National Pension System

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Pension plans provide financial security and stability during old age when people don’t have a regular source of income. Retirement plan ensures that people live with pride and without compromising on their standard of living during advancing years. Pension scheme gives an opportunity to invest and accumulate savings and get lump sum amount as regular income through annuity plan on retirement.

To provide social security to more citizens the Government of India has started the National Pension System.

Government of India established Pension Fund Regulatory and Development Authority (PFRDA)– External website that opens in a new window on 10th October, 2003 to develop and regulate pension sector in the country. The National Pension System (NPS) was launched on 1st January, 2004 with the objective of providing retirement income to all the citizens. NPS aims to institute pension reforms and to inculcate the habit of saving for retirement amongst the citizens

Initially, NPS was introduced for the new government recruits (except armed forces). With effect from 1st May, 2009, NPS has been provided for all citizens of the country including the unorganised sector workers on voluntary basis.

Additionally, to encourage people from the unorganised sector to voluntarily save for their retirement the Central Government launched a co-contributory pension scheme, ‘Swavalamban Scheme– External website that opens in a new window‘ in the Union Budget of 2010-11. Under Swavalamban Scheme– External website that opens in a new window, the government will contribute a sum of Rs.1,000 to each eligible NPS subscriber who contributes a minimum of Rs.1,000 and maximum Rs.12,000 per annum. This scheme is presently applicable upto F.Y.2016-17.

NPS offers following important features to help subscriber save for retirement:

  • The subscriber will be allotted a unique Permanent Retirement Account Number (PRAN). This unique account number will remain the same for the rest of subscriber’s life. This unique NPS can be used from any location in India.
    • Tier I Account: This is a non-withdrawable account meant for savings for retirement.
    • Tier II Account: This is simply a voluntary savings facility. The subscriber is free to withdraw savings from this account whenever subscriber wishes. No tax benefit is available on this account.

Who can join NPS ?

Any individual between the age of 18 and 60 years can open a pension account under NPS through eNPS using one of the following options.

Option 1 – Registration using Aadhaar

You must have an ‘Aadhaar number’ (with a mobile number registered with Aadhaar)

Your KYC in NPS will be done using Aadhaar through One Time Password (OTP) authentication

OTP for the purpose of authentication will be sent to the mobile number registered with the Aadhaar

Your demographic details and photo will be fetched from Aadhaar database and populated in online form

You need to fill up all the mandatory details online

You would be required to upload your scanned signature (in *.jpeg/*.jpg format having file size between 4kb – 12kb) as part of the registration process

In case, you wish to replace the photo obtained from Aadhaar, you may upload a scanned photograph

You will be routed to a payment gateway for making the payment towards your NPS account from Debit/ Credit card or Internet Banking

Option 2 – Registration using PAN (KYC verification by Bank)

You must have a ‘Permanent Account Number’ (PAN)

Bank account with the empanelled Bank for KYC verification for subscriber registration through eNPS

Your KYC verification will be done by the Bank selected by you during the registration process.Name and address provided during registration should match with bank records for KYC verification. If the detail don’t match , the request is liable for rejection.In case of rejection of KYC by the selected Bank, applicant is requested to contact the Bank

You need to fill up all the mandatory details online

You need to upload your scanned photograph and signature in *.jpeg/*.jpg format having file size between 4kb – 12kb

You will be routed to a payment gateway for making the payment towards your NPS account from Internet Banking

In addition, NRI subscribers should,

Select the Bank Account Status i.e., Non-Repatriable account or Repatriable account

Provide the NRE/NRO bank account details and upload scanned copy of passport

Select the preferred address for communication i.e., Overseas Address or Permanent Address (communication at overseas address would entail extra charges)

After Permanent Retirement Account Number (PRAN) is allotted, subscriber can use one of the following options:

Option 1 – eSign

For Tier I PRANs generated through Aadhaar, you have option to eSign the document by following the below mentioned steps:

Select ‘eSign’ option in the eSign / Print & Courier page

OTP for the purpose of authentication will be sent to your mobile number registered with the Aadhaar

After Authentication of Aadhaar, Registration form will be successfully eSigned

Once a document is eSigned, you need not send the physical copy of form to CRA

eSign charge ₹ 5 plus GST

Option 2 – Print and Courier

Select ‘Print & Courier’ option in the eSign / Print & Courier page

You need to take a printout of the form, paste your photograph (please do not sign across the photograph) & affix signature

You should sign on the block provided for signature

The photograph should not be stapled or clipped to the form

The form should be sent within 90 days from the date of allotment of PRAN to CRA at the following address or else the PRAN will be ‘frozen’ temporarily

  • Central Recordkeeping Agency (eNPS)
  • NSDL e-Governance Infrastructure Limited,
  • 1st Floor, Times Tower,
  • Kamala Mills Compound, Senapati Bapat Marg,
  • Lower Parel, Mumbai – 400 013

Processing of subsequent contribution:

All existing subscribers (registered through both online and offline mode) can contribute in Tier I & Tier II account using ‘eNPS’. To contribute online, you need to

Have an active Tier I / Tier II account

Authenticate your PRAN using the OTP sent to your registered mobile number

Pay through your Debit / Credit card or use Internet Banking option.

POP Service Charges will be applicable on the contribution amount @ 0.10% (subject to minimum of ₹ 10 and maximum of ₹ 10,000 per transaction). This service charges will not be applicable for subscribers registered in eNPS through Aadhaar

Processing of APY Application:

Any individual between 18 -40 years (39 years 364 days) can initiate opening an Atal Pension Yojana account through eNPS platform using following process:

Registration using Aadhaar

You must have an ‘Aadhaar number’ (with a mobile number registered with Aadhaar)

Select the bank where you have an existing saving bank account

Enter savings bank account number for selected bank

OTP for the purpose of authentication will be sent to the mobile number registered with the Aadhaar

You need to fill up all the mandatory details online

APY PRAN allotment will be subject to verification of details and upload of subscriber registration file by bank.

APY registration through eNPS, first contribution is mandatory. Kindly keep a sufficient balance in your savings bank account to avoid rejection.

eSign the document

Request for APY through Aadhaar, you have to eSign the document by following the below mentioned steps:

Select ‘eSign’ option in the eSign.

OTP for the purpose of authentication will be sent to your mobile number registered with the Aadhaar

After Authentication of Aadhaar, Registration form will be successfully eSigned.

Once a document is eSigned, you need not send the physical copy of form to CRA

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