How To Open National Pension System NPS Account Online – Step by Step Procedure

How To Open National Pension System NPS Account Online – Step by Step Procedure

How to Open National Pension System NPS Account Online explained in Hindi with step by step procedure and live demo.

NPS (National Pension system) is a voluntary contribution retirement savings scheme. The NPS has been designed to provide not only tax benefit but also provides security to your life especially when you are not working in public sector.

You can contribute small amount every month to this NPS scheme and can get pension after your retirement. Basically under NPS an individual’s savings are polled in the pension fund. These funds are invested by PFRDA(Pension fund regulatory and development authority) as per approved investment guidelines in government bonds, bills, shares and debentures.
These contributions grow over the years and the returns you will receive on the interest made in the investments.

National Pension System NPS

You can contribute directly from contribution link of eNPS site or you can opt for ECS service from bank.

At the time of a normal exit from NPS, the subscribers may use the accumulated pension wealth under the scheme either to purchase a life annuity from a PFRDA empanelled life insurance company or withdraw a part of the accumulated pension wealth as lump-sum, if they choose to do so.

National Pension System NPS

 

Eligibility to join this scheme is basically between 18 to 60 years of age including NRIs.

Individuals contributing to NPS would enjoy tax benefits on their contributions as under:

  1. Tax deduction up to 10% of Salary (Basic + DA) under Section 80 CCD(1) within the overall ceiling of 1.5 Lakh under Sec 80 CCE
  2. NPS also reduces your tax liability by an additional deduction of 50,000/- under section 80CCD (1B) p.a. (applicable from FY 2015-16 and onwards)

The additional tax benefit of 50000 is over and above the benefit of 1.5 Lakhs which can be claimed as a deduction under Section 80CCE. Therefore, the total tax benefits that can be claimed for NPS under Section 80CCD(1) + Section 80CCD(1B) equals to 2 Lakhs for this financial year.

 

National Pension System NPS

You can open your account easily by eKYC using aadhaar number.

Banks Supporting NPS

1 Allahabad Bank
2 Andhra Bank
3 Bank of India
4 Bank of Maharashtra
5 Corporation Bank
6 Dena Bank
7 IDBI Bank Limited
8 Indian Bank
9 Kotak Mahindra Bank Limited
10 Oriental Bank of Commerce
11 State Bank of Bikaner & Jaipur
12 State Bank of Hyderabad
13 State Bank of India
14 State Bank of Patiala
15 State Bank of Travancore
16 Syndicate Bank
17 Tamilnad Mercantile Bank Ltd
18 The Karur Vysya Bank
19 The Lakshmi Vilas Bank Limited
20 The South Indian Bank Limited
21 UCO Bank
22 United Bank of India
23 Vijaya Bank

Details to open the NPS account are as follows. Any individual can open a pension account under NPS through eNPS website.

National Pension System NPS

Application form to fill you can get in below location

Option 1 – Registration using Aadhaar

✔ You must have an ‘Aadhaar number’ (with a mobile number registered with Aadhaar)
✔ Your KYC in NPS will be done using Aadhaar through One Time Password (OTP) authentication
✔ OTP for the purpose of authentication will be sent to the mobile number registered with the Aadhaar
✔ Your demographic details and photo will be fetched from Aadhaar database and populated in online form
✔ You need to fill up all the mandatory details online
✔ You would be required to upload your scanned signature (in *.jpeg/*.jpg format having file size between 4kb – 12kb) as part of the registration process
✔ In case, you wish to replace the photo obtained from Aadhaar, you may upload a scanned photograph
✔ You will be routed to a payment gateway for making the payment towards your NPS account from Debit/ Credit card or Internet Banking

Option 2 – Registration using PAN (KYC verification by Bank)

✔ You must have a ‘Permanent Account Number’ (PAN)
✔ Bank account with the empanelled Bank for KYC verification for subscriber registration through eNPS
✔ Your KYC verification will be done by the Bank selected by you during the registration process.Name and address provided during registration should match with bank records for KYC verification. If the detail don’t match , the request is liable for rejection.In case of rejection of KYC by the selected Bank, applicant is requested to contact the Bank
✔ You need to fill up all the mandatory details online
✔ You need to upload your scanned photograph and signature in *.jpeg/*.jpg format having file size between 4kb – 12kb
✔ You will be routed to a payment gateway for making the payment towards your NPS account from Internet Banking
In addition, NRI subscribers should,
✔ Select the Bank Account Status i.e., Non-Repatriable account or Repatriable account
✔ Provide the NRE/NRO bank account details and upload scanned copy of passport
✔ Select the preferred address for communication i.e., Overseas Address or Permanent Address (communication at overseas address would entail extra charges)

