How to open an NPS Account Online ?

By:B2B Desk 2018-08-20

The national pension scheme or the NPS have emerged a subject of interest between financial experts in the recent years. If you fall under the age group of 18-60 then you can open up your personal NPS account.  

Even if you are an NRI you can apply for an NPS account fulfilling certain terms and conditions. After attaining the age of 60 you can opt for 60 % of the money invested. As for the remaining 40%, it will serve as your monthly pension.

Before going on to the process of opening an NPS account lets clear out a few terms related to it.

What is a pension fund manager?

Well, financial institutions such as various banks which render the facilities of NPS schemes are the pension funds managers. The PFRDA currently enables some of the few banks to function as pension fund managers. SBI Pension funds, Retirement solutions offered by UTI and LIC Pension Fund are some of these. If you don’t specify the PF then your NPS account will be handled by SBI Pension Funds, which acts as the default PF specified by the government.

What are the available investment options present in case of NPS?

After choosing a PF manager of your choice, you have to point out your pick between- between active choice and auto choice. In case of active choice-you have to buy funds under the 3 different fund categories (E, C, and G) that are, equity funds, corporate bonds, and government securities. Whereas if you pick auto choice, the PFRDA will specify the number of funds you should be invested by tallying your age.

Can you change your PF manager?

Of course, you can do, provided you have purchased all the shares from a particular PF manager. If you are displeased and dissatisfied with the service of your current PF manager you are allowed to switch to another manager once a year.

Now that you have understood the pre-requisites before opening an eNPS account, it’s time to update you about the process of applying it online.

Mandatory documents and other essentials

•    PAN card or Aadhaar Card. Your PAN must be linked with your bank account, through which you are going to apply. Your Aadhaar should bear your correct address.

•    ATM cards-Debit or Credit cards. Net banking facility will also do.

•    Passport size photograph and your signature in scanned format.

•    Your account balance should carry a minimum sum of 500 rupees.

Check if you own all the necessary documents such as identity cards and bank papers. Now, you can cover up the application of eNPS process in 2 ways.

 

Registration using your Aadhaar

•    Your mobile number must be linked to your Aadhaar number.

•    The KYC required for NPC will be executed by sending OTP into your registered mobile number to authenticate your details.

•    Your picture, as well as your details, would be extracted from your Aadhaar card with the sole purpose of using it for your NPS online form.

•    Then you would come across a form. Fill in the imperatives carefully.

•    To begin the registration process, you have to upload your signature in either .jpeg or .jpg format within the size of 4kb or 12kb

•    However, if you don’t wish to use your Aadhaar picture, then you have the option to upload a new one.

•    After the completion of this process, you would be directed towards the payment gateway to make the NPS contribution.

Registration using your PAN card

•    If your bank account is in an NSDL enlisted bank then you need not worry about KYC, as your bank will do it for you.

•    Make sure to provide the exact details during the KYC process as well as the NPS form filling process. If any mismatch is found between the two records, your bank possesses the complete right to stall your registration process.  If it happens, you can resolve this process by communicating with your bank.

•    Fill in the online form by giving your authenticate details.

•    Upload your signature in either .jpg or .jpeg format between 4kb-12kb size.

•    You would be led automatically into the payment gateway, where you have to pay the required amount through internet banking facility or ATM cards.

The registration process for the NRIs

Now since the NRIs do not possess Aadhaar or PAN details their process of applying for eNPS is a bit different.     

•    If you are an NRI you have to choose your bank account status between NRO account or NRE account.

•    After selecting enter your bank details. You would be asked to upload a scanned copy of your passport.

•    After uploading your scanned copy you have to provide an address through which the bank can contact you. You are eligible to provide details either of your permanent address or overseas address. Keep in mind that in case you opt to choose your overseas address you have to bear extra charges.

PRAN Generation

•    After completion of your application process, a PRAN number would be assigned to you.

•    If you have completed your registration using your Aadhaar then you fall under the tier-1 category. In this case, you can opt to e-sign your application. Or else, you can take a printout and courier it to the eNPS processing center.

•    Even if you choose to esign the form, sending of the e-signed copy to the eNPS processing center is not required.

•    In case you want to send your form, make sure to stick or staple your photograph before couriering.

•    When sending the form, don’t sign in it and make sure not to fold or staple it.

•    If you fail to send your application within 3 months of obtaining your PRAN your application would go into a frozen state which would be non-permanent in nature.

You would receive an email stating about IPIN generation for your PRAN number. In order to access or invest in your NPS account, the IPIN is required.

Conclusion

Creating an online NPS account will no longer be daunting, now that you have gone through this article.

Moreover, with benefits such as tax exemption with an annual investment of only INR 2 lakh in the NPS account, it should now be very clear to all, as to what sets an NPS account apart from other pension schemes.

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