Regular post-retirement income | Additional tax benefit on investments up to ₹50,000 u/s 80CCD (1B) - EEE Category | Regulated by PFRDA (Pension fund regulator under Ministry of Finance, Govt. of India) Invest Now

The National Pension System (NPS) is a government-backed savings scheme that aims to provide its subscribers with a steady source of income post-retirement. It is a voluntary scheme where subscribers can contribute either on a monthly basis or as a lump sum amount. 

 

One of the many advantages of the National Pension System is that the contribution you make towards it is eligible for tax benefits. You can claim a maximum of up to ₹1.5 Lakhs under section 80C and ₹50,000 under section 80CCD(1B) of the Income Tax Act, 1961 as a deduction from your total taxable income each year. 

 

The contributions made by NPS subscribers are pooled together into a fund and are invested in various diversified portfolios of market-linked instruments. Now that you have an idea of what NPS is, let’s take a look at how to open an NPS account. 

How to Open an NPS Account Online?

Earlier, you could only open an NPS account offline by physically visiting a bank or a post office branch. However, that’s not the case anymore. It is now possible to quickly open an account and invest in NPS online from the comfort of your own home. 

 

The National Pension System has empowered three Central Record Keeping Agencies (CRAs), namely, CAMS, Protean and KFintech to carry out the online NPS account registration process. Here’s a brief outline of the steps you need to follow. 

 

1. Steps to Open an NPS Account Online Via CAMS

  • Step 1: Visit the CAMS NPS online account registration portal. 

  • Step 2: Enter details such as your first name, PAN, date of birth, email ID and mobile number in the relevant fields and click on ‘Open NPS Account’. 

  • Step 3: Enter the OTPs that you receive on your email ID and your mobile phone. 

  • Step 4: Select the ‘Application Type’ and ‘Status of Applicant’ and click on ‘Save KYC Details’.

  • Step 5: Continue to fill out the application form and upload documents if necessary.  

  • Step 6: Choose the type of NPS account that you wish to open. You can open either a Tier-1 or a Tier-1 and Tier 2 NPS account. 

  • Step 7: Enter your bank details. 

  • Step 8: Enter the details of the nominee. You may choose to appoint more than one nominee. 

  • Step 9: Select the pension fund that you wish to invest in and whether you want it to be in auto mode or active mode. 

  • Step 10: Complete the FATCA declaration. 

  • Step 11: Make the first payment. 

 

That’s it. Your account will now be opened and you will receive a PRAN (Permanent Retirement Account Number) card and a welcome kit explaining the process you need to follow to log into your NPS account. 

2. Steps to Open an NPS Account Online Via Protean

  • Step 1: Visit the NPS online account registration portal of Protean eGov Technologies Limited. 

  • Step 2: Click on the ‘New Registration’ option.

  • Step 3: Enter the details in the application form and click on ‘Generate OTP’. 

  • Step 4: You would receive an OTP on the mobile number linked to your Aadhaar. Enter it in the respective field and continue. 

  • Step 5: Complete the online application form and upload any documents if necessary. 

  • Step 6: Once you’re done, click on the ‘Generate Acknowledgement No’ option. 

  • Step 7: Make a note of the acknowledgement number for future reference and submit the registration details. 

  • Step 8: A PRAN will be generated. Proceed to authenticate the application via Aadhaar OTP.  

 

Once the Aadhaar OTP authentication process is complete, your NPS account will be opened and you can proceed to log into the account using your user credentials.  

3. Steps to Open an NPS Account Online Via KFintech

  • Step 1: Visit the KFintech NPS account registration portal. 

  • Step 2: Enter details such as your full name, mobile number and email ID. 

  • Step 3: Accept the terms and conditions and click on the ‘Create Account’ button. 

  • Step 4: Enter the OTP sent to your mobile number. 

  • Step 5: Proceed to fill out the NPS account opening application form. You will be asked to enter your personal details, KYC details, FATCA declaration and investment details. 

  • Step 6: Once you’re done, upload all the relevant documents and proceed to make your first payment.

 

Upon successful payment, your NPS account will be opened and you will receive your PRAN via email.

Conclusion

With this, you must now be aware of how to invest in NPS online. As you can see, the account opening process is simple and hardly takes a few minutes to complete. 

 

However, if you’re more comfortable opening an NPS account offline, all you need to do is visit a bank or a post office branch. Once you’re there, simply fill out and submit the NPS account opening form along with the relevant documents. You may be asked to make a minimum contribution of at least ₹500 (₹1,000 in the case of a Tier-I account) excluding taxes and registration fees. 

 

Upon payment of the fees, you will get your Permanent Retirement Account Number along with a physical welcome kit containing details of how to log into your online NPS account. 

 

Investing in the National Pension System is a great way to bring financial security to your post-retired life. Once the NPS investment matures, which happens once you reach 60 years of age, you could choose to use the funds to purchase an annuity plan from a life insurer. This will ensure that you receive a steady stream of income, which can be used to take care of your expenses and lead a financially independent life.

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