How to open an NPS account online The NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Here is the process to open an NPS account online
An NPS (National Pension System) account is a retirement savings scheme that allows the subscriber to invest in different asset classes and enjoy tax benefits. The NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Here is the process to open an NPS account online.Website
Visit the official eNPS website (https://enps. nsdl.com/eNPS/NationalPension-System.html) or the website of any of the authorised banks or financial institutions that offer NPS services.
Registration
Click on ‘registration’ and select ‘new registration’. The applicant needs to provide his Aadhaar or PAN number, mobile number and e-mail ID. He will also need to choose from among three central recordkeeping agencies to maintain the NPS account details. After OTP validation, personal details need to be filled. .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:10px;font-weight:500;line-height:18px;} #sr_widget .sr_desc{margin:0 auto 0;} #sr_widget .sr_desc{color: #024d99;}
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Documents
The applicant needs to upload a recent photograph, signature and a cancelled cheque or bank statement as proof of bank account details.
Account selection
Next, the applicant will need to choose the account type, either Tier I or Tier II, or both. Tier I is the mandatory account that offers tax benefits, but has restrictions on withdrawals. Tier II is the voluntary account that allows more flexibility, but has no tax benefits.
Choice of manager
The applicant will also need to choose his pension fund manager, who will invest in different asset classes. One can choose from the fund managers available in the list.
Contribution and activation
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). The applicant will have to complete the e-sign or OTP-based authentication process to verify his identity and activate the NPS account.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
This story originally appeared on: India Times - Author:Faqs of Insurances
