How to Open NPS Account using Aadhar Card or PAN Card
NPS is a prominent saving scheme offered by the government of India. It is open for all citizens from 18 years to 60 years on a voluntary basis. National Pension Scheme is a defined voluntary retirement savings scheme. Learn how to open nps account using important documents like aadhar card or pan card. The national pension scheme is designed by the government to promote retirement saving. This retirement saving scheme is regulated by the Pension Funds Regulatory and Development Authority, also known as PFRDA. With every passing year, the scheme is getting more and more beneficial. This post is presenting a complete guide to open an NPS account online. It is mandatory to have aadhar card or PAN card for opening national pension scheme account.
Online account for the scheme can be opened using multiple online ways. You can open account using PAN details or aadhar card. Since, majority of us are now having aadhar card, we have also written here how to open NPS account using aadhar card details. The amounts invested in this scheme also get a benefit of certain tax exemptions. Till now, only Rs. 50,000 invested in this scheme was allowed to be tax exempted. With this years’ budget, 40% of maturity corpus at the time of retirement will be exempted from income tax.
What is PPS? NPS Tier I and Tier II Structure
Before you open NPS, it is significant to understand certain aspects of the national pension scheme. The national pension scheme offers individuals an option to decide on investment of their fuds. The scheme is structured in two tiers. Tier 1 account is the basic retirement pension account. It does not allow withdrawal of funds before retirement.
The second tier or tier 2 is called PPS or Prospective payment system. The PPS allows withdrawal of pension prior to the age of retirement under exceptional circumstances. Usually, PPS or tier II allows withdrawal for health care provisions.
How to Open NPS Account Online at eNPS.nsdl.com
The first step towards opening national pension scheme account online is registration. Follow the steps given below in sequence.
Register at enps.nsdl.com
- Visit the portal https://enps.nsdl.com/eNPS/LandingPage.html
- Click on the ‘registration’ tab.
- A new page will appear for titled ‘Online Subscriber’s Registration.’
- Select the option of ‘new registration’.
- Select the option of ‘individual subscriber’ if you want to join the scheme as an individual.
- Select the option from ‘citizen of India’ and ‘NRI’.
- Choose the option of Aadhar or PAN number.
- Select the option of Tier I.
Note: Tier I is the mandatory non-withdrawable account for long term savings. Investing in Tier I avails you of tax benefit. Tier II is an add-on account that allows you to invest and withdraw in various NPS saving schemes without exiting from the account.
How to Open NPS Account with Aadhar Card Details
Let’s learn about how to open nps account with aadhar card only.
- After completing registration procedure, enter your aadhar card number
- Click on the button ‘generate OTP’.
- Enter OTP and all other mandatory details asked by the page.
- Most of the details like demographic and photo will be automatically fetched from your aadhar information.
- You will need to fill up your personal details, contact details, bank account and nominee details.
- Upload your signature if required. You can also upload a new photo to replace the photo of aadhar card.
- After fill up all the details click on submit or proceed.
- You will be directed to the payment gateway page. This payment is towards your pension scheme account. You can pay through debit or credit card or internet banking.
How to Open National Pension Scheme Account using PAN Card Details (KYC verification by bank)
- You should have an account with any of the empanelled banks for KYC verification.
- The major banks in the list of empanelled banks are Bank of India, IDBI, Karur Vysya Bank, Bank of Maharashtra, Corporation Bank, Dena Bank, State Bank of India, Vijaya Bank, Union Bank of India.
- Select the bank with which you have an account. Your KYC verification will be done by the selected bank.
- Make sure that the name and address you provide matches with that given to your bank.
- Fill up all the mandatory fields.
- Upload the scanned photo and signature.
- After this, you will be directed to the payment gateway. You need to make a minimum payment towards your NPS account.
After a successful payment and registration process, a PRAN (permanent retirement account number) will be generated for you. You will receive a PRAN kit with PRAN card, IPIN/TPIN number with a letter and booklet. It will be sent to the address provided during online registration. Now complete below formalities.
- Take a print out of the form.
- Paste your photo and sign in the signature block provided in the form.
- No need to sign across the photo
- Send the form to the below address within 90 days from the date of allotment of PRAN:
Central Recordkeeping Agency (eNPS)
NSDL e-Governance Infrastructure Limited
1st Floor, Times tower, Kamala mills compound,
Senapati Bapat Marg, Lower Parel, Mumbai 400 013.
Tel: 022 – 4090 4242
This completes your formalities for opening an NPS account.
National Pension Scheme Contributions
Any person can open only 1 account in this scheme. Contributions need not be made every month. You can remit payment of Rs. 500 per transaction. Every subscriber has to contribute minimum Rs. 6000 per year. A person can contribute to the account till the age of 60.
www.epfbalancestatus.co.in offers all information on employee’s provident fund. Refer our site to check your EPF balance and PF claims status. The information is useful for employees as well employers. The national pension scheme is a powerful retirement scheme launched by the government in 2009. By now, you know how to open nps account using your pan card or aadhar card. In case if you you do not have them, then it is necessary to get them.Pan card is a mandatory document while opening a bank account. It offers individuals and NRIs to manage their own pension account voluntarily. The tax benefits are also associated with NPS to make the scheme lucrative. We would love to have your comments related to EPF and national pension scheme. Keep visiting and sharing us.