NPS is one of the great ways to save for your retirement corpus in India. NPS is attractive because it also provides an additional tax benefit of Rs.50,000 per annum. This additional tax benefit is a big advantage for anyone who is looking to save for their retirement corpus. NPS is regulated by PFRDA under Government of India.
Pension Fund Regulatory Development Authority has recently introduced 2 models under the NPS system:
- All citizen model: This scheme is open to all citizens of India
- NPS for corporate: This scheme is open to employees of corporate
“All Citizen Model” is open to all Citizens of India and NRI’s between the age group of 18 to 60. Under NPS, two types of Tiers are available to the subscribers – Tier I and Tier II. The contributions in Tier I account are savings for retirement and are non-withdrawal. Tier II account is a voluntary saving account and you can freely withdraw amount.
Opening NPS has become easy and simple, now you can open Individual pension account (only Tier I or Tier I & Tier II) online using eNPS system, which is managed by National Pension System Trust. They recently started this online registration as a pilot phase.
These are 5 simple steps to open National pension scheme (NPS) online using e-NPS
Step 1: Open NPS using the new e-NPS system online and need to complete your KYC using your Aadhaar through OTP authentication, One Time Password (OTP) authentication will be sent to the mobile number registered with the Aadhaar (Aadhaar card is a must for opening for e-NPS account online).
Step 2: Subscriber’s details will be obtained from Aadhaar database including photograph and this will be populated in a online form. Next, you need to scan and upload your signature as part of registration process. You also have the option to replace your photo fetched from Aadhaar system.
Step 3: Next, applicant will be directed to a payment gateway where he/she can make an initial payment to open the account. The initial payment will be minimum of Rs. 500. Payment can be made through internet banking or debit/credit card. Once the initial payment is success, a PRAN (Permanent Retirement Account Number) will be allotted to you.
Step 4: Once your account opening process completed, PRAN kit containing a “PRAN Card”, “IPIN/TPIN”, “Scheme Information Booklet”, “Subscriber Master Report” along with a welcome letter will be sent to your registered address.
Step 5: You need to take a printout, sign the form and paste your photograph and sent to the CRA address within 180 days from the date of allotment of PRAN or your PRAN will be ‘frozen’ temporarily.
If you have any doubts regarding eNPS, kindly leave your comments. We would try our level best to address those.