Want to invest in NPS? Here’s how to open an account online, offline
New Delhi: National Pension System (NPS) is a pension launched by the government of India to provide old age security to citizens of India. Any citizen of India between the age of 18 to 65 can open NPS account by visiting any POP-SP. A subscriber can open NPS account online by visiting eNPS website through PAN & Bank details.
What is the National Pension System?
It is a pension cum investment scheme which brings an attractive long term saving avenue to effectively plan your retirement through a safe and regulated market-based return. The Scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA). National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS.
Why should your open NPS Account?
Opening NPS account has its own advantages as compared to other pension product available. Below are few features which make NPS different from others:
- Low-cost product
- Tax breaks for Individuals, Employees and Employers
- Attractive market-linked returns
- Easily portable
- Professionally managed by experienced Pension Funds
- Regulated by PFRDA, a regulator set up through an act of Parliament
Two ways to open NPS account:
1. By visiting POP-SP
Any citizen of India between the age of 18 to 65 can open NPS account by visiting any POP-SP.
2. Through eNPS
The subscriber can open NPS account online by visiting eNPS website through PAN & Bank details.
How to open NPS account:
NPS Registration using PAN (KYC verification by Bank/Non-Bank POP):
1. You must have a ‘Permanent Account Number’ (PAN)
2. Bank / Demat /Folio account details with the empanelled Bank/Non-Bank for KYC verification for subscriber registration through eNPS
3. Your KYC verification will be done by the Bank/Non-Bank POP selected by you during the registration process. Name and address provided during registration should match with POP records for KYC verification. If the details don’t match, the request is liable for rejection. In case of rejection of KYC by the selected POP, the applicant is requested to contact the POP.
4. You need to fill up all the mandatory details online
5. You need to upload a scanned copy of PAN card and Cancelled Cheque in *.jpeg/*.jpg/*.png format having file size between 4KB – 2MB
6. You need to upload your scanned photograph and signature in *.jpeg/*.jpg/*.png format having file size between 4KB – 5MB
7. You will be routed to a payment gateway for making the payment towards your NPS account from Internet Banking
8. Contributions are credited in PRANs on T+2 basis (subject to receipt of clear funds from Payment Gateway Service Provider)
After Permanent Retirement Account Number (PRAN) is allotted, subscriber can use:
Option 1 – eSign
1. Select ‘eSign’ option in the eSign / Print & Courier page
2. OTP for the purpose of authentication will be sent to your mobile number registered with the Aadhaar
3. After Authentication of Aadhaar, the Registration form will be successfully eSigned
4. Once a document is eSigned, you need not send the physical copy of the form to CRA
5. eSign service charges plus taxes applicable is Rs. 25.90 (including UIDAI charge of Rs 20)
Option 2 – Print and Courier
1. Select ‘Print & Courier’ option in the eSign / Print & Courier page
2. You need to take a printout of the form, paste your photograph (please do not sign across the photograph) & affix signature
3. You should sign on the block provided for signature
4. The photograph should not be stapled or clipped to the form
5. The form should be sent within 30 days from the date of allotment of PRAN to CRA at the following address or else the PRAN will be ‘frozen’ temporarily.
It is worth mentioning that opening multiple NPS accounts for an individual is not allowed under NPS. However, an individual can have one account in NPS and another account in Atal Pension Yojna.