How to Open NPS Account using PAN Card
The National Pension Scheme is designed by the government to ensure systematic retirement saving. The NPS ensures that a personlives with honour with financial independence. It is solely managed by the pension funds regulatory and development authority.
In this post, you will know all necessary information to open an NPS account. This pension scheme is very low cost and tax-efficient. It offers a very flexible retirement saving account for any citizen. An employee as well an employer can contribute to the account. The benefit that is available at the time of termination depends on the contribution. The greater the contribution, the greater the investment and long term benefit.
Subscription to NPS is entirely independent. You can invest in it regardless of your contributions to another provident fund. The account of a national pension scheme can be operated from anywhere in India. Before you subscribe for the pension scheme, discover all the benefits it offers. We have discussed the scheme in details with procedures of subscription. This scheme is an important saving scheme open for any person from 18 to 60 years. You can open NPS account using your PAN or aadhar card. Users can now subscribe online. You will also understand the tax exemptions associated with national pension scheme.
What is PPS: NPS Tier I -Tier II Structure
Once you subscriber for NPS, you will be eligible for PRAN. Your PRAN will give you access to both the personal accounts at Tier I and Tier II.
Tier I account is a non-withdrawable and aimed for savings for retirement. Tax exemption is available on Tier I account.
Tier II account is a flexible voluntary saving facility. The subscriber can withdraw savings from Tier II account at any time. There is no tax benefit on this account. The Tier II account is called PPS. PPS is a prospective payment system. It allows withdrawal before the age of retirement for health care. You withdraw without exiting the account.
How to Open National Pension Scheme Account
Opening NPS account is quite simple. First of all, you need to have PAN or aadhar card. Here the procedure to subscribe for the national pension scheme.
Registration at enps.nsdl.com
- Click here:https://enps.nsdl.com/eNPS/LandingPage.html
- Click the ‘registration’ tab.
- You will get a new page with title ‘Online Subscriber’s Registration.’
- Select the tab for ‘new registration’.
- Opt for ‘individual subscriber’ if you are joining as an individual.
- Choose the option from ‘citizen of India’ and ‘NRI’.
- Choose the option of using your Aadhar or PAN number.
- Select Tier I account.
Open NPS Account with Aadhar Card
- Complete the registration and type your aadhar card number
- Click for ‘generate OTP’.
- Enter all details with OTP received on your mobile.
- The system will fetch most of the details from your aadhar information.
- Fill up details of your bank account and nominee.
- Upload signature and photo. If you do not upload a photo, the photo will be fetched from your aadhar card.
- Click the submit or finish tab and reach the payment gateway.
- Pay your first contribution through debit/credit card or internet banking.
Open National Pension Scheme Account using PAN Details (KYC verification by bank)
- You should have an account with any NPS empanelled banks.
- The major banks listed with national pension scheme are:
- Bank of India
- Union Bank of India
- State Bank of India
- Vijaya Bank
- KarurVysya Bank
- Dena bank
- Bank of Maharashtra
- Corporation Bank
- Choose the bank and your KYC details will be verified through your bank account.
- Details provided during registration should be matching with that of your bank account
- Fill up all details, upload photo, and upload your signature.
- Make payment of the minimum amount required for NPS account.
Upon successful payment, you will generate a PRAN. PRAN is a permanent retirement account number. Within few days you will get a PRAN kit. It will have your PRAN card and IPIN or TPIN with booklet.
Follow formalities are also part of the national pension scheme subscription process.
- Get a print out of the form you filled up.
- Paste your photo and sign the form.
- Don’t sign across your photograph.
- Now send this form to the below address. See that it reaches there within 90 days (from the date of generation of PRAN):
Central Recordkeeping Agency (eNPS)
NSDL e-Governance Infrastructure Limited
1stFl, Times tower, Kamala mills compound,
SenapatiBapat Marg, Lower Parel, Mumbai – 13.
Tel: 4090 4242
Email address: eNPS@nsdl.co.in
That is how you can open an account with the national pension scheme.
The national pension scheme is a great way for definite retirement savings. It provides financial stability to the workers of unorganized sectors too. A person has a regular source of income after age or retirement. A subscriber pays minimum Rs. 6000 per year for tier I account for a single financial year. If you are a member of employees provident fund, you can also check EPF rules on our blog. Know how to check PF status and PF withdrawal status.