How to Apply for an NPS Account Online and Offline?
NPS or National Pension Scheme was launched by the government of India for offering retirement security to Indian citizens. Let’s learn about this pension plus investment plan in detail, in this post.
The National Pension Plan allows Indian citizens the option to invest in a long-term savings plan for their retirement by investing in the regulated markets. The best thing about NPS is that it can be availed by any citizen of India including NRIs and OCIs between the age of 18 to 70 years.
Interestingly, NPS has received wide acceptance by citizens across government and non-government sectors who are contributing crores of rupees to the scheme. Let’s discuss some details of the plan here.
What is National Pension Plan?
NPS or National Pension Scheme is an easy to access scheme that is affordable and tax-efficient at the same time. The pension plan is introduced for people as a retirement saving scheme to benefit them in their old age. Salaried individuals can contribute to NPS to secure their retirement, while a co-contribution comes from their employer.
The NPS account functions on the basis of defined contribution where account holders contribute to their accounts. However, no defined benefits are estimated in advance which the subscriber will receive at the time of plan exit. The corpus that is accumulated depends on the contributions made and income gained from the scheme. Depending on your contribution amount you receive the benefits. The more the contribution the better the wealth.
National Pension Plan Objectives
With NPS, Indian citizens can meet their post-retirement needs to live a comfortable life
Financial planning with NPS would support wealth creation for retirement
The NPS plan allow systemised savings planned during the working years of individuals to save for their future or old age
The NPS scheme was introduced by Indian government to address the financial concerns of senior citizens in the country
National Pension Plan Eligibility
Unlike other pension schemes, NPS allow Indian citizens including NRIs to subscribe to the scheme. As far as the entry age is concerned, 18 to 60 years is the duration during which you can join an NPS scheme
How to Apply for NPS Scheme/Account?
Online Process
You can apply for an NPS account through the online platform of eNPS. Here are the steps to register for this scheme:
Visit the eNPS portal
Select the subscriber type – Individual or Corporate Subscriber
Select residential status – such as Indian Citizen or NRI
Choose either tier I NPS account or both tier I and tier II accounts for long-term savings (tier II account is mandatory)
Submit PAN information and bank details or PoP details
Also submit the scanned copy of your PAN Card together with a copy of cancelled cheque
Now, upload scanned signature and photograph
Finally, make the payment through net banking
Once the payment is done, you will get your PRAN (permanent retirement account number).
Offline Process
For the offline process of opening an NPS account, the interested individuals need to find a PoP (Point of Presence) such as a bank. The individual has to collect a subscriber form from the nearest PoP and submit your KYC documents together.
Now, pay your initial contribution of INR 500, your PRAN number will be issued. You can pay INR 250 per month or INR 1,000 per year as a minimum contribution.
You will receive a sealed welcome package with your account number and password with which you can manage your account. You may have to pay a one-time registration fee of INR 125 for this method.
Process to Log in to the NPS Account
To login to NPS, you need a 12-digit PRAN number
To get PRAN, the subscriber has to submit the required papers at the NSDL website
Now, visit the link https://enps.kfintech.com/login/login/ to use the login page of eNPS
If you forget password, you can get it by accessing the ‘Generate/Reset Password’ tab
Now, submit the PRAN number and your DOB (date of birth). Generate OTP and fill the captcha before clicking on the ‘Submit’ button
You will receive an OTP in your registered mobile. Enter the OTP to make your password valid
Now, on the login screen, enter your password and PRAN details to Login to the page
You will be redirected to the account page and can access it with ease.
How to Apply for an NPS Account Online and Offline?
NPS stands for National Pension System.
Yes, NPS scheme India is one such pension policy that allows NRIs to join the scheme. The plan is simple to acquire as there is hardly any paperwork that an NRI needs to produce additionally. However, if there is a change in your citizenship status, your NPS account may get closed.
There are various government and private banks that are best for NPS. For instance, the 5-year term HDFC pension fund with 17.14% return is one of the best NPS schemes that you can opt for. Although, there are many other choices available as well including the NPS scheme in post offices.
Here are some NPS benefits:
Policyholders of NPS (salaried people) can claim tax deduction on the NPS investment of up to 10% of salary, which include basic plus dearness allowance
Policyholders of NPS (self-employed) can avail tax deduction of up to 20% on their gross income. For tax exemption, the NPS Maximum limit is INR 1,50,000.
NPS is a pension cum investment scheme offered by the government of India available with a long-term saving avenue to support retirement plans of individuals through planned and market-based returns.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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