How to open NPS account online?

NPS has emerged as a popular tax saving tool at par with EPF. but the issue on taxation of 60% of the proceeds on maturity or buying annuity is a moot point and hoped to be resolved soon. Opening of NPS account was a herculean task till now but have been made easier through online NPS account.

Types of NPS accounts: There are Two types of account i.e TIER I and TIER II

  • Tier I is the mandatory account for long-term savings. Additional Tax benefit upto Rs.50,000 is available u/s 80CCD (1B) over and above the 80C limit of Rs1,50,000/-
  • 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.
  • To open Tier II account you need to have Tier I account first.

A subscriber is required to open a Tier 1 account with the Central Recordkeeping Agency (CRA). Each account is identified by a unique Permanent Retirement Account Number (PRAN). It is now possible to open this account online using the e-NPS system by accessing the following link: https://enps.nsdl.com

Who can open a NPS account?

Both Resident and Non-Residents can open NPS account. NRIs need to give their Passport number along with PAN or Aadhar. Age limit: 18 to 60 years.

Steps for opening the account:

Step 1.  two ways to start with

  • With AADHAAR card , OR
  • With PAN card.

With Aadhaar Card

Aadhaar is better for opening an NPS account online as it is treated as an address proof also. On accessing the above link, one needs to enter one's Aadhaar number. Once the Aadhaar number is submitted, an OTP is sent to the mobile number registered in the Aadhaar database. Demographic details of the applicant including photograph are updated from the details registered in the Aadhaar database. With Aadhar card you can make payment through any bank.

With Pan card

Have a PAN Card, mobile number, email ID and an active bank account with Net banking facility. List of empanelled banks (Savings Bank/Current Account),  

Sr No

List of Bank

Sr No

List of Bank

1

Allahabad Bank

12

State Bank of India

2

Andhra Bank

13

State Bank of Patiala

3

Bank of India

14

State Bank of Travancore

4

Bank of Maharashtra

15

Syndicate Bank

5

Corporation Bank

16

Tamilnad Mercantile Bank Ltd

6

Dena Bank

17

The Karur Vysya Bank

7

IDBI Bank Limited

18

The Lakshmi Vilas Bank Limited

8

Indian Bank

19

The South Indian Bank Limited

9

Oriental Bank of Commerce

20

UCO Bank

10

State Bank of Bikaner & Jaipur

21

United Bank of India

11

State Bank of Hyderabad

22

Vijaya Bank

 Your KYC verification will be done by the Bank. A onetime fee of up to a maximum of Rs. 125 (plus applicable taxes) will be debited from your Bank account by the Bank as KYC authentication charges.

 Step 2. Fill up all the mandatory details online

-Personal Details, Contact Details, Bank and Other Details, Nomination Details

Step 3. Upload photo and signature

Scan and upload your photograph and signature in jpg or jpeg format with file size 4 to 12 KB. In case of Aadhaar card, uploading photograph is not mandatory.

Step 4. Online Payment

Make online payment (Minimum amount of Rs 500/-) towards your NPS account from Debit / Credit card or Internet Banking.

Step 5. Send Application to CRA

Print the form, paste photograph & affix signature and submit the Form to CRA on following address within 180 days from the date of allotment of PRAN. Please do not sign across the photograph

Central Recordkeeping Agency address (eNPS)

NSDL e-Governance Infrastructure Limited,

1st Floor, Times Tower,

Kamala Mills Compound, Senapati Bapat Marg,

Lower Parel, Mumbai - 400 013.

 Step 6. Receive Welcome kit

 Receipt of the PRAN Kit containing a PRAN Card, IPIN/TPIN, Subscriber Master Report, Scheme Information Booklet along with a Welcome Letter will be sent to your registered address.

 Contribution:

Once account is opened, you can contribute toward your NPS account through online by following steps:-

 To contribute online, you need to

ü  Visit above link and go to contribution

ü  Authenticate your PRAN using the OTP sent to your registered mobile number

ü  Pay through your Debit / Credit card or use Internet Banking option.

Verification

To check your  details you can visit the website cra-nsdl.com/CRA and enter your I-PIN and password under nodal offices. For queries you may contact: 022 - 4090 4242 or mail to: This email address is being protected from spambots. You need JavaScript enabled to view it.

Last modified on Wednesday, 04 May 2016 09:28

Prakash Praharaj

Shri Prakash Praharaj has a passion for excellence. He has been awarded two gold medals for securing top positions both in Graduation and Post Graduation in Commerce. He is an MBA with specialization in Finance and marketing. He has been awarded Diploma in Treasury, Investment and Risk Management besides CAIIB from the Indian Institute of Bankers. He is a Certified Financial Planner from the Financial Planning standards Board, India (FPSB), affiliated to FPSB, Denver, USA and Certified Personal Financial Adviser from NISM. He is also a SEBI registered Investment Adviser vide Reg. no. INA 000000045 dated 2nd August 2013.His book "Your Every day guide to Personal Finance and Insurance" has been published by CNBC TV 18 in August 2015.

10 comments

  • niraj

    posted by niraj

    Tuesday, 22 March 2016 11:57

    really NPS Account is good option for retirement planning

    Report
  • arnav

    posted by arnav

    Wednesday, 16 March 2016 07:47

    must say that its today's need..tnx to share with us

    Report
  • sagar

    posted by sagar

    Wednesday, 16 March 2016 07:44

    very well explained each n every step..tnx

    Report
  • ambika

    posted by ambika

    Wednesday, 16 March 2016 07:41

    very informative...seems better than epf or ppf..i would like to suggest my co-workers..

    Report
  • Maritza Cerao

    posted by Maritza Cerao

    Thursday, 10 March 2016 04:00

    How do you compute the start-up costs for starting a website?

    Report
  • Danyel Teahan

    posted by Danyel Teahan

    Tuesday, 08 March 2016 06:15

    hello, thanks for this interesting article.Good luck!

    Report
  • pooja

    posted by pooja

    Friday, 04 March 2016 12:17

    thank you for make it clear..very simple procedure to do as compare to offline procedure.

    Report
  • Suresh Babu.S.

    posted by Suresh Babu.S.

    Friday, 04 March 2016 07:05

    Excellent piece of information and well timed. People are confused about EPF and NPS and you have thrown sufficient light into it.

    Report
  • Suresh Babu.S.

    posted by Suresh Babu.S.

    Friday, 04 March 2016 07:05

    Excellent piece of information and well timed. People are confused about EPF and NPS and you have thrown sufficient light into it.

    Report
  • Suresh Babu.S.

    posted by Suresh Babu.S.

    Friday, 04 March 2016 07:04

    Excellent piece of information and well timed. People are confused about EPF and NPS and you have thrown sufficient light into it.

    Report

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