How to Open an NPS Account?

The Buyt Desk

NPS (National Pension Scheme) provides pension after you retire. It allows you to create a retirement corpus. The funds in the NPS account are invested in the asset classes – equity, corporate debt, and Government securities. The investment approach can be conservative, moderate, and aggressive depending on the percentage investment in equity. You can either choose a fund manager to invest on your behalf or choose to manage the investment yourself.

Requirements to subscribe to the NPS scheme

Before opening an NPS account, ensure that you have:

• A PAN card,

• A bank account with a net banking facility,

• Mobile number registered with your Aadhaar card,

• Scanned copy of your signature and PAN card,

• Scanned photograph.

You can subscribe to the NPS through the POP (Points of Presence) or through the eNPS website. There are 42 banks on the list of accepted POPs.

1. Registration through POPs:

You can visit either the POP-Service Provider (POP-SP) or the website of the POP to register for an NPS account. The KYC for the NPS account is verified by the bank. Thus, you should have submitted KYC documents such as proof of identity and proof of address with the bank.

To subscribe, fill the Permanent Retirement Account Number (PRAN) application form online or offline with the POP. The mandatory details should be complete. You will also upload the scanned copy of your signature, and your photograph. In case you do not use eSign, then print the filled PRAN application form. Sign in the box at the end of the application and paste your photograph. Submit the form to the nearest branch of POP-SP.

After submission of the form, you will receive the receipt number. You can use this number to track your PRAN application at https://cra-nsdl.com/CRA/pranCardStatusInput.do. The bank will send the PRAN card by post. You can contribute towards the NPS account only after KYC verification and activation of the PRAN.

2. Registration through the eNPS website:

You can subscribe to the NPS scheme on the eNPS website (https://enps.nsdl.com/eNPS/OnlineSubscriberRegistration.html?appType=main) through the PAN card or the Aadhaar card. You will upload the scanned copy of the PAN card and enter the name of the POP. A small subscription fee with be deducted from your bank account.

In case you use the Aadhaar card for opening the NPS account, upload the Aadhaar Paperless Offline e-KYC Zip file. You can download the file from the website of UIDAI (https://resident.uidai.gov.in/offline-kyc). Also, in the PRAN registration application form, enter the Share code provided by the UIDAI website. The mandatory details, such as the photograph, will be extracted and entered into the form directly from the ZIP file.

If you cannot eSign the online PRAN registration form, you can take a print of the form. Sign the form in the block at the end of the application form and paste the photograph. You can courier the form to the Central Recordkeeping Agency (CRA), Mumbai within 30 days of allotment of PRAN.

The contributions to the NPS account can be made through internet banking, debit or credit card, and UPI. POP service charges apply to every transaction at the rate of 0.10% of the contribution amount. However, the service charge cannot exceed Rs.10, 000 per transaction. Registration made through the eNPS website does not accrue a service charge.