specified by PFRDA. For the years when the subscription was frozen, the subscriber was required to pay a penalty of Rs. 100 in addition to the minimum contribution of Rs. 500. You can use the penalty to unfreeze any or both of your Tier 1 or Tier 2 accounts.

NPS Tier one account

NPS Tier 1 accounts allow investments starting at Rs. 1,000 annually. Offering diverse investment choices encompassing equity, corporate bonds, and government securities, NPS ensures flexibility through active and auto-choice options. It grants tax-free returns and benefits under section 80C of the Income Tax Act. With eligibility spanning 18 to 70 years, NPS requires a minimum yearly contribution of Rs.1,000, featuring a lock-in period until age 60. This tax-efficient savings avenue provides substantial benefits and market-linked returns.

NPS tier two account

The National Pension System (NPS) is a vital government initiative to secure investors' interests while providing competitive returns. Among its components, the Tier II account has been accessible to all Indian citizens, including government employees, since December 1, 2009. This account, linked to Tier I, offers flexibility as a withdrawable option, requiring an active Tier I account for eligibility.

NPS Tier 2 serves as an optional savings account and extends tax benefits to government employees under sections 80C and 10(10D) of the Income Tax Act of 1961. This dual feature makes it a comprehensive retirement savings solution.

Conclusion

The way your money is invested under NPS will be up to you. The "Auto Choice" option will invest your money if you choose not to make an asset allocation decision. Point of Presence (POPs), authorized branches of service providers, are where you can open an NPS account. When convenient, you can move from one POP branch to another. 

The Income Tax of 1961, as revised occasionally, will govern the tax benefits NPS offers. Except for the military forces, NPS became required for new hires to the Central Government on January 1, 2004. It superseded the previously defined benefit pension, and nearly all State Governments have since implemented it for their staff members.