National Pension Scheme (NPS) India is a voluntary and long-term investment plan for retirement under the purview of the Pension Fund Regulatory and Development Authority (PFRDA) and the Central Government.Applicants can open NPS accounts both online and offline.
The NPS scheme holds immense value for anyone who works in the private sector and requires a regular pension after retirement. The scheme is portable across jobs and locations, with tax benefits under Section 80C and Section 80CCD.
To open an NPS account offline, one must do the following:
Visit the nearest branch of Point of Presence-Service Providers (POP-SP) such as banks
Duly fill the offline application form available at POP-SP
Attach the requisite documents with the application form and submit
Invest the amount you would like periodically
To open an NPS account online, one must do the following:
Log onto the eNPS website and navigate to the registration section
Enter all the requested information and authenticate with the OTP sent on the mobile
Select the preferred account type; under this, you must choose ‘Tier 1’. You should note that you cannot open a Tier II account without having a Tier 1 account already.
Select the fund manager (there are eight fund houses, choose your preferred one)
Select the mode of investment (auto and active modes). Auto mode is the one which allocates and rebalances your portfolio as per the age while the active mode is the one under which you are in charge to choose the assets in your portfolio.
Furnish the details of the nominees and specify their respective share
Upload the requested documents in the prescribed format
Make the initial contribution (Rs. 500) and complete the registration
Your Permanent Retirement Account Number (PRAN) would be generated on completing the registration, store it.
Documents for Registration
You can open an NPS account online by visiting the website of either NSDL or Karvy.
There are the two routes through which you can register yourself for an NPS account - One is Aadhaar-based verification and the other is PAN-based verification.
For Aadhaar-based online registration you have to generate your eKYC file from Aadhaar website. A link to generate it is provided on the NDSL website itself. After your eKYC is submitted, your personal details, available with Aadhaar website UIDAI, like your name, gender, mobile number, address and photograph are automatically fetched. You need to upload the scanned copy of cancelled cheque and photograph online. The facility to register through your Aadhaar number is available only on the website of NSDL.
For the second route you need to have a PAN number. You can apply online for the NPS account using either the NSDL or Karvy website. Under this process your PAN will be verified by any entity of your choice where you have an existing relationship. The entity may be your existing bank or your depository. You may provide details of your bank account number with the name of the bank or you can also choose to get it verified by depository where you have your demat account. Under this process also, you need to upload the scanned copies of your PAN, a cancelled cheque, latest photograph and signature in specified formats.
Comments