Open NPS tier II account online. Here’s how
New Delhi: National Pension System or NPS, is one of the most popular long-term investment instruments. It is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers to make investments through systematic savings during their working life. There is no maximum limit on investment in NPS but minimum Rs 1,000 investment per annum is required to keep the NPS account active.
NPS accounts: NPS has two kinds of accounts- Tier I and Tier II. While Tier I is the default account for tax benefit purpose, Tier II account is optional. When you open an NPS account, Tier I account is opened as default and one can avail tax benefit on Tier I investment.
The subscriber can either apply for an NPS account by visiting a Point of Presence (PoP) or do it online through the e-NPS website. NPS Subscribers with Tier I account can open a Tier II account. To open an NPS individual account online, one should have the mobile number, email id, an active bank account with internet banking facility, Aadhaar number with a mobile number registered with it, scanned copy of photograph and a cancelled cheque.
Here’s how NPS Tier II account can be opened online:
- Step 1: Visit the electronic National Pension system (eNPS). Click on “Tier II activation” tab
- Step 2: A window opens which asks for details like Permanent Retirement Account Number (PRAN), Date of Birth and PAN.
- Step 3: Click on ‘Verify PRAN’ to receive OTP
- Step 4: Enter OTP and proceed
- Step 5: Fill up bank details and click on ‘Validate Aadhaar’
- Step 6: Click on ‘continue’. An acknowledgement number will be generated along with the name and a time stamp
- Step 7: Choose a pension fund manager and investment option auto or active choice
- Step 8: Enter personal details, verify it and click on “Save & Proceed”.
- Step 9: Update nominee details, upload a cancelled cheque of account, photograph and specimen signature
- Step 10: Make the first contribution towards NPS subject to a minimum investment of Rs 1,000
- Step 11: E-sign the application using Aadhaar number
- Step 12: Download the application, put signature on the downloaded form and send it to the head office of NSDL
It is worth mentioning that NPS account can only be opened in a single name, however, the rules allow you to appoint a maximum of three nominees for your NPS account. The nominee can be appointed at the time of opening the NPS account. An NRI can open an NPS account. Contributions made by NRI are subject to regulatory requirements as prescribed by RBI and FEMA from time to time. If the subscriber’s citizenship status changes, his/ her NPS account would be closed.