Introduction
The National Pension System (NPS) is a beneficial retirement scheme initiated by the Government of India. It aims to provide retirement solutions to serviceable citizens in the country. By opening an NPS account, individuals can accumulate savings into a pension fund that is managed and approved by the Pension Fund Regulatory and Development Authority (PFRDA). The funds are invested in various financial instruments such as shares, government bonds, and bills, which help the account grow over time. In this blog post, we will explore the different ways to open an NPS account and provide detailed procedures for both offline and online methods.
1: Opening an NPS Account Using PAN Card
If you prefer to open an NPS account using your PAN card, you can follow these steps:
- Find a Point of Presence (PoP) to subscribe to the scheme.
- Fill out the application form and provide the necessary details.
- Contribute a minimum amount of Rs. 500 and receive a Permanent Account Number (PAN).
- Receive a welcome kit with your account passwords.
2: Opening an NPS Account Using Aadhar Card
If you want to open an NPS account using your Aadhar card, here is the procedure:
- Visit the e-NPS portal and select “National Pension System” then “Registration.
- Select the Individual Subscriber or Corporate Subscriber category.
- Provide your Aadhar number and receive an OTP on your mobile phone.
- Complete the bank details verification and make an initial payment.
- Upload your photograph and digital signature.
- Make an online investment contribution.
- Print the NPS form, affix your photograph, sign it, and submit the form to the National Securities Depository Ltd. within ninety days.
FAQs
FAQ 1: Is PAN Card important for NPS?
To set up an NPS account, the applicant must have a Permanent Account Number (PAN).
FAQ 2: Can NPS be Opened Without Aadhar?
Since January 2019, Aadhaar-based registration for an NPS account has been disabled. However, complete KYC verification must be done if the registration is not based on Aadhar. This KYC verification needs to be linked to your PAN through the bank.
FAQ 3: What Does an eNPS Account Mean?
eNPS is an online platform introduced by the NPS Trust. It allows individuals to initiate their Tier 1 and Tier 2 Pension Account Numbers and contribute to their pension account using net banking.
FAQ 4: Can an NPS Account be Opened Offline?
Yes, an offline NPS account can be opened by filling out a registration form with a Point of Presence (PoP). You can obtain the registration form from any service provider. To find the nearest PoP-SP, visit the NSDL or KEINTECH website.
FAQ 5: What is a Cancelled Cheque in NPS?
A cancelled cheque is a blank cheque with the word “cancelled” written on it. It cannot be used to withdraw money.
FAQ 6: Is an NPS Card Used as an Identity Card?
The Permanent Retirement Account Number (PRAN) is used to register for an NPS account. It serves as your user ID for logging into the eNPS-NSDL website.
FAQ 7: Is KYC Important for NPS?
Yes, KYC (Know Your Customer) verification is important for NPS. The Aadhaar-based offline paperless process of KYC was introduced to bring new subscribers under the National Pension System. It is also required to inquire about the ITR filing for FY 2020-21.
Conclusion
Opening an NPS account is a simple process that offers various retirement solutions. Whether you choose to open an account using your PAN or Aadhar card, the procedure is straightforward and can be done offline or online. By following the steps and guidelines provided in this blog post, you can open an NPS account and secure your financial future.