National Pension System (NPS) is a voluntary retirement savings scheme. It is designed to enable systematic savings during the subscriber’s working life.
You can open the NPS account at enps.nsdl.com, provided you have an account in any of the 17 banks empanelled with the National Securities Depository Ltd (NSDL) and is linked to your PAN. The application will be processed if everything is in order and your KYC is done. Even investors whose Aadhar card is linked to the bank account and mobile number can apply online.
After applying, a one-time password is sent to the registered mobile number for validation. After validation, submit the online application.
A Permanent Retirement Account Number (PRAN) will then be allotted to the investor. This PRAN can be used to invest in the scheme.
Through investments in NPS, an additional tax deduction of up to INR 50,000 under Section 80CCD (1b) can be availed by the investor.
The NSDL also allows payments with credit cards. However, debit and credit card users have to pay 1% of the investment as charges to the payment gateway. Picking the right pension fund is critical for investments in the NPS, as it cannot be changed for at least a year.
- For account opening, you need to have:
- Mobile number, email ID, active bank account with net banking enabled
- Aadhar and PAN card
- KYC verification
- Filling up mandatory details online
- Scan and upload photograph and signature (optional if verification is through Aadhar)
- Minimum INR 500 for online payment
- Submission of the form to CRA after printing the form, pasting the photograph and affixing the signature.
All Indian Citizens (including NRIs) between 18 – 60 years are eligible for opening of the Individual Pension Account under NPS. Avail the opportunity to build the required retirement corpus. Get a thorough planning of your finances now, the secure your financial future and reach all your financial goals. For assistance and expert advice, approach online fiduciary-like ArthaYantra.