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A Guide: How to Open a National Pension Scheme Account Online

In addition to the pension benefits from this scheme, you also get tax benefits on the National Pension Scheme investments made each financial year.

studio18 Last Updated:June 27, 2023 15:01:19 IST

The National Pension Scheme (NPS) is an investment scheme launched by the government of India. As its name indicates, this scheme aims to offer pension benefits to the subscribers. If you have an NPS account, you can invest in different asset classes such as equity, government bonds, corporate bonds and Alternative Investment Funds (AIFs). Over the investment tenure, your investments will grow depending on the market movements and the performance of the assets in your portfolio. You can then enjoy pension benefits at the end of the investment period. 

In addition to the pension benefits from this scheme, you also get tax benefits on the National Pension Scheme investments made each financial year. They include a deduction of up to ₹1.5 lakhs u/s 80C and an additional deduction of up to ₹50,000 u/s 80CCD(1B) of the Income Tax Act, 1961.

To enjoy all these benefits and more, all you need to do is open a NPS account online and start investing for your future. Learn how to open an NPS account online to get started with your retirement planning today. 

A Step-by-Step Guide to Open an NPS Account Online

Previously, the process for opening a National Pension Scheme account was partially online and partially offline. However, the entire process can now be completed online itself, from the comfort of your home. The Pension Fund Regulatory and Development Authority (PFRDA) has authorised 3 central record keeping agencies (CRAs) for the purpose of opening NPS accounts. These CRAs include: 

NSDL (now Protean)CAMS KFintech

You can open your National Pension Scheme account with any of these CRAs. The exact process may vary slightly from one CRA to another, but the steps broadly remain similar. Here is a closer look at how to open an NPS account online. 

Step 1: Choose a central record keeping agency (CRA) and visit their website.

Step 2: Locate and click on the ‘Join NPS’ option or its equivalent.

Step 3: You will then be redirected to a new page, where you will have to enter various details. They include your name, PAN, date of birth, email ID, mobile number, subscriber type and more. 

Step 4: Provide all these details and click on the ‘Open NPS Account’ option or its equivalent, depending on the CRA you have chosen. 

Step 5: You will then receive an OTP on the mobile number you’ve provided. Enter and verify this OTP to proceed. 

Step 6: Next, you need to fill in the ‘Personal Details’ section, which includes information about your PAN, date of birth, gender, nationality, residential status, name to be printed, occupation and your marital status.

Step 7: Then, you need to complete the KYC procedure either with your PAN or Aadhaar. To complete the KYC with PAN, you will have to pay a one-time fee of ₹125 plus GST. There is no fee for completing the KYC with Aadhaar. 

Step 8: The next step is about completing your FATCA declaration, if applicable. 

Step 9: Once this is complete, you can choose which NPS account(s) you wish to open (either only Tier 1 or both Tier 1 and Tier 2 accounts).

Step 10: Then, enter your bank details as required, such as the name of the bank, the type of account, the account number and IFSC. 

Step 11: Add the details of your NPS account nominee. 

Step 12: Enter the other details related to your National Pension Scheme account, such as the amount you wish to contribute, the investment option (auto or active), and other such details. 

Step 13: Then, e-sign the application form by uploading your signature and an e-statement, passbook or cancelled cheque. 

Step 11: Next, choose whether you wish to receive a physical PRAN or an e-PRAN for your NPS account.

Step 12: Lastly, verify and confirm all the details you have entered. You will then receive an OTP, which you must submit before making the payment for the initial investment in your NPS account. 

This is the summary of how to open an NPS account online with the CRA of your choice. Ensure that you enter all the details required accurately and completely, so your account is approved without any hassle. In case of any errors, you will have to rectify them later on, or you may even have to submit your application once more from scratch. 

Conclusion 

All in all, this should give you the answer to how to open an NPS account online. The process is extremely simple and straightforward, as you have seen above. If you are yet to open an NPS account, it is best to do it sooner than later, so you can start saving up for your post-retirement life early on. This will give you the opportunity to tap into the power of compounding and build a solid retirement corpus, so you can enjoy adequate pension benefits therefrom. 

This is a Partnered Post.