How to Open an NPS Account Online?

Opening an NPS (National Pension Scheme) account has never been easier, thanks to the digital advancements that allow potential subscribers to initiate and complete the process online. It has made the process seamless, time-saving, and easy.

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What is the National Pension Scheme? (NPS)

The National Pension Scheme (NPS) is a voluntary, long-term retirement savings scheme designed to enable systematic savings. It is an initiative by the Indian government to provide a structured pension solution for Indian citizens. The PFRDA (Pension Fund Regulatory and Development Authority) regulates and manages this scheme. You can also check your returns on NPS by using the NPS calculator that is available online. 

Initially, it was launched only for government employees, but it was subsequently extended to even non-government employees in 2009. Also, being a market-linked product, NPS offers returns based on the performance of the fund.

What are the Types of NPS Accounts?

There are two types of NPS accounts:

  1. Tier I Account

    • The Tier I account is the mandatory pension account.

    • All subscribers must open a Tier I account upon joining the NPS.

    • The account remains locked until retirement.

    • Exceptions exist for unlocking the account in specific cases.

    • After 25 years of service, subscribers can withdraw up to 50% of their contribution.

    • To keep the NPS Tier I account active, a minimum deposit of Rs 1,000 is required annually.

  2. Tier II Account

    • It is a voluntary savings account.

    • Subscribers can open a Tier II account in addition to their Tier I account.

    • An NPS Tier II account can only be opened if one already has an active Tier I account.

    • The minimum contribution for a Tier II account is Rs. 1,000 every year.

    • There is no upper limit on the yearly contribution to a Tier II account.

What is the Difference Between Tier-I and Tier-II Account?

Category NPS Tier-I Account NPS Tier-II Account
Status Default Voluntary
Withdrawals Not permitted till the subscriber reaches 60 years of age Permitted, and you can withdraw money whenever you want
Tax Rebate Up to Rs 1.5 lakh per annum Under 80C of the IT Act, and an additional Rs 50k per annum under 80CCD(1B) of IT Action. These benefits are available on contribution to the scheme No tax benefits are available on contributions in this account.
NPS contribution (Minimum ) Rs 500 or Rs 1,000 per annum Rs 1000 per annum
NPS contribution (Maximum) No limit No limit

What are the Features and Benefits of the NPS Account?

The features and benefits of the National Pension Scheme Account are:

  1. Features:

    • Two Account Types: Tier I (mandatory, restricted withdrawals) and Tier II (voluntary, flexible withdrawals).

    • Investment Choices: Options to select investment avenues and fund managers.

    • Portability: Continuation across jobs and locations.

    • Online Access: Digital management and contribution.

  2. Benefits:

    • Tax Advantages: Deductions under the Income Tax Act.

    • Flexible Contributions: No upper limit for Tier II.

    • Retirement Planning: Structured pension solution for post-retirement.

    • Nominee Benefits: Pension wealth is transferable to the nominee upon death.

Invest & Save upto ₹46,800 per annum in taxInvest & Save upto ₹46,800 per annum in tax

What are the Ways to Open an NPS Account?

Opening an NPS account has been simplified to cater to the digital age, ensuring that individuals can effortlessly secure their retirement. The NPS account offers both online and offline methods of registration, accommodating diverse preferences and ensuring accessibility for all. 

How to Open an NPS Account Online?

NPS Account can be opened in a hassle free manner online in the following way:
Step 1: Visit the eNPS Website

Step 2: Ensure your mobile number, Aadhaar, and Permanent Account Number (PAN) are ready for linkage with the NPS account.

Step 3: An OTP will be sent to your registered mobile number for validation.

Step 4: Follow the online prompts to complete the registration process.

Step 5: After successful registration, you will receive a PRAN (Permanent Retirement Account Number). This PRAN can be used to log in to your NPS account in the future.

How to Open an NPS Account Offline?

Step 1: Go to a bank or post office designated as a Point of Presence (PoP).

Step 2: Obtain the NPS subscriber form and fill it out.

Step 3: Provide photocopies of KYC documents (Aadhaar, PAN, passport, etc.). Existing bank customers can skip this step.

Step 4: Pay a minimum of Rs.500 (excluding tax). Remember, the yearly minimum for Tier I is Rs.1,000. Also, pay the one-time registration fee.

Step 5: Collect your Permanent Retirement Account Number (PRAN) and welcome kit from the PoP.

Step 6: Use the PRAN and password from the kit to access your NPS account on the NSDL NPS portal or through internet banking.

How to Access Your NPS Account for the First Time?

  • Visit NPS Portal.

  • Under 'Additional Services', click on ‘Login with PRAN/IPIN’.

  • Input your User ID, password, and the displayed captcha.

  • Click ‘Submit’.

Forgot Password?

