With effect from 1 January 2004, the Indian Government introduced the National Pension System (NPS) for its employees. However, from 1 May 2009, the scheme became available for all Indian citizens. NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). The Central Recordkeeping Agency (CRA) for the scheme is NSDL. Functions like customer service, administration and record keeping of all NPS subscribers are undertaken by the CRA. A Permanent Retirement Account Number (PRAN) is issued by CRA to all NPS subscribers.
Given below are the main objectives of NPS:
- Providing income to the retired elderly/senior citizens.
- Providing decent returns over the long run.
- Increasing the scope of old age security coverage and provide it all the people.
Apart from saving towards retirement, NPS also helps in saving tax. Currently, opening an NPS account with an Aadhaar card has been disabled. Therefore, individuals can open an account by using their Permanent Account Number (PAN) card. Opening an NPS account online is known as eNPS. For more information click here.
Documents required for opening an NPS account online
Given below is the list of documents that are needed when opening an NPS account online:
- Scan copy of a cancelled cheque. It should be either in .pdf, .jpg, .jpeg format and must be between 4KB and 2MB in size.
- Scanned copy of the PAN card. The format must be either .pdf, .jpg, or .jpeg and the size can be between 4KB and 2MB.
- Savings/current bank account details for the bank account that you want your NPS account to be linked with.
- Internet banking details,
Procedure to open NPS account online
Given below is the step-by-step procedure to open an NPS account online:
- You must visit the eNPS website
- The next step is to click on ‘National Pension System’ which can be seen on the right side of the page.
- Next, click on ‘Registration’.
- On the next page, select ‘New Registration’, followed by ‘Individual Subscriber’.
- You can choose either ‘Tier I & Tier II’ or ‘Tier I only’ under ‘Account Type’.
- Next, enter your PAN details.
- Under the drop-down menu ‘Select your Bank/POP’, choose the bank you wish to link.
- As KYC authentication charges, a maximum charge of Rs.125 plus taxes will be charged as a one-time fee.
- The next step would be to click on ‘Get Acknowledgement No.’. It is important to make a note of the number as it could help you to log in again should there be any internet issues.
- You must now enter the Foreign Account Tax Compliant Act (FATCA) details and declaration. If you are an Indian resident, please mention your PAN number and residential details under ‘Tax Identification Number’.
- The next step would be to enter your address. The address must be the same that is mentioned in your bank details.
- Next, enter your bank details.
- The next step would be to choose your Pension Fund Manager from the drop-down. However, you will be able to change this later.
- Select the Investment Option you would like to choose. This can also be changed later.
- The next step would be to upload the scanned copies of your PAN card and cancelled cheque.
- Your PRAN will get generated.
- To complete the registration, you must eSign the registration form.
You will need to take a print out of the registration form and send it to CRA along with your photo and signature. The PRAN will be temporarily put on hold if you do not send the registration form to CRA within 90 days of the PRAN generation.
The registration form must be sent to the below-mentioned address:
Central Recordkeeping Agency (eNPS)
NSDL e-Governance Infrastructure Limited,
1st Floor, Times Tower,
Kamala Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai – 400013
Once details have been sent to the CRA, further communication can be carried out via email at [email protected]
An Acknowledgment Number is generated, and you will receive the number on your registered email ID and mobile number. On completion of the process and verification of the NPS account, you must visit the eNPS website again and click on ‘Contribution’ to start making contributions towards your NPS account.
Opening an NPS account online is very easy by following the above-mentioned steps. However, it is necessary to keep the relevant documents ready when opening an account online. Under Section 80C of the Income Tax Act, subscribers can also avail income tax benefits if they invest in NPS.