The National Pension System, popularly known as NPS, is an initiative of the Indian government helping citizens to save their money for their future. The scheme was initially offered to government employees in 2004, which was then later offered to everyone in 2009. NPS has an organised structure of collecting funds from the NPS account holder during their working life, which is then returned to the NPS account holder after their retirement.
The NPS account holder has to deposit a minimal amount of Rs. 6,000 every month. The government has issued guidelines to link Aadhaar with the NPS account for tax exemptions and financial data tracking.
The existing NPS account holders can link their Aadhaar with NPS account online by following these quick and simple steps-
Step 1: Login to your NPS account.
Step 2: Select the ‘Update Details’ option from the menu.
Step 3: Select ‘Address/ Aadhaar details' option mentioned in the sub-menu.
Step 4: Click on the ‘Update/Add Aadhaar number from the menu.
Step 5: Select the ‘Submit’ option.
Step 6: An OTP will be sent to your mobile number registered with NPS by UIDAI.
Step 7: Enter the OTP for verification purposes. Once the OTP is entered, the process to link Aadhaar with the NPS account is duly completed.
**Note - The name and other details mentioned on the Aadhaar card should match with the NPS account.
If you are a new user who is willing to open the NPS account, here is a step-by-step procedure to link your Aadhaar with your NPS account -
Step 1: Open the official website of NPS - enps.nsdl.com
Step 2: Select the ‘Registration’ option.
Step 3: Enter your Aadhaar card details and click to generate OTP.
Step 4: An OTP will be sent to your mobile number registered with NPS by UIDAI.
Step 5: Click on ‘Continue’.
Step 6: An NPS registration form will appear on the screen. Fill out all the details in the form and complete the payment process to generate an acknowledgement number.
Step 7: Submit your registration number to get your Permanent Retirement Account Number (PRAN).
Step 8: Complete the process with your e-signature to link your Aadhaar with your NPS account.
There are certain points you must keep in mind if you are planning to link your Aadhaar with NPS account -
The Aadhaar card details should match with the NPS account details.
Aadhaar card submission during NPS account registration will not lead to linking of the Aadhaar card and NPS account. There is a separate procedure one must follow to link your Aadhaar with an NPS account.
The OTP verification is the only authentication method to link your Aadhaar with your NPS account
It is mandatory to link your mobile number with your Aadhaar card before initiating the Aadhaar and NPS linking process.
There are various benefits one can avail by linking Aadhaar with an NPS account -
With the Aadhaar authentication process, the NPS account application procedure becomes quick and hassle-free.
Aadhaar seeding enables the subscriber to complete the formalities of Aadhaar KYC norms instantly.
It helps the NPS account holders to track their financial data and avail the exemptions in taxes offered by the Indian government.
If you have already completed the E-KYC procedure, the NPS account holder will not have to go through heavy paperwork to link their Aadhaar with your NPS account.
The NPS account holders can check their NPS account information via their Aadhaar card online. The account holders can check the information online via E- NPS.
The funds accumulated under NPS accounts use a compound interest formula. With low maintenance charges and compounding of interest, the final amount during withdrawal becomes lump-sum.
National Pension Scheme (NPS) was launched by the Indian government in 2004 that allows an individual to enjoy a stable source of income during the retirement period.
Yes, an Aadhaar card is mandatory for NPS as it helps the subscriber to track their financial data and avail the exemptions in taxes offered by the Indian government.
Yes, you can open an NPS account without Aadhaar.
The NPS KYC verification takes approximately 25-30 minutes.
OTP verification is the only method to link Aadhaar with the NPS account.
Government employees must get approval from their respective nodal officers for the Aadhaar and NPS linking process.
If an individual lies within the age group of 18 -65 years, he/she is eligible to open an NPS account.