NPS stands for the National Pension Scheme. What is NPS? It is a government-based retirement savings scheme that Indians can use to accumulate funds and build a secure future. Apart from being a robust investment option, NPS is also a tax-saving scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). You can save money regularly by opening an NPS account and watching it grow over time.
Opening an NPS account is simpler now than ever. Here is a stepwise guide to open NPS account online.
Eligibility and Requirements to Open an NPS Account
You must meet certain eligibility conditions to open an NPS Account online. Firstly, you must be an Indian citizen under the age bracket of 18 to 70. Non-resident Indians (NRIs) can also apply if they fulfil the eligibility criteria. Other prerequisites to open an NPS account include a PAN card and an active bank account to facilitate NPS-related transactions.
Required Documents to Open an NPS Account
You will need the following documents to open an NPS account online:
Photograph: Recent coloured passport-sized photo
Identity Proof: Voter ID, passport, driving license, Aadhaar card
Address Proof: Rental agreement, utility bill, property papers
Self-attested copy of PAN card
Bank certificate or cancelled cheque leaf mentioning your name, bank IFSC code, and account number
Additional documents for NRIs include a work permit, valid visa, overseas citizenship proof, etc.
Steps to Open an NPS Account Online
Opening the NPS account via the NPS website is a quick and straightforward process that lets you plan for retirement efficiently and securely. Here is a comprehensive guide with step-by-step instructions:
To begin the NPS account opening journey, visit the official eNPS Website at https://enps.nsdl.com/eNPS/NationalPensionSystem.html.
Log in to the eNPS website and choose NPS > Registration > Individual.
Enter PAN and other information like age, name, address, phone number, and email address.
Enter the OTP received on your mobile number to verify your PAN.
Choose your preferred type of account. Initially, you can open a Tier 1 account only. However, if you are an existing Tier 1 account holder, you can opt to open a Tier 2 account.
In the next step, you must choose a pension fund manager who manages your contributions to the NPS account. Out of the eight fund houses, you must select your preferred PFM from the provided list.
Choose your investment mode. The two investment modes in the NPS account are auto and active. In auto mode, equity allocation is automatic based on age and other factors. In active mode, you can control your equity allocation and decide how to split it among different fund classes, including equities, government debt funds, and corporate funds.
Assign a nominee by mentioning their details. The nominee is the person who will receive your accumulated corpus in the event of your death. You may also share the wealth among multiple nominees.
Upload scanned copies of the required documents, including your PAN card, digital signature, and passport-size photograph. Ensure that the documents you upload are jpeg in format and small in size.
To complete the registration process, make an initial contribution to the NPS account using your debit card, credit card, net banking, or another acceptable medium. The minimum contribution amount is Rs. 500 for a Tier 1 account and Rs. 1,000 for a Tier 2 account.
The system will generate a Permanent Retirement Account Number (PRAN), and you will receive a PRAN kit containing your PRAN card and scheme documents.
You will receive an auto-filled copy of the registration form, which you must download and print. Attach the required documents with this form and email it to the Central Recordkeeping Agency (CRA) within 90 days of opening the NPS account to complete the registration process. Failure to do so will freeze your NPS account.
NPS, or National Pension System, is a voluntary retirement savings scheme that enables subscribers to inculcate a habit of regular investment and build a corpus for a safe retirement. Once you open NPS account online, make subsequent contributions to build your retirement wealth over time. For further queries, contact your nearest POP, like Kotak Mahindra Bank.
