National Pension Scheme is a government initiative that started in 2004 to give pensioners market-based returns on investment.
Although it started for government employees only, in 2009 Pension Fund Regulatory and Development Authority (PFRDA) made it available for all Indian citizens.
Even an NRI can open an NPS account. In this article, we are going to discuss how you can open NPS account
Types of NPS Account
NPS offers 2 types of accounts. Tier 1 and tier 2.
Both have their differences with respect to withdrawals from the account.
- In the Tier 1 account, you can not withdraw amount until you retire.
- In Tier 2 account, there is no restriction in place for withdrawals.
You can choose which one suits your needs the most.
How to Open NPS Account Online
The introduction of eNPS has made opening the NPS account online very easy.
Here are the requirements to be able to open an account online
- You should have aadhar card linked with your mobile number and Pan card must be linked with a savings account.
- You can use either Pan or Aadhar to open eNPS account.
- If pan card is used to open account KYC is taken care of by your bank. If Aadhar is used, verification is done via OTP to aadhar linked number.
- Net banking must be enabled for your account before applying for eNPS.
Aadhar based registration is disabled and only pan card can be used to open NPS account for now.
#1. KYC is done by OTP to your Aadhar linked number.
#2. Your personal information and photo from Aadhar database are used to fill NPS form.
#3. Other remaining details need to be filled manually.
For registration, you need to upload a “.jpeg” or “.jpg” file with size between 4kb to 12kb.
(you can use online tools / MS paint to shrink photos to required size)
You need to make a payment of Rs. 500 (Tier 1) or Rs. 1000 (tier 2) upon which you will get a Permanent Retirement Account (PRA) is created and PRAN (Permanent retirement account number) will be given.
Payment to an account can be done through debit/credit card or net banking.
#1. If you are using a pan card, KYC is done by your bank.
#2. Details filled during registration must match the details with the bank. Failure of this may result in the rejection of an application.
#3. You need to upload a scanned photo and signature.
#4. After completion of form fill up, you can use net banking to deposit your first contribution.
Below is the step by step procedure to open an account
#1. Go to eNPS website- https://enps.nsdl.com/eNPS/NationalPensionSystem.html
#2. Click on the national pension system.
#3. On the registration page enter your Pan or Aadhar number and be sure to select a type of account you want to open.
You should also select your bank for KYC authentication.
In case your savings account is not present in the banks mentioned, you can choose from a different point of presence for KYC.
Click on Continue.
#4. On the next page, you need to fill in personal details. And click on generate acknowledgment number.
#5. In the following tabs, you need to fill bank information, nominee information, upload documents, a scanned copy of the photograph as well as signature must be uploaded.
#6. After that, you will be taken to the payment page where you can use net banking or credit/debit card to complete the payment.
#1. As mentioned above, you can get the latest form to open the NPS account from one of the points of presence – service providers (POP-SP).
#2. After filling up the form, submit the form along with copies of KYC documents for verification. Remember to carry originals for verification at POP-SP.
#3. Upon submission of form and payment(initial payment is minimum of Rs 500), you will get a 17 digit receipt number.
You can check the status of your application from this link after a few days.
#4. If the application is accepted and an account is created, you will get Permanent Retirement Account Number (PRAN).
#5. Once PRAN is generated, you can invest more in your account. One time contribution is compulsory in a year but there is no limit on a number of contribution per year.
#6. If you want to contribute to your account, you need to fill and submit the NPS contribution Instruction slip.
If you have opened NPS account offline, you should take the application form print out, attach a photo, and mail it to Central Record Keeping Agency (CRA) office within 90 days of opening the account else.
In the case of account opened through eKYC, the POPs will send the soft copy of the application form to the CRA.
There is no need to physically mail it.
The online opening process is more seamless as compared to offline way.
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