Opening a National Pension System account earlier was an arduous process. But, with the introduction of eNPS, opening an online NPS account takes no more than 30 minutes! It has made the process more seamless, time saving, and easy.
eNPS facilitates you in opening a personal Pension account under the NPS scheme.
With e-NPS you can open only a Tier-I account or both Tier-I and Tier-II accounts.
Having an online NPS account makes initial and further contributions to the scheme easy!
Ways to Open an e-NPS Account
If you have a bank account in one of the 17 that are registered at the NSDL (National Securities Depository Ltd), you can easily open a NPS account online.
If your PAN details are linked to your savings account, you can simply log on to the eNPS official website and apply for their online account!
Your bank will take care of the KYC for and processing of your application.
Another way you can open an e-NPS account is if you have a Aadhaar card. The PFRDA (Pension Fund Regulatory Authority) approved Aadhaar as e-KYC on 17th February, 2016.
But it needs to be linked to your mobile and savings account number.
You will then receive an OTP on the registered cellphone number for verification!
Remember to activate your online banking facility before applying for an eNPS account!
How to Open a NPS Account Online
There are two ways you can open your NPS account online.
If you register using your Aadhaar Card
- Your Aadhaar number should be linked to your mobile number.
- The NPS KYC will be done through your registered mobile number by sending an OTP to it for authentication purposes.
- Your data along with the picture will be extracted from the Aadhaar database and used in the NPS online form.
- The rest of the mandatory details have to be completed by you online.
- For registration purposes, upload your signature in a .jpg or .jpeg format. The file should be sized between 4 to 12kb.
- You can replace your Aadhaar picture by uploading a new one in its stead.
- You can then simply make the initial contribution to your e-NPS account through Net Banking or Credit/Debit Card.
If you register using your PAN Card
- In this case, the KYC is taken care of by the bank. That is why your savings account needs to be in an NSDL empanelled bank.
- The details filled by you on the online form for NPS account should match the details already with your bank. If they don’t match the bank can deny your registration application and you would then have to contact the bank personally.
- Fill in all the mandatory fields.
- Upload a scanned picture and signature.
- You will have to use Internet Banking to make the initial contribution.
An NRI can open an e-NPS account too!
You would need to choose the status of your bank account, whether it is repatriable or not.
Next you should furnish details of your NRO or NRE account and upload the passport’s scanned image.
Lastly, select where you want your communication from e-NPS, at the permanent address in India or abroad.
Remember that overseas communication will be charged extra.
Permanent Retirement Account Number (PRAN)
Once the application is submitted online, you will be allotted your individual PRAN number.
For a Tier-I account that has had PRAN generated through Aadhaar Card, they can opt to either eSign their application or print and courier it to the eNPS processing centre.
A copy of the e-signed document need not be sent to the eNPS processing centre. Also there will be a charge of Rs.5 + service tax for e-signing.
If you are printing and couriering the form, remember to paste the photograph. Don’t sign across it, and neither should you pin, clip, or staple it!
Remember to send the forms to the processing centre of eNPS within 90 days of allotment of PRAN or it will be ‘frozen’ temporarily.
Gain Count of Having a NPS Account
Let us tabulate what different kind of investors earn when they invest their funds through their Tier-I accounts in NPS.
Asset Mix of NPS Funds
Allocation by Investors
Equity (in %)
Corporate Bonds (in %)
Gllts (in %)
*the data is as on date March 4th, 2016.
Allocation by Investors
3 Years (%)
5 Years (%)
*the data is as on date March 4th, 2016.
Offline NPS Account Opening
You can open NPS accounts offline as well.
First you need to find a PoP or Point of Presence near you. There are 63+ PoPs that can assist you in this.
Several banks act as intermediaries that can help you open your NPS accounts, do the KYC, and receive contributions to your NPS accounts.
You will be given a registration form to fill. Select the relevant options, fill out the details neatly and correctly, and submit it along with all your KYC documents.
