To open a National Pension System (NPS) account, you can follow these steps:
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- Choose a Pension Fund Manager (PFM): Select a Pension Fund Manager from the list of authorized PFMs. These PFMs manage the investment of contributions made into your NPS account.
- Select a Point of Presence (POP): A Point of Presence is an authorized entity appointed by the PFRDA to act as a link between the subscriber and the NPS system. You can choose a POP based on convenience. It could be a bank, financial institution, or any other authorized entity.
- Fill out the Registration Form:
- Obtain the NPS registration form from the chosen POP or download it from the official NPS website.
- Fill out the form with accurate details such as personal information, nominee details, choice of PFM, investment preferences, etc.
- Provide KYC Documents: Attach copies of Know Your Customer (KYC) documents with the registration form. Commonly accepted documents include:
- Proof of Identity (such as Aadhar card, PAN card, passport, etc.)
- Proof of Address (such as Aadhar card, passport, utility bills, etc.)
- Passport-sized photographs
- Submit the Form: Submit the filled-out registration form along with the required KYC documents to the chosen POP. Ensure all information provided is accurate and up-to-date.
- Make the Initial Contribution: Make the initial contribution towards your NPS account. The minimum contribution amount varies depending on the PFM and the type of account (Tier-I or Tier-II).
- Receive PRAN: Once the application is processed and approved, you will be issued a Permanent Retirement Account Number (PRAN). This PRAN serves as a unique identifier for your NPS account.
- Choose Investment Options: After receiving your PRAN, you can log in to the NPS website or contact your POP to select your investment preferences. You can choose between Active and Auto choice options, which determine how your contributions are invested.
- Manage your Account: Keep track of your NPS account regularly. You can make additional contributions, change your investment preferences, or manage other aspects of your account online or through your POP.
- Stay Informed: Stay updated with any changes or developments in the NPS system, including regulatory updates, performance of your chosen Pension Fund Manager, and any updates regarding tax benefits or withdrawals.
It’s important to note that the process may vary slightly depending on the POP and the PFM chosen. Make sure to carefully read and understand all terms and conditions before opening an NPS account.