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How To Open An NPS Account?

The National Pension System (NPS) is a social security scheme for people aged 18-70

Outlook Money
November 22, 2023
National Pension System (NPS)

National Pension System (NPS)

The National Pension System (NPS) account can be opened by anybody between 18 and 70 years of age, whether they are government or private sector employees or self-employed persons. NPS invests money in equity and debt instruments and is managed by impaneled fund manager organizations. After maturity, the subscriber can withdraw up to 60 percent of the corpus accumulated, and the remaining 40 percent is invested in an annuity plan.

The investments in NPS get tax benefits up to Rs 1.5 lakh under section 80CCD (1) and an additional Rs 50,000 under section 80CCD (1B) under the old tax regime. In the new tax regime, these benefits do not exist. However, for retirement planning, NPS offers “auto” and “active” choices for managing the portfolio while providing flexibility in contributions and security as NPS follows stringent regulations.

An NPS account can be opened through online and offline modes. Let’s explore how one can open an NPS account.

How To Open An NPS Account Online: 

Let us see how to open an NPS account online through eNPS.

Step 1: Visit the portal and click on ‘National Pension System’ and then on ‘Registration.’

Step 2: A new screen will open, ‘Online Subscriber Registration.’ You may register with your PAN, Aadhaar, or bank details or through Digilocker.

Step 3: Fill out the KYC and all the mandatory details (ID proof, photo, and personal information) in the online form and click the ‘Generate Acknowledgment Number’.

Step 4: The acknowledgment number will be generated. (At this step, if you want to hold and register later, you may record the acknowledgment number safely somewhere and return later to complete the registration.)

Step 5: Next, you must upload scanned copies of the PAN card and a canceled cheque, a jpeg/jpg/png file of 4KB to 2MB in size. Also, upload your scanned photograph and signature, sized within 4KB to 5MB.

Step 6: Once the details are submitted, the payment gateway will open to make the payment.

Step 7: After that, the online Permanent Retirement Account Number (PRAN) form will open with pre-filled information such as date of birth, address, etc. Check and fill out the other details required in the PRAN form. PRAN number is generated.

Step 8: Enter the OTP received on the mobile number or email for digital authentication. The NPS account opening process is complete.

Though online NPS account opening is easier, if one feels comfortable doing it offline, opening an NPS account with a point of presence service provider (POP-SP), such as a bank or post office, is possible.

How To Open Account Offline: 

Step 1: First, take the NPS account opening form (PRAN form) from the PoP where you want to open the account. Fill up the form.

Step 2: Attach all the documents asked for in the form, including KYC and a photograph and sign the form.

Step 3: Recheck the details with the original documents, submit them, and pay the registration amount.

Step 4: The PoP will generate the Permanent Retirement Account Number (PRAN) within a few days and send you the welcome kit. The process is complete, and the account is opened. The kit will contain the PRAN and the password with which you can access the account online.

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