Pauline E. Ranger It’s a no-brainer to save for the future. What will you do when you stop working or take a break? The NPS was designed to do just that. This tax season, learning about the NPS is a good idea.
What is NPS (National Security System)
The National Pension Scheme is a government-sponsored investment plan for anyone over 18 who wants a steady income during retirement. This plan allows you to invest and receive payment after maturity. Individuals have four investment options under the NPS: equity, corporate bonds, alternative investment funds, and government bonds. We will now go into more detail on this scheme and how to set up an NPS account.
Types of NPS accounts
You have two options when it comes to NPS. Before you learn how to open an NPS account, you must know the different types of NPS Accounts.
Tier 1 Account
Tier 1 is NPS’s primary account. To invest in NPS, you must have a Tier 1 Account. You can open this account for at least Rs 500, online or offline. You will then need to contribute a minimum of Rs 1,000 per year. This account has a maturity age of 65. After maturity, 60% can be withdrawn with applicable tax, and the remaining 40% can be used to buy annuities that will provide regular monthly income.
Tier 2 Account
Tier 2 is not an NPS mandatory account. Depending on your interest, you can choose whether to open this account. The minimum investment to open a new version is Rs 1,000. You are not required to contribute a minimum amount each year. You can choose to deposit or not. Tier 2 accounts do not have a lock-in period, so you can withdraw your money whenever you like.
How to open an NPS account
You must understand how to open an NPS account if you plan to do so. You have two main options: online or offline. You can choose either option, depending on your preference or convenience.
How to open an NPS account online (Tier 1)
You can open an NPS online account by following the steps below.
Visit the NPS Website
Select one CRA
Fill out the online form with the correct details.
Open your account within 15 Days of receiving an acknowledgment number
Complete your KYC
You must provide your bank account details and a few other documents.
You can now pay Rs 500 (Tier 1) using the preferred payment method.
After successfully opening your account, you will receive a 12-digit PRAN.
A confirmation SMS will be sent to your email address.
How to Open an NPS Account Online (Tier 2)
Visit eNPS
Click on “Activate Tier 2 Account”
Please enter your PRAN and PAN and details such as your date of Birth.
Click on the ‘Verify PRAN’ button.’
You will need to pay Rs 1,000 as an account-opening contribution after verification.
You will receive a confirmation email when your account is opened.
How to sign in to your NPS account
You can log in using your PRAN number if you’ve created an NPS account. Below are some other ways to log in.
NSDL NPS Portal
Visit the NSDL NPS Website
Select “open your NPS Account” and click “login using PRAN/PIN.” Then you will be directed to the login page.
Click on “Password for eNPS” to create a new password.
After that, the website will ask for your PRAN, DOB, and new password. It may also require a captcha. Click on “submit” after you have entered all the details.
Once you have completed this step, an OTP will be sent to your registered mobile phone number.
Log in using your new password and OTP by entering the OTP into the portal.
KFintech NPS PORTAL
Visit the website of Kfintech.
Select “Login for Existing Subscribers” from the menu.
You’ll now be directed to a login screen. You will be redirected to a login page. Select “Reset password.”
The portal now asks for PRAN, DOB, and a captcha.
Enter the OTP you received via your registered number.
Internet Banking
Log in to your online banking account
Click on the “NPS” option in the “Services” tab.
You can view all of the information about your NPS account here, including any transactions.
Documents needed to open an NPS account
You must have the documents needed before you can open an NPS account. On the NSDL’s website, you will find a list of documents required to open an NPS account.
Aadhar offline paperless e-KYC ZIP file
The PAN card and the cheque should be scanned in JPEG, jpg, PNG, or PDF format. These files should range from 4KB to 2MB in size.
The size of the files should be between 4KB and 5MB.
The documents needed to open an NPS online account if the KYC process has not been completed earlier are:
Documents that are acceptable as proof of address include
Copies of the account
Driving license
Electricity bill
Proof of ID from a local gazetted official, municipal councilors, MPs, MLAs
PAN card
Employees are issued with an identity card.
Water bill
Certificate of School Graduation
Rent receipt
Proof of date of birth
ID Proof looks like this:
Driving license
PAN Card
Proof of ID from a local gazetted official, municipal councilors, MPs, MLAs
Certificate of School Graduation
Employees are issued with an identity card.
Summary
It is easy to open an NPS account. NPS is open to any Indian citizen aged between 18 and 60. The individual must also comply with KYC standards.
