E-Paper
National Pension Scheme: How to open NPS account, benefits and eligibility
National Pension Scheme: The applicant needs a recent photograph, signature and a cancelled cheque or bank statement as proof of bank account details.
National Pension Scheme (NPS) is a voluntary and long-term investment plan for retirement. Earlier, the scheme covered only Central Government employees but now it is open to all Indian citizens on a voluntary basis. To participate in the scheme, an NPS account has to be opened. At the time of retirement (60 years), a person can withdraw up to 60% of the total corpus as a lump amount. The remaining 40% goes into an annuity plan. Although, subscribers can withdraw the entire corpus if it is less than or equal to ₹5 lakh without purchasing an annuity plan. These withdrawals are also tax-free.
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Process of making NPS account online
- Visit the official eNPS website (https://enps. nsdl.com/eNPS/NationalPension-System.html).
- Click on ‘registration’ and select ‘new registration’.
- Provide Aadhaar or PAN number, mobile number and e-mail ID.
- Applicant also needs to choose from among three central recordkeeping agencies to maintain the NPS account details.
- After OTP validation, personal details need to be filled by the applicant.
What are the documents needed for making the NPS account?
The applicant needs a recent photograph, signature and a cancelled cheque or bank statement as proof of bank account details.
What you need to know about account selection?
The applicant will need to choose the account type, either Tier I or Tier II, or both. Tier I is mandatory account that offers tax benefits but has restrictions on withdrawals. Tier II is voluntary account that allows more flexibility although it has no tax benefits.
How to activate the account?
The applicant can start with an initial contribution of at least Rs.500 for Tier I, and Rs.1,000 for Tier II account. The applicant will then get a 12-digit Permanent Retirement Account Number (PRAN) and will have to complete the e-sign or OTP-brd authentication to verify identity and activate the NPS account.