You will be charged Rs.125 as PoP charges for account opening.
Once the PRAN is allotted to you, you will receive all the relevant information and passwords from the CRA (Central Record keeping Agency, eNPS processing centre.
Investing in NPS
Tax benefit by investing in NPS can be benefitted under Section 80C of the Income Tax Act.
A maximum of Rs.150,000 can be claimed as deductions if you invest in NPS along with host of other tax-saving instruments like PPF, ELSS, Life Insurance, etc.
Also, with Budget 2016 providing an additional benefit of Rs.50,000 to anyone investing in NPS, under Section 80CCD(1b), the Pension scheme has assumed even more importance from individual taxpayers.
You can use your debit or credit card to make payments in your NPS account. But be warned, there will be a 1% payment charge charged by the payment gateway!
For people who want to open an eNPS account but whose Aadhaar number and PAN number are still not linked with their saving bank account, will have to wait for the next financial year to invest in NPS!
This is because, with the financial year drawing to a close, the number of people wanting to avail maximum tax benefits has gone up considerably!
That is why, application processing is taking about 15 to 20 days.
The financial year will end before you can receive your PRAN!
NPS funds to Invest In
You cannot move your money between different NPS funds at your discretion. The investment cannot be withdrawn for a minimum of 1 year!
Therefore, choosing a correct pension fund is important.
ICICI Prudential Pension Fund has been a top performer in both 3 and 5 years bandwidth, with its current NAV at 21.10.
NPS Returns 2016
As per PFRDA, the returns on NPS as on 31st August, 2016 are as follows
The ranking of NPS funds based on their percentage of return for past 3 years is as follows:
- UTI Retirement Solution - 19.78%
- ICICI Pension Fund - 19.75%
- Kotak Pension Fund - 19.41%
Whereas, the other pension funds performed as follows:
- SBI Pension Fund - 19.35%
- HDFC Pension Fund - 19.12%
- Reliance Pension Fund - 18.70%
- LIC Pension Fund - 15.26%
The Ranking of NPS funds based on their percentage of return for past 5 years is as follows:
- ICICI Pension Fund - 14.15%
- SBI Pension Fund - 14.11%
- UTI Retirement Solution - 14.06%
The performance of the other pension funds was as follows:
- Kotak Pension Fund - 13.92%
- Reliance Pension Fund - 13.53%
LIC Pension Fund and HDFC Pension Fund were launched in 2013 only, that is why there are no comparative performance figures for them over a 5 year period.
ICICI Pension Fund has been consistently performing over the years yielding good returns.
Where base average return for 3 years for Tier-I NPS funds was 13.15%, ICICI Pension Fund gave a return of 13.38%!
Average Standard Deviation was 5.72, and ICICI Pension Fund scored a whopping 6.24!
The best fund manager differs for each Tier in the NPS scheme. Investing in them should be judged according to their performance over the years.
Contributions to the eNPS account can be done through SBI ePay for both Tier-I and Tier-II subscribers.
A total of 44 banks are associated with the SBI ePay. The same can be checked at the NSDL official site.
eNPS facility is is not available for those who have already enrolled themselves under the APY or Atal Pension Yojna.
Once you have opened your online NPS account you have to make a payment into your eNPS account. Minimum payment that you can make is of Rs.500.
According to PFRDA, as on 17th February, 2016, 2,411 NPS accounts were opened online using the PAN e-KYC method. Whereas, 2,573 online NPS accounts were activated by Aadhaar e-KYC!
Most Searched Topics
- Top 5 Best Mutual Fund Plans to Invest in India in 2017
- Section 80D Deduction for A.Y 2016-17
- Section 80C Deduction for A.Y 2016-17
- What is Form 16 & How To Download It
- Income Tax Exemptions for Salaried Employees
- Tax Benefits on a Health Insurance Policy
- Section 80D Mediclaim Income Tax Deduction for Individual
- Section 80D of ITA: Deductions for Medical Insurance and Preventive Health Checkups
- How to Check Income Tax Return Status Online?
