Investing in NPS
Imagine, you deposited money in the National Pension System (NPS) for years for retirement. But when the time came to withdraw money when needed, it was found that your money was not easily available.
Often the reason for this is not bad investment, but small carelessness. Such as incomplete documents, old nominee details, irregularities in KYC or the family not having information about the account. For this reason, NPS money is considered unclaimed or gets stuck in the system.
What is Unclaimed NPS Fund?
Unclaimed NPS does not mean that your money has gone missing. It just means that the money is present in your NPS account, but has not reached the right person or the withdrawal process has not been completed.
This happens when:
- Exit process is not started after retirement
- Withdrawal process abandoned midway
- After the death of the account holder, the family does not have information about the NPS account.
- PRAN number is lost
- There is a mistake in KYC or bank details
Due to which mistakes money gets stuck?
Not updating nominee
Many people do not change the old nominee details even after marriage or change in family. There is difficulty in claiming later.
Difference between KYC and documents
Withdrawal may get stuck if there is a difference in name, date of birth, PAN or bank information.
incomplete withdrawal process
Many people start the process of withdrawing money, but do not submit the required documents or do not do the final confirmation.
Forgetting about opening an account to save tax
Many investors start NPS just to save tax and later stop tracking it.
Does the trapped money keep increasing?
If your money is still invested in NPS and the withdrawal process has not been completed, then you can get returns on it as per the market. However, it depends on what stage your account is in.
It becomes a big problem for the family too
After the death of the account holder, the family does not have information about the PRAN number, bank link or claim process. In such a situation, money can remain stuck in the system for a long time.
How to know if money is stuck?
- Find your PRAN number
- Check whether NPS account is active or not
- Check whether KYC and bank details are updated or not
- The withdrawal process was not left incomplete
How to get money back?
If you are claiming yourself:
- Update KYC
- correct bank details
- Complete all exit formalities
If family or nominee is claiming:
- death certificate
- identity card
- bank details
- Necessary documents have to be submitted
Keep these things in mind
- Always keep nominee details updated
- Give information about NPS investment to the family
- Keep mobile number and email active
- Keep login details safe
- Do not leave the withdrawal process incomplete
Experts say that in most of the cases, money gets stuck not because of wrong investment, but because of carelessness in documents and records.
