Tipping point

What if a National Pension System (NPS) subscriber stops investing without paying the minimum amount?
The subscriber will have to bear a default penalty of Rs 100 a year, and the account would become dormant. To reactivate the account, the subscriber has to pay the minimum amount of Rs 6,000, along with the penalty for the dormant period. The dormant account would be closed if the account value falls to zero.

What happens to the investments if one discontinues the scheme?
If a subscriber plans to exit or discontinue NPS before the age of 60, he/she has to compulsorily withdraw up to 20 per cent of the accumulated sum and buy annuity with the remaining money. If the subscriber dies before 60, the entire sum goes to the nominee.