Opening an account with the National Pension Scheme

National Pension Scheme – how to open an account

Opening an account with the National Pension Scheme is a low-cost and efficient method to accumulate funds for Retirement. The NPS offers multiple fund options from registered Pension Fund Managers and is regulated by the PFRDA. The NPS account holder gets a unique, portable permanent account number to manage his retirement corpus. Benefits under Section 80C of the Income Tax Act apply to subscriptions made to the NPS account.

The account opening process for the National Pension Scheme has been simplified – and one can open an account online as well as offline. It is now very easy to open a NPS account.

The PFRDA, the pension regulatory authority, has accepted PAN and Bank KYC to open new NPS accounts online. Seventeen Banks have enrolled with the National Security Depository (NSDL) for NPS, enabling account holders who have registered their PAN and Aadhaar cards with these banks to apply for an account online. The Aadhaar Card is used as the e-KYC documentation since February 2016.

 

This has made the whole process of account opening for the National Pension Scheme easy to use. One can use their bank KYC with PAN or Aadhaar card for opening an account online on e-NPS.

There are three ways of opening an NPS Account:

1) Online using PAN

2) Online using ADHAAR, and

3) offline.

Opening a NPS Account Online

For opening a new NPS account, start the process by:

Going to www.npstrust.org.in

Click on to e-NPS

Register for the National Pension Scheme, with:

  1. Your PAN number and Bank details
  2. Your Aadhaar card details

In addition, you be required to provide details like

  • bank account details with facility of net banking,
  • email id
  • mobile phone number etc.

Online account opening using Bank and PAN card details is available only for account holders of the 17 banks enrolled with the PFRDA

At the time of subscription, one time authentication fees of up to Rs.125/- is charged for the KYC plus applicable taxes, and debited from the bank account of the applicant (as provided in the registration) by the bank.

The other option is for subscribers to open their account using their Aadhaar number. Upon providing the Aadhaar number an one-time password (OTP) is sent to the Aadhaar registered mobile number. This OTP is required to be input to confirm then registration and is used as an e-KYC.

Once the OTP verification is done, additional details such as the bank account details, e-mail, and other details are required to be completed, and the initial payment made.

A digital photograph is required to be uploaded and signature required at the time of subscription

Once the online application is completed, a printout of the filled NPS form has to be taken and signed physically, with a photograph pasted on the form, and submitted to the CRA within 90 days. If the physical form is not submitted within 90 days the account is suspended.

Offline Process for Opening NPS Account

The offline application is made via licensed intermediaries for the NPS. Many Banks and other intermediaries are registered with the NPS.

The intermediary would assist in completing the documentation and carrying out the KYC process.

The minimum amount for the NPS is Rs. 6,000/- per annum (Rs. 500/- per month)

Once the subscription is completed and the first amount invested, a permanent retirement account number is generated and sent to the subscriber. This unique portable number remains with the applicant under NPS.

The most convenient method is the online process using Aadhaar card.