How does one invest in NPS online?

The National Pension System (NPS) is governed by the Pension Fund Regulatory and Development Authority (PFRDA). This scheme/system allows individuals to contribute towards their retirement fund. Investing in NPS has become very easy due to the easy online access.

TIn this article, we will explain how to invest in NPS online.

In order to build a retirement fund for working professionals, the Government of India has launched the National Pension Scheme/System. It is a unique Pension Scheme/System that allows individuals to effectively plan for their retirement through safe and reasonable market-based returns.

Types of NPS Account:

There are two types of NPS Accounts-

Tier I This type of NPS Account is mandatory with a controlled withdrawal benefit. You can invest in an NPS Tier I Account with a minimum investment of Rs 1,000 in a year. However, subscribers are allowed to make partial withdrawals post the completion of 3 years. Subscribers can withdraw only 25% of their self-contribution to fund their personal or business requirements.

Under Section 80CCD (1), an individual can avail a tax deduction of up to Rs 1,50,000 by contributing towards an NPS. In addition to this, subscribers can also avail a deduction of up to Rs 50,000 on NPS contribution under Section 80CCD (1B).

Tier II In case of the Tier II Account, subscribers are allowed to make unlimited withdrawals. However, a subscriber can open this Account only if he/she has a Tier I Account. The Tier II Account does not provide any tax benefits. A subscriber is required to make an initial contribution of Rs 1,000 for a Tier II Account at the time of registration.

Things to keep in mind about NPS:

Anyone between 18 to 70 years of age can open an NPS Account online
NPS offers subscribers the flexibility to select their investment options
Earn attractive market-linked returns
Account holders can operate their Account from anywhere in India
Subscribers can switch between different funds
Account holders can select or change their investment pattern, Fund Manager and Point of Presence (POP).

How does one contribute to an NPS online?

You can apply for and contribute to NPS easily online. Let’s take a look at how you can contribute to NPS online.

You can enrol to an NPS using the below channels:

Internet Banking

Select ‘NPS’ from the ‘Investment and Insurance’ tab
Step 2: Under the ‘Corporate Subscriber Model’, select the company name from the drop-down, enter your personal details, nominee details and select ‘Asset Allocation’
Step 3: Upload your photo and signature and then click on ‘Submit’
Step 4: Complete the OTP verification. OTP will be received on the registered mobile and e-mail ID
Step 5: Instant PRAN will be generated on successful document upload and verification.

iMobile Pay

Step 1:Select ‘PPF/NPS/Gold Bond’ from the ‘Invest and Insure’ tab
Step 2: Click on ‘Instant NPS’ > Click on ‘Let’s Get Started’
Step 3: Under the ‘Corporate Subscriber Model’, select the company name from the drop-down, enter your personal details, nominee details and select ‘Asset Allocation’
Step 4: Upload your photo and signature and then click on ‘Submit’
Step 5: Complete the OTP verification. OTP will be received on the registered mobile and e-mail ID.
Step 6: Instant PRAN will be generated on successful document upload and verification.