The National Pension System is a pension program backed by the Government of India to offer pensions to the elderly who had saved funds for retirement.
Earlier this fund option was only available to the Government employee but, the government had opened this scheme for every individual.
It is also a market-linked scheme meaning your funds will be invested in the market and in return you’ll get very attractive returns on your investment.
India is an emerging major economy with the highest GDP growth rate and therefore, it is certain that the stock market of India i.e. BSE and NSE are going to perform very well in the coming year.
This makes the NPS scheme even more attractive which is why one should consider the NPS Account as an investment tool.
In this article, we will discuss how to open an NPS account in Indian Bank? documents, online & offline processes, etc.
Table of Contents
Type of NPS Account
The following are the two types of account NPS account offers-
| Tier-I | Tier-II |
| Mandatory Account | Optional Account |
| Tax Benefit up to Rs.1.5 lakhs | No tax benefit |
| Mandatory Contribution once every year | Flexible Contribution as per your wish |
| Withdrawal at maturity | Flexible withdrawal as per the account holder requirement |
| Only 20% of the maturity amount will be taxed | Tax will be calculated on 100% of the maturity amount |
| Initial contribution-Rs.500/- | Initial contribution-Rs1000/- |
Eligibility Criteria for NPS Account
The following are the eligibility criteria for NPS Account-
- Only Indian Citizen can get apply for NPS Account
- The minimum age to subscribe for the NPS Account is 18 years and the maximum age is 60 years with an option to extend the account till 70 years of age
- Initial contribution amount is Rs.500/- and Rs.1000/- for Tier-I and Tier-II account respectively
How to Open NPS Account?
The following are the step by step processes for opening an NPS Account-
Online NPS Account Opening
The following are the step by step processes for opening an online account opening-
- Visit the online NPS Portal
Visit the official website of the National Pension System and click on the NPS Button
- Click on the Registration button
Now, click on the registration button to begin the process of registration
- Fill the form with correct details
A registration form will appear where you’ll find a form which you’ll have to fill with details like name, Aadhar card number, resident status, etc.
- Enter the OTP
Now, click on the generate OTP button and enter the OTP received on your Registered mobile number in the given field
- Fill out the form correctly
After entering the OTP, you’ll be redirected to another form which you’ll have to fill out with correct details. You’ll also have to provide the document number in the form for identification
- Click on generate acknowledgment number
After filling the form, click on generate acknowledgment number followed by clicking on the OK button
- Now, you’ll be redirected to the semi-filled form
Now, you’ll be redirected to a semi-filled form with multiple sections which you’ll have to populate with the correct details like bank details, nomination, address, etc.
- Enter the Pension Fund Manager
Under the pension fund manager section, you’ll have to choose the pension fund manager listed below, by default it is SBI Pension Fund Manager
- Upload the document mentioned below
After selecting the fund manager, you’ll have to upload the documents mentioned below followed by entering the amount you want to contribute and clicking on the pay button
- You’ll receive PRAN Number
After the payment is successful, you’ll receive a PRAN Number which is your NPS Account number and can be used to access your account
- Now, e-Sign using your Aadhaar card number
Now, you’ll have to e-Sign using your NPS Aadhaar authentication
- You have Successfully Opened the NPS Account
You have successfully opened the NPS Account and you can use your PRAN number to access your account.
Pension Fund Manager List
The following are the Pensioner Fund Manager list to choose from-
- SBI Pension Funds
- LIC Pension Fund
- UTI Retirement Solutions
- HDFC Pension Fund
- ICICI Prudential Pension Fund
- Kotak Pension Fund
- Reliance Capital Pension Fund
- Birla Sun Life Pension Management Ltd.
- Indian Post Office
Offline NPS Account Opening
- Visit the Indian bank branch and ask the bank representative for the NPS Account opening form
- Now, fill the form with correct details and attach the documents mentioned below and submit it along with the initial deposit amount
- The bank representative will review your application and forwards the application form for further activation process
- After successful opening of your NPS Account, you’ll be notified about the NPS Account. You’ll also receive the PRAN Number using which you can access your NPS Account.
Documents Required for NPS Account
For opening the NPS Account, you are required to have the following documents-
- Any one document of the Identity Proof- Aadhaar Card, Class 10 and 12 certificates, PAN Card, Passport, etc.
- Any one document of the Residence Proof-Electricity bill, Utility bills, Bank Passbook first page, etc.
- Application Form for opening NPS Account
- PAN Card (Mandatory) scanned
- Aadhaar Card (Mandatory)
- Cancelled Cheque
- Scanned passport size image
- Scanned Signature
FAQ
The account holder can continue his/her account up until they hold their Indian Citizenship.
No, there is no cap on the number of times to contribute to the account.
There are no limits on how much funds to contribute, you can contribute as much as you like.
No, this account is only available for Indian Nationals.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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