As the name implies, National Pension Scheme is a most popular retirement scheme. First, it was launched for employees who do receive any kind pension. Later on, it was made accessible to every resident. Pension fund regulatory and development authority (PFRDA) is an autonomous body behind this retirement scheme.
You must pay the contributions on regular basis. This way, you will earn significant interest on accumulated amount. You can enjoy the corpus after turning 60. Interestingly, this scheme lets you invest in share market and bond market. And the best part, you have the option to adjust the percentages of investments in different markets. Either you can appoint the fund manager or do it yourself!
NPS Scheme: PPS Tier I & Tier II
Technically, the National Pension Scheme features three types of accounts:
- Tier I: Under this type, subscribers are not allowed to make withdrawals before retirement. Secondly, all government employees are obliged to invest 10% of their salary towards National pension account.
- Tier II: Under this type, you have complete freedom regarding investments and withdrawals. But you must own a regular Tier I account if you want to enjoy benefits of Tier II.
- Swavalamban Account: We can ignore the efforts of Indian government for encouraging saving spirit among people. Under the type, every subscriber will receive an additional contribution of Rs. 1000 per annum for first four years. This step was taken to empower people with weak economic standing.
Open NPS Account Online Using PAN or Aadhar Card
Any individual residing in India, between 18 – 60 years is eligible to apply for National Pension Scheme. Thanks to authorities, the registration process is easier than ever. One can use the PAN or Aadhar card to complete the registration. You can go for offline or online registration.
Registration At enps.nsdl.com
You can register online for NPS at the official website of NPS trust (enps.nsdl.com). You must arrange following things for online registration:
- Aadhar card or PAN. The Aadhar Card must feature your current mobile number and address. Remember, every detail has to be correct.
- A bank account with internet banking services or credit/debit card.
- A scanned copy of your photograph with size of 4 kb – 12 kb.
Open National Pension Scheme Account With Aadhar Card
Here are the essential steps to complete the registration successfully:
The first Step to open NPS account
First off, please visit the eNPS web page (enps.nsdl.com).
Click on the Registration Button. But you must read the guidelines mentioned on the left side.
The next page will display a lot of option about preferences. You must go through each option and choose wisely.
The first row shows options for New Registration, Complete Pending Application, and Printout of the completed application. If you are a new investor, tap on the first option.
Next, choose the option of Individual Subscriber. For your employees, the option of Corporate Subscriber is there.
Next, you need to pick the account type. In either situation, the registration for Tier I account is compulsory. If you want to withdraw corpus any time, go for Tier II account too.
Next, you have to complete the authentication process. If you have provided the details of Aadhar card, the One Time Password will be forward to your registered mobile number.
Next page asks for your personal details. Most of the details are taken automatically from your Aadhar card. You have to mention your father’s and mother’s name. Also, please mention the mobile number for OPT authentication in future for your NPS account. This page also demands email and PAN ID, etc.
After submitting the data, you will receive the acknowledgment slip. Please save it, as you will need it to access the application.
FInal Step : NPS Account Opening
The next page will receive the contact details from your Aadhar.
Now, you have to provide bank details. The same bank account will be used to pay contributions in future.
Next, you have to provide Nomination details.
At the same page, you must choose fund manager and investment modes (auto or active).
We are almost done, next page will ask for photo and signature. In the case of Aadhar, the system will fetch the photo automatically.
Next, choose the contribution amount. The minimum contribution for Tier I and Tier II are Rs. 500 & Rs. 1000 respectively.
After that, you will reach the payment gateway. The system utilizes the SBI ePay gateway. You must opt for the debit card to avoid transaction charges.
Once payment is done, you will receive the Permanent Retirement Account Number (PRAN).
Next, download the application form. Attach the passport size photo, sign it and send it at the following the address.
Central Recordkeeping Agency (eNPS)
NSDL e-Governance Infrastructure Limited 1st Floor, Times Tower,
Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013
Open NPS Account Using PAN Card
In case you are using PAN Card for registration, the above-cited process will be needed. Just the authentication will be done using your PAN and name of the Bank. Here, Bank will do the KYC in place of you. That’s it!
Did I miss anything on National Pension Scheme
Registration of NPS account is easier than ever. You don’t have to stand in line for hours at NPS offices. Not only registration, but you can also make a contribution via eNPS portal.
Raising Grievances Regarding NPS
Grievances can be raised against NPS if there is an error in the allocation of PRAN or there are certain problems arising in case of withdrawal of funds. While raising a grievance, the individual has to login to the official NPS portal with their ID and password. The grievance can also be submitted physically, but it is best to raise it online for better flexibility. If you are raising a grievance, the NPS site will ask for the appropriate details like the nature of grievance or whether it is a reminder to answer any previously raised query.