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Are you wondering how to open a National Pension Scheme account? This article has all the information you’ll need to understand how to open an NPS scheme online and offline.
What is the National Pension Scheme?
National Pension Scheme or NPS is a contribution-based pension program offered by the Central Government. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). The objective of the scheme is to provide a retirement fund to all salaried and self-employed professionals.
How to Start an NPS Scheme?
There are two ways to open an NPS account:
- Online, by logging into the KFintech NPS website.
- Offline, by visiting a post office or a bank branch in your town or city.
How to Open a National Pension Scheme Account Online?
To open an NPS account online, you need to visit the KFintech NPS website. There are two routes through which you can register yourself for an NPS account. The first is Aadhaar-based verification, and the second is PAN-based verification.
Make sure your Aadhaar number is linked to your mobile number since you will receive an OTP to complete KYC authentication. In case you’re using your PAN Card, ensure that the details are linked to your savings account. Your bank will complete the KYC and application process on your behalf.
- Go to KFintech NPS website and click on ‘Join NPS’
- Fill in the required details and create the account
- Fill up all the mandatory details online
- Upload supporting documents
- Make the initial contribution while opening the account (Minimum amount of Rs.500 for Tier I and Rs.1000 for Tier II)
How to Start an NPS Scheme Offline?
If you don’t want to proceed with the online NPS account opening procedure, you can visit the nearest Point of Presence Service Provider (PoP-SP) to obtain the registration form. This service provider must be registered under PFRDA. The PFRDA has appointed certain financial institutions and banks to offer NPS scheme services to subscribers.
These PoPs offer NPS-related services, including subscriptions to the scheme and changing fund managers. To apply for the scheme, you need to fill out the application form and complete KYC verification by providing documents, such as address proof, Voter ID, PAN Card, Aadhaar Card, etc.
In case you are wondering how many NPS accounts can be opened, the answer is one. It is your choice whether you want to open the account online or offline, but in all, you can only have one NPS account.
Final words
The National Pension Scheme is one of the first vehicles an individual should invest in if they want to plan early for their retirement. The scheme is flexible, has lower risk levels, provides assured returns, and offers many tax benefits under Section 80C and Section 80CCD of the Income Tax Act. Interested individuals can complete the formalities to open an NPS account online or offline.
