Step-by-Step Guide on how to open an NPS Account
The National Pension Scheme (NPS) is a voluntary, contribution-based retirement product. It’s a government-backed scheme that falls under the jurisdiction of the Pension Fund Regulatory and Development Authority (PFRDA).
It’s a long-term, retirement investment option that helps you build your retirement funds. The NPS is a market-linked product, and you need to make voluntary contributions to the funds until you turn sixty.
Who can open an NPS Account?
All Indians, residents and non-residents, between the age group of 18 and 60 years can open an NPS Account. All you need to have are - an active bank account with Internet Banking facility, a mobile number, e-mail ID and required identification documents for NPS Account opening.
Let’s look at a complete step-by-step guide on how to open an NPS Account in India.
Where to open an NPS Account?
There are two methods of opening an NPS account.
Method 1: Visit a Point of Presence Service Provider (PoP) (SP)
To enrol for the National Pension Scheme, visit the nearest ICICI Bank with an enabled NPS service. You can find the complete list of branches that offer this facility here. Make sure to carry the required KYC documents (ID proof and address proof) mentioned in the PFRDA guidelines.
Method 2: Register and activate your NPS Account online
Earlier, starting your NPS Account was a lengthy, time-consuming process. Now, with the introduction of the eNPS portal, you can complete the entire process online easily.
How to open an NPS account online?
Requirements to open NPS account online – You need to have an Internet Banking account at any one of the 17 banks registered at the National Securities Depository Limited. If your PAN is linked to your bank account, you can simply log in to the eNPS portal to begin registration. Your bank will handle the other KYC details for you.
Earlier you could open an NPS Account using your Aadhaar number. But, this facility has been disabled now and you require PAN to register.
Before you begin the registration process, make sure you have the following details handy.
- PAN number
- Netbanking details
- Scanned passport size photograph (size 4 to 12kb and in jpg format)
- Scanned image of your signature (size 4 to 12kb and in jpg format)
10 steps to open an NPS Account online
Step 1 – Log into the eNPS website. Choose National Pension Scheme > Registration and click on Individual.
Step 2 – Enter your PAN and other details like name, age, address, e-mail ID and phone number. You will be sent an OTP to the mobile number linked with your PAN for verification.
Step 3 – Choose your preferred account type. The online NPS Account opening lets you open only a Tier I account or both a Tier I and Tier II account. You cannot open a solo Tier II account.
Step 4 – Choose your Pension Fund Manager. The contributions you make to your NPS Account, are managed by eight pension fund houses. You can choose your preferred Pension Fund Manager from the list.
Step 5 – Choose your investment mode. The two modes are:
- Auto mode – Equity allocation is done automatically for you and it gets rebalanced based on your age.
- Active mode – You are in control of the equity allocation, and you decide how you want to split it up among equities, corporate and government debt funds. If you choose the active mode, you can decide how you want to spread your corpus among different fund classes.
Step 6 – Assign nominees. Mention the details of your nominees, who receive your corpus after your death. You can also decide how you want to share the corpus among different nominees.
Step 7 – Upload the required documents. You will have to upload scanned copies of your PAN, passport size photograph and digital signature. Make sure that these documents have a size lesser than 12kb and are in jpg format.
Step 8 – To complete the registration process, you have to make an initial contribution to your NPS Account. You can use your Internet Banking, Credit or Debit Cards to make this payment. The minimum contribution is Rs 500 for Tier I Account and Rs 1,000 for Tier II Account.
Step 9 – Once your payment is made, you will get an auto filled-in copy of the registration form. Download this form and take a print out of it.
Step 10 – Your Permanent Retirement Account Number (PRAN) will be generated and your PRAN kit – your PRAN card, scheme documents – will be sent to your registered address. To complete the registration, make sure to print the downloaded form, paste your photo, attach the required document copies and e-mail it to the Central Recordkeeping Agency (CRA) within 90 days of opening your eNPS account. Failing to do this will get your NPS Account frozen.
Make subsequent contributions and start building your retirement wealth
Once you get your PRAN, you can log in to the eNPS portal or use the NPS mobile app to make contributions to your NPS account.
If you have further queries on how to open the NPS Account, please contact ICICI Bank’s investment experts.
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