How and where to open National Pension System (NPS) Account: You can open NPS account online and offline. Following are the details:
How and where to open National Pension System (NPS) Account: Any Indian citizen, including the non-residents, aged 18-60 years of age can join NPS. The applicant has to comply with the Know Your Customer (KYC) norms provided in the Subscriber Registration Form. The applicant must submit all documents required for KYC compliance.
Who cannot apply for NPS?
– Existing NPS account holders
– Un-discharged insolvent, that is persons who have been granted an “order of discharge” by a court.
-Individuals of unsound mind, that is persons who are incapable of understanding and making a rational judgement on the effect of the scheme on his/her self-interest.
Join NPS Online: All India Citizen Model
A citizen of India, who meets the eligibility criteria, can open the NPS account online by visiting: https://www.npstrust.org.in/content/open-your-nps-account-online
On the above link, the NPS provides links to two Central Record Keeping Agencies (CRA) – NSDL and Karvy. You can click on any of the two links to complete the registration process and also get all details and guidelines.
Contributions to NPS: You can make online contributions to your NPS account through Net banking/Debit Card/Credit Card and UPI.
Join Offline: All India Citizen Model
PFRDA has appointed entities called Point Of Present (POP) for servicing individual subscribers. The services the POPs provide include registration and acceptance of further contributions. You can collect the registration form for joining the NPS from any of the POP-Service Providers. You can collect the registration form from any of the Points of Presence – Service Providers (POP-SP).
You can locate you nearest POP visiting this link:
How to join: Government/Corporate Sector
For enrolling under Central Government/State government Sector, you can approach your HR Department/ Pay and Accounts Office (the Nodal Office for NPS). The formalities are completed as per the guidance of the Nodal Office, according to PFRDA.
How long to invest, or when to start NPS account?
To make the most of NPS, it is advisable to start investing as early as possible. This is because the accumulated wealth under NPS depends on the amount of contributions made and the income generated through its investment by PFRDA-registered Pension Funds.
PFRDA says in an official document, “The investment guidelines are framed in such a manner that there is minimal impact on the subscribers contributions even if there is a market downturn by a judicious mix of investment instruments like Government securities, corporate bonds and Equities.”
The NPS subscribers get the option to select any of the registered pension funds.
National Pension System: NPS Minimum Contribution
In NPS Tier I account, the minimum amount one can contribute at a time is Rs 500. However, the minimum contribution required to be contributed in a financial year is Rs 1000. Also, a subscriber needs to make at least one contribution in a financial year. This means, you can start your NPS account by contributing just Rs 500 for the first time but invest later to meet the minimum contribution requirement.
After the mandated limit, the subscriber can decide on the frequency of the contributions as per his/her convenience.
In NPS Tier II account, the minimum amount per contribution is Rs 250. There is no minimum balance required in Tier-II account.
Note: 1. There are certain charges that you need to pay while starting the NPS account and making subsequent contributions. You can the check charges on this link:” https://www.npstrust.org.in/content/charges-under-nps
2. The Tier I account is mandatory. Subscribers can voluntarily opt for Tier II account and use it as a savings facility.