National Pension System or NPS, a government-run investment scheme, gives the subscriber the option to set the preferred allocation to different asset classes. It was originally launched for government employees in 2004 and extended to the general public in 2009.

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NPS offers two kinds of accounts—Tier 1 and Tier 2—for instruments including government bonds, equity market and corporate debt. While the Tier 1 NPS account is strictly a pension account, the Tier 2 account—known as an investment account—is a voluntary saving account associated with the PRAN.

Also read: Here are 5 benefits of NPS investments

Any citizen of India between the age of 18 to 65 can open an NPS account. The subscriber can either apply for an NPS account by visiting a Point of Presence (PoP) or do it online through the e-NPS website.

Here are key things to note for opening an NPS account online:

1. Subscribers willing to open an NPS account must have a 'Permanent Account Number' (PAN)

2. Bank/Demat/folio account details empanelled with the bank/non-bank for KYC verification for subscriber registration through eNPS is required. The KYC verification is done by the bank/non-Bank POP selected by the user during the registration process. The name and address provided during registration should match with POP records for KYC verification. If the details don't match, the request is liable for rejection. In case of rejection of KYC by the selected POP, the applicant is requested to contact the POP.

3. Users are required to fill up all the mandatory details online and upload scanned copy of PAN card and cancelled cheque in file size of between 4KB - 2MB. The scanned photograph and signature must be in the size between 4KB - 5MB.

4. Users will be routed to a payment gateway for making the payment towards NPS account from internet banking.

In addition, NRI subscribers should select the bank account status i.e., non-repatriable account or repatriable account and provide the NRE/NRO bank account details and upload a scanned copy of the passport. They are also required to select the preferred address for communication i.e., overseas address or permanent address (communication at overseas address would entail extra charges).

Also read: How to avail income tax benefits under National Pension System

Here are the steps to open an NPS account online:

Step 1:

Visit the eNPS website- enps.nsdl.com/eNPS/NationalPensionSystem.html - to register online. The mobile number, Aadhaar, and Permanent Account Number (PAN) must be linked with the NPS account.

Step 2: To complete the validation, an OTP will be sent to the registered mobile number.

Step 3: Upon completion of registration, the subscriber will receive a Permanent Retirement Account Number (PRAN), which can be used to log in to the NPS account.

Step 4: After PRAN is allotted, the subscriber has to select the 'eSign' option.

Step 5: OTP for the purpose of authentication will be sent to the mobile number registered with the Aadhaar.

Step 6: After authentication of Aadhaar, the registration form will be successfully eSigned. Once a document is eSigned, users are not required to send the physical copy of the form to Central Recordkeeping Agency (CRA).

(Edited by : Ajay Vaishnav)

First Published:Dec 7, 2020 9:42 AM IST