Changes have been made to the NPS or the National Pension Scheme to make it a more attractive government-backed tool for retirement savings. In December, the government decided to make the 60 percent corpus withdrawn from an NPS account on retirement, tax free. Earlier, only 40 percent out of the 60 percent share was tax-free and the rest (20 percent) was taxable.
It is easy to make contributions towards the NPS account once opened. You can do it online using net banking, debit card or credit card. You can also do it over NPS app.
How to open and manage NPS account online?
To open, access or make contributions towards NPS online, you need to visit the eNPS website. You just need your PAN and bank details. However, make sure your bank account is enabled with internet banking facility and has your mobile number as well as email ID registered.
- You can open an NPS account by visiting enps.nsdl.com
- A one-time fee as KYC authentication charge of up to a maximum of Rs. 125 (plus applicable taxes) will be recovered by your bank (known as POP or Point of Presence).
- You need to file all the mandatory details on the eNPS website and make sure it matches the details available with the bank. This is because the KYC process will be performed by the bank. In case of rejection of the application, contact your bank.
- The applicant will be required to activate the PRAN or Permanent Retirement Account Number within 30 days. It is the identification number for NPS accounts that helps you set up and manage the existing NPS account online.
- You can also activate the Tier-II portion of the account over e-NPS.
How to make contributions to NPS account online?
You can make NPS contribution via netbanking or using cards.
- Login into your NPS account at cra-nsdl.com
- Select "Transact Online" tab and then select "Contribute Online."
- It will direct you to the eNPS website. You can also choose to go to the eNPS website directly to make the payment.
- You will be asked to enter your PRAN for verification purposes. It will be verified by entering the OTP sent to the subscriber's registered e-mail address or mobile number.
- Select the type of account (Tier-I or Tier-II). All NPS subscribers have to maintain the Tier-I account with a minimum contribution of Rs 1,000 towards it.
- You will be able to choose your payment options-credit card, debit card or internet banking.
- Netbanking: Rs 0.60 per transaction + GST
- Debit card: 0.80 percent of the transaction amount + GST. Note that payment through debit card is only allowed up to the limit of Rs 2,000.
- Credit card: 0.90 percent of the transaction amount + GST
- POP's (bank) trail commission at 0.10 percent (subject to a minimum of Rs 10 and a maximum of Rs 10,000 per transaction).
Contributions made will be credited to the account in T+2 days (trade date+2 working days).
You can directly make your payments over the app without having to login by just entering the PRAN. You will need to login (one-time) with PRAN and the PIN received with PRAN in the NPS welcome kit.
You can reset the password or change account details using the app with the help of OTP.