NPS Account

A Quick Overview of NPS Accounts

An NPS account is the personal account through which a subscriber builds a pension under the National Pension System. Under the National Pension Scheme, contributions are invested in asset classes such as equity, corporate bonds and government securities, depending on the applicable scheme and the subscriber’s selected investment option. Alternative assets may also be available under eligible investment options.

At normal exit, eligible non-government subscribers can generally withdraw up to 80% of their accumulated pension wealth as a lump sum and use at least 20% to purchase an annuity plan. Different limits apply to premature exits, and subscribers with smaller corpus amounts may qualify for full lump-sum withdrawals or other permitted payout options under the applicable rules.

Types of NPS Account

A subscriber can hold two accounts under one PRAN. NPS Tier I Account is the retirement account, and NPS Tier II Account is an optional account that requires an active Tier I account.

Key Features of an NPS Account

These features define how an NPS account works in practice.

1. Portability: The PRAN does not change when the subscriber moves to a new employer or city.

2. Flexible contributions: Funds can be added as needed, with no upper limit.

3. Charges: Fund management, recordkeeping and Point of Presence charges are deducted from the account, and the current structure is described below.

4. Nomination: The nominee or eligible claimant receives the pension wealth following the subscriber’s death, subject to applicable NPS rules.

5. Online access: Balances, statements and contributions are available through the CRA and eNPS portals.

Eligibility Criteria for an NPS Account

An applicant must meet each of these conditions.

1. Citizenship: Indian citizens who meet the applicable eligibility and KYC requirements may subscribe, including resident and non resident citizens and OCI cardholders. Persons of Indian Origin (PIO) cardholders and Hindu Undivided Families cannot open an account, and NRIs and OCIs cannot activate a Tier II account.

2. Age: 18 to 85 years at the time of application.

3. Capacity: the applicant must be competent to enter a contract under the Indian Contract Act.

4. KYC: the applicant must complete KYC as prescribed by PFRDA.

5. Bank account: the applicant needs a bank account in their own name.

Documents Required to Open an NPS Account

The list depends on whether KYC is done through Aadhaar or through physical proofs.

• With Aadhaar eKYC: Aadhaar details or the offline eKYC file, PAN card, cancelled cheque, a scanned photograph and a scanned signature.
• Without Aadhaar eKYC: identity proof, address proof and date of birth proof, a PAN card, a cancelled cheque, a passport size photograph and a signature.

Offline applications also need self attested copies of the documents.

How to Open an NPS Account

An account can be opened online through eNPS or offline through a Point of Presence (POP). Several banks also offer registration through net banking or their mobile apps.

1. Online Process Through eNPS

   The online route works best for applicants who already have a PAN, a bank account and a mobile number. The steps are as follows.

   1. Open the eNPS website and select new registration.
   2. Choose Tier I, and add Tier II if a flexible account is also needed.
   3. Enter the PAN and bank details, then verify them through the bank account or an Aadhaar based OTP, where available.
   4. Fill in the personal, address, bank and nominee details.
   5. Select the pension fund manager and the investment route, either Active Choice or Auto Choice.
   6. Upload the photograph and signature, then sign the application via eSign or by physical signature.
   7. Pay the onboarding contribution required under the current PFRDA rules and note the PRAN generated after successful registration.

2. Offline Process Through a POP

   The offline method is more appropriate for those applicants who prefer to submit the form physically at the bank branches, post offices or any other Point of Presence. The process is as follows.

   1. The PRAN application form can be picked up either from the Point of Presence or CRA Website.
   2. Filling up of the form is done in respect of personal information, nominee information, preferred schemes and bank information.
   3. Photograph, signature and self attested copies of KYC documents have to be attached.
   4. The applicant then submits the form along with the supporting documents to the POP and retains the receipt number.
   5. The contribution to onboarding must be paid using the Contribution Instruction Slip.
   6. Monitor the application using the receipt number and follow the instructions provided by CRA/PoP to get your PRAN and account information.

Minimum Contribution and Charges at Opening

For Tier I, the minimum contribution at onboarding is ₹250, while subsequent contributions can be as low as ₹10. A separate annual contribution of ₹1,000 is required to keep the account active. For Tier II, Protean CRA guidance specifies ₹1,000 at activation and ₹250 for subsequent contributions.

From 1 October 2026, PFRDA has changed how POP charges work. The one-time onboarding charge is ₹200 per PRAN. A reduced charge of ₹100 may apply to eligible fully digital, non-face-to-face onboarding, subject to PFRDA's applicable conditions. The annual charge of 0.20% of AUM, plus applicable taxes, is deducted through the NAV in accordance with the applicable PFRDA charge schedule.

Subscribers who open the account through eNPS and continue contributing through eNPS or D Remit pay no POP charges, and dormant accounts incur no charges.

Managing an NPS Account

Once the PRAN is generated, the account is managed through the CRA portal. The first login needs the PRAN and the password created at registration.

1. Login and Password Reset

   • Login needs the PRAN, the password and a captcha. A forgotten password can be reset by choosing the OTP option and entering the PRAN and date of birth. Government subscribers can also reset it through the nodal office. Changing the password after the first login is a sensible precaution.

2. Contributing and Checking the Balance

   • Online contributions to Tier I and Tier II can be paid through eNPS by net banking, debit card, credit card or UPI. Offline contributions go through a POP with the contribution instruction slip. Balances and statements are available after login, and the NPS calculator estimates the likely corpus for different contribution amounts.

Unfreezing an NPS Account

Under the All Citizen Model, a Tier I account may be frozen if the required annual minimum contribution of ₹1,000 is not made. The subscriber must follow the applicable CRA procedure to reactivate the account.

To reactivate a frozen account, the subscriber must submit an unfreezing request and pay a minimum contribution of ₹500 and a penalty of ₹100, subject to the applicable unfreezing guidelines. Online, the dues appear after logging in to the CRA or eNPS portal with the PRAN, and they can be paid by net banking, UPI or card. Offline, a reactivation request form is sent to a POP along with a copy of the PRAN card and identity proof.

Closing an NPS Account

An NPS account may be exited on normal exit (through NPS withdrawal), premature exit or the death of the subscriber, subject to the applicable rules. Retirement does not automatically close the account, as eligible subscribers may continue their NPS subscription or defer withdrawal under the applicable provisions. The conditions for NPS premature withdrawal depend on the applicable exit rules.

At exit, the lump sum and annuity requirements depend on the applicable NPS exit rules and the corpus amount. Certain smaller corpus amounts may qualify for full lump sum withdrawal or other permitted payout options. A subscriber can withdraw from Tier II at any time, subject to the applicable account and exit rules.