New Delhi: The National Pension System (NPS) offers a reliable solution for retirement planning, ensuring a steady income during old age with reasonable market-based returns. Each subscriber is assigned a unique Permanent Retirement Account Number (PRAN) for their NPS account. Opening an NPS account is convenient through the eNPS portal, regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
An Aadhaar card is mandatory for account opening, with KYC verification done via OTP authentication from the registered mobile number. NPS matures at 60 but can be extended until 70, with only 60% of the corpus withdrawable at maturity, while the rest must be invested in annuity.
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There Are Two Types Of NPS Accounts:
Tier-I with withdrawal limitations and Tier-II with no withdrawal restrictions. Eligibility criteria include being between 18 and 65 years old. To open an NPS account online, log in to the NPS website, enter your Aadhaar or PAN details, choose the account type, authenticate with OTP, provide personal details, select pension funds and investment mode, upload a photo and signature, make payment, receive PRAN, and mail the form to the CRA office within 90 days. Offline, visit a Point of Presence (PoP), obtain an NPS subscriber form, fill and submit it with KYC documents photocopies.
Eligibility to Open an NPS Account:
Individuals aged 18 years or older but less than 65 years at the time of application are eligible to apply for an NPS account.
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Steps To Open An NPS Account Online:
Step 1: First of all Login to the NPS website and click on the Registration option.
Step 2: An OTP will be sent to your registered mobile number after entering your Aadhaar or PAN details.
Step 3: Then choose the type of account you want to open.
Step 4: Now enter OTP for authentications if you have chosen the Aadhaar option.
Step 5: If you have chosen PAN, you will be charged Rs.125 to verify your bank details.
Step 6: Now fill in your details and click submit. This is to generate your acknowledgement number.
Step 7: Choose from any eight pension funds, you also have to choose the investment mode and assign your nominees.
Step 8: Then upload the photograph and signature and make the payment.
Step 9: Now you will be allotted Permanent Retirement Account Number (PRAN).
Step 10: Finally download the form and get a printout.
Note: You have to mail it to the CRA office within 90 days with your signature and a photograph affixed.
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Steps To Open An NPS Account Offline:
Some banks and post offices serve as Point of Presence (PoP) locations where individuals can open NPS accounts.
Step 1: Visit the nearest POP-SP (Point of Presence Service Provider) and obtain an NPS subscriber form.
Step 2: Complete and submit the form along with photocopies of your KYC documents.