After Permanent Retirement Account Number (PRAN) is allotted, subscriber can use one of the following options:

Option 1 – eSign

For Tier I PRANs generated through Aadhaar, you have option to eSign the document by following the below mentioned steps:

✔ Select ‘eSign’ option in the eSign / Print & Courier page
✔ OTP for the purpose of authentication will be sent to your mobile number registered with the Aadhaar
✔ After Authentication of Aadhaar, Registration form will be successfully eSigned
✔ Once a document is eSigned, you need not send the physical copy of form to CRA
✔ eSign charge ₹ 5 plus service tax

Option 2 – Print and Courier

✔ Select ‘Print & Courier’ option in the eSign / Print & Courier page
✔ You need to take a printout of the form, paste your photograph (please do not sign across the photograph) & affix signature
✔ You should sign on the block provided for signature
✔ The photograph should not be stapled or clipped to the form
✔ The form should be sent within 90 days from the date of allotment of PRAN to CRA at the following address or else the PRAN will be ‘frozen’ temporarily

Central Recordkeeping Agency (eNPS)
NSDL e-Governance Infrastructure Limited,
1st Floor, Times Tower,
Kamala Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai – 400 013

Note: Registration for APY can be done through eNPS Website.

National Pension System NPS

Processing of subsequent contribution:

All existing subscribers (registered through both online and offline mode) can contribute in Tier I & Tier II account using ‘eNPS’. To contribute online, you need to

✔ Have an active Tier I / Tier II account
✔ Authenticate your PRAN using the OTP sent to your registered mobile number
✔ Pay through your Debit / Credit card or use Internet Banking option.
✔ POP Service Charges will be applicable on the contribution amount @ 0.05% (subject to minimum of ₹ 5 and maximum of ₹ 5,000 per transaction). This service charges will not be applicable for subscribers registered in eNPS through Aadhaar

Above data has been taken from the eNPS site

Some frequently asked questions link

Some other questions answers related to NPS Withdrawal

For more queries please contact : 022 – 4090 4242

Difference between Tier 1 and Tier 2

Tier I is the mandatory account for long-term savings. Invest in Tier I account to avail exclusive Tax benefit upto Rs.50,000 u/s 80CCD(1B).
Tier II is an add-on account which provides you the flexibility to invest and withdraw from various schemes available in NPS without any exit load.

A subscriber is required to make the first contribution at the time of applying for registration. (Minimum contribution Rs.500 for Tier I and Rs.1000 for Tier II ).

You can use NPS mobile app to see your savings easily from mobile and also to contribute manually in scheme as well.

I have other posts as well related to NPS on different NPS forms, how to contribute money online in NPS, FATCA declaration and on how to login in your NPS account

In my video I have explained all the things related to NPS and how to open the account online step by step. Please watch the complete video for proper understanding.

This Post Has 6 Comments

  1. Dear Sir,
    Is it necessary to invest per month ? what is minimum amount for Tier 1 and for Tier 2 ? how much should be invested to get 50,000 per month ? This points are not covered in video or blog .Please provide me this information

  2. Dear Jayesh,

    Its not mandatory to invest monthly, however you have to pay atleast one time in a year, minimum amount already mentioned in my video if you could please check complete video. However regarding to get 50000 Rs per month, it will depend on your investment and as i have already told in my video you will get 50% money at the age of retirement and rest money will be paid after retirement on yearlly basis, it depends on pension fund managers how these are performing…i hope you would have get your answers

  3. Sir i applied for pran and i got online. When i tried for ipin msg comes your account is frozen . Can you help what should I do now ?

  4. can you please try to reset your ipin and let me know if it does not work, i have another video for it try to see it like how to login in NPS account

  5. Sir
    I am a govt employee and i want to open Enps account
    Do i need to follow the sampe procedure as mentioned by you in your video.
    Or i need to do some more formality?

  6. Government will open your account, please check your HR

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