- Income Tax Planning For Salaried Employees in India
- Income Tax Benefits in FY 2016-17 on Home Loan Interest
- Income Tax Deductions under Section 80D of Income Tax Act, 1961
- Advantages and Disadvantages of the Tax-Saving Fixed Deposits
- How to Pay Income Tax Online in India 2017
- How to Save Tax on Salary?
- Tax Exemption on Health Insurance under Section 80D
- Compute Your Income Tax through the Income Tax Calculator
- Section 80D Tax Deduction For Medical Insurance Premium And Mediclaim Reimbursement Allowance Under Section 10
- How to Save Tax with Health Insurance?
- Know about Mediclaim Deduction for the AY 2016-17 and Plan your Future with us at Policy Bazaar!
- Income Tax Filing For the Freelancers
- How to File Income Tax Return Using Form 16
- Understanding Salaried Income and Its Tax Computation
- An Insight into Section 80D Deductions for Health Insurance Premium and Checkups
- Systematic Investment Plan (SIP) - Features, Benefits & Process of SIP
- How to Send Your ITR-V to CPC Bangalore
- How to Check ITR-V Receipt Status?
- How to Make Corrections to TDS Returns?
- eFiling Income Tax
- What is TDS (Tax Deducted at Source)?
- Tax Benefits on Children's School Fees
- How To Save Income Tax on House Rent Allowance
- Income Tax Slabs Rates for Financial Year 2016-17
- Handling Income Tax Notices form IT- Department
- What is the Difference between AY and FY?
- How to file Income Tax Return Online in India?
- Tax Exemption on Insurance Premiums
- Learning to Calculate Income Tax Levied on Salary Income
- How to View Filed TDS Statement on Income Tax Website?
- Best ways to save tax - Income Tax Saving Tips
- Take Home, Net Gross Salary vs CTC
- How to get Income Tax Return Form?
- Let's Talk About Part A and Part B in Form 16
- What is Reliance Tax Saver Plan?
- Advance Tax Payment Guide
- 5 Common Tax-Saving Mistakes and How to Avoid them
- Easy & Simple Steps to Upload TDS Returns Online
- NRI's without Pan: How to Avoid Higher TDS
- Complexity of Income Tax on Taxable Income
- All You Need To Know About From 27C
- TDS Will Not be deducted on Interest Paid to MUDRA
- Calculating Estimated Business Taxes
- Why Should You E-File Your Tax Returns
- Control the Currency with Policy Bazaar: Income Tax Guide For Start-ups
- Missed the Tax Filing Deadline? Here's what you can do about it
- File It Right: How to Avoid Rejection of Your ITR-V
- Tips for Startups while Generating Form 16
- How to Reduce the Burden of Income Tax and Increase Your Take-Home Salary?
- Useful Tips on Tax-Planning in India
- Income Tax Refund - Basics, Process
- Income Tax Deductions under Section 80
- Best Way to Calculate Your HRA (House Rent Allowance)
- Most Read
- Best Health Insurance Policies in India for 2017-2018
Date: 23 November 2017
- Never Ride Your Bike with a Lapsed Insurance Plan: Here's why
Date: 23 November 2017
- All about Senior Citizen Saving Scheme Plans
Date: 23 November 2017
- Here’s How You Can Claim Third Party Insurance
Date: 22 November 2017
- How to Avoid Hefty Medical Bills in a Travel Emergency Abroad
Date: 20 November 2017
- Best 5 LIC Policies To Invest in 2017
Views : 1089185
- How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Views : 1079246
- A Quick Guide To Post Office Monthly Income Scheme
Views : 417057
- Best Term Insurance Plans in India with Claim Settlement Ratio
Views : 411021
- Best Health Insurance Plans in India
Views : 353127