  • Under 'Additional Services', select ‘Click Here’.

  • Choose either ‘Nodal Office’ or ‘via OTP’.

  • If opting for OTP, input the OTP received on your mobile or email, along with your PRAN and date of birth.

  • Set and confirm your new password, enter the captcha, and click ‘Submit’.

Who is the Point of Presence-Service Provider (POP-SP)?

  • Interface: POP-SPs serve as the primary interface for NPS subscribers.

  • Roles: They assist in subscriber registration, contribution processing, and providing other related services.

  • Entities: Banks, financial institutions, and other entities authorized by the PFRDA function as POP-SPs.

How to Check NPS Account Balance?

You can conveniently view your NPS account balance online. Either sign in on the NPS website or use the NPS app. To log in, you'll need your PRAN and the associated password.

How to Check NPS Account Statements? 

  • Log into your NPS account to view statements.

  • Access a comprehensive summary of transactions and NPS holdings.

  • Navigate to the 'Transaction Statement' section.

  • Use links to 'Holding Statement' and 'Transaction Statement' for downloads.

  • Digital copies of NPS Tier 1 and Tier 2 accounts are emailed to you.

  • Receive digital NPS statements at your registered email periodically.

What are the Benefits of Using Aadhaar to Open an NPS Account?

  • Easy Submission: Download and submit the NPS form via the CRA portal of PFRDA.

  • No Paperwork: With Aadhaar authentication and e-Signature, there's no need for a physical copy.

  • POP Assistance: Seek help from a Point of Presence (POP) during online form filling. Many NPS-registered banks act as POPs.

  • Nominal E-signature Fee: POPs may charge a small fee for e-signature services, capped at Rs.5 + GST.

  • OTP Verification: An OTP is sent to applicants' mobiles for e-signature verification.

  • Efficiency: The process reduces time, costs, and documentation for both parties.

What is the Process to Close an NPS Account?

  • NPS account closure arises in three scenarios: premature exit, death, or retirement.

  • Submit the appropriate NPS withdrawal form with the necessary documents for each case.

  • Types of NPS withdrawal forms:

    • For premature exit.

    • For normal superannuation (retirement) or incapacitation.

    • For subscriber's demise.

  • Online NPS account holders have an added option to close the account digitally.

  • Track the closure request using a claim ID.

Situations: 

NPS Tier 1 account:

  • Cannot withdraw the entire amount in most situations.

  • Mandatory to convert a portion to annuities, with the rest as a lump sum.

NPS Tier 2 account:

  • Can withdraw the full amount.

What is the Process to Unfreeze an NPS Account? 

  • Reason for Freezing: NPS account freezes if the required Tier 1 payment (currently Rs.1,000/year) isn't made.

  • Penalty Fee: Pay a penalty of Rs.500 to unfreeze the account.

    • Offline Unfreezing:

      • Visit a registered POP-SP.

      • Submit an NPS Contribution Instruction Slip (NCIS).

      • Fill out PRAN and payment details (cheque/DD number) in the NCIS.

      • Provide cheque/DD named ‘POP Collection Account - NPS Trust.’

      • Online Unfreezing:

        • Log into your online NPS account.

        • Pay the penalty fee of Rs.500 using net banking or a debit card.

      • Prevention: Ensure a minimum contribution of Rs.1,000 every fiscal year to avoid freezing in the subsequent year.

What is the Process to Deposit Funds in an NPS Account Online?  

Here's the process to deposit funds in the NPS account online:

Methods to Deposit:

  • NPS mobile app (available for Android and iOS).

  • NPS website.

You can make online contributions to your NPS account via credit card, debit card, or net banking. These online methods are available for funding both Tier 1 and Tier 2 NPS accounts.

FAQ's

  • Which bank is best for opening an NPS account?

    Any bank that is authorized by the Pension Fund Regulatory and Development Authority (PFRDA) to open an NPS account is the best bank for opening an NPS account. You can check the list of authorized banks on the PFRDA website.
  • How can I get 50,000 pension per month in NPS?

    To get a 50,000 pension per month in NPS, you need to invest a corpus of around 10k per month. The exact amount will depend on your age, investment returns, and other factors. You can use an NPS calculator to estimate the corpus you need to invest to achieve your desired pension.
  • Which NPS is better, tier 1 or 2?

    Tier 1 NPS account is better for retirement planning, while Tier 2 NPS account is better for short-term savings. Tier 1 account is locked until retirement, except in certain specific cases, while Tier 2 account is more flexible, and you can withdraw from it at any time.
  • How to start investing in NPS online?

    You can start investing in NPS online by visiting the website of any PFRDA authorized bank or Point of Presence (POP) center. You will need to create an account and provide your personal and financial details. Once your account is created, you can start contributing to your NPS account online.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
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