The NPS Scheme is an initiative taken by the Government of India which is defined as voluntary retirement scheme and has been designed to provide regular savings over a long period of working years of the subscriber.
Usually, the process of opening an NPS account is to fill out the Permanent Retirement Account Number named PRAN application form and submit the form and KYC documents to a service provider.
The above mentioned process is considered as Cumbersome, as the subscriber needs to visit the bank directly to fill out the PRAN application form,after which the PRAN number would be generated, all of which are time consuming and stressful.
If you’re applying online, you need to fill out the application form, take a printout, affix the photograph, place your signature and mail it to CRA within 90 days of being issued the PRAN.
To speed up the process and to minimize the legwork, the Pension Fund Regulatory Authority states that the National Pension Account can be opened online and the verification process will be done through the Aadhar card and e-signature.
This method not only simplifies the process but also ensures that the information stored into the database is accurate. That’s it reduces human errors.
Process to Open an NPS Account Online with Aadhar Card
- For the ones who have a Demat account and an account with authorized banks can directly visit the bank’s website and apply for an NPS account online.
- You can also visit the official NPS portal and select registration tab to subscribe NPS scheme.
- Enter the Aadhar card number in the required field and also enter your registered mobile number.
- Enter all the required details in the respective field and the details include: Your Name, Bank Account Number, Contact Information etc.
- Upon entering all the information, you need to cross check all the entered details and choose an investment plan.
- Afterselecting the type of investment plan, upload the scanned copy of signature as per your signature in the Aadhar card.
- The photograph will be taken from Aadhar card database and will be added automatically.
- After adding both your signature and your photograph, a One Time Password will be sent to your registered mobile number for authentication purposes.
- You need to enter the OTP Password in the respective field.
- You need to pay an initial amount to the account through debit/credit/net banking.
- Once all the above steps are done, an instant PRAN number will be given to you and the PRAN scheme subscribing letter will be dispatched to your registered address shortly.
These are steps to perform while opening an NPS account online. Now we are going to discuss on “Offline Method”.
How to Open an NPS Account Offline
- Visit the nearest authorized bank and fill out the application form and submit it.
- For those with eKYC, the application form along with all the supporting documents will be send to the CRA.
- The Point of Sale provider will create an e-signature for you and this process will cost Rs. 5/-
- Once the e Sign is generated, the bank will send the details to the CRA and the subscriber will receive the PRAN number shortly.
Fund Options Available for NPS
National Pension System has 3 fund options and these include:
- The Corporate Funds.
- The Equities.
- The Government Securities.
Why You Need to Choose an NPS Scheme
When you invest in the NPS scheme, you will be allocated with PRAN number (Permanent Retirement Account Number) through CRA (Central Record Keeping Agency).
Along with the PRAN number, you will also be provided with a username and password.
Using this detail, you can do online transactions too.
This NPS investment plan provides easy investment options for seniors and helps them to make seamless transactions with least efforts.