By visiting the either NSDL or Karvy portal you can easily open an NPS account from the comfort of your home or office. But apart from this you can also choose for offline mode to open a NPS account which we are also going to cover below. But before we start it is essential to keep in mind that National Pension System (NPS) is considered one of India's leading retirement planning investment tool which comes with two choices - auto and active choice of asset allocation. Depending on the age of the investor, his / her investment gets listed under aggressive, moderate, or conservative funds under the auto choice.
The auto choice alternative implements a lifecycle-based approach which is designed to assist investors in focusing on their asset allocation. The participant needs to determine how much distribution he / she wants to put into various asset groups in the case of an active choice. Unlike under auto option, this distribution does not vary with the age and stays unchanged until the user chooses to adjust it. Hence, by following the below covered procedure you can also earn higher returns for your long-term goals by opening an NPS account.
Offline procedure to open an NPS Account
To open your NPS account offline, you must visit any point of presence-service provider's (POP-SP) office to submit the application form attached with KYC documents in physical mode. To comply with KYC, you must have your identity proof along with a passport size photograph. Along with the identity and resident proof such as Aadhaar Card, PAN Card, date of birth proof, you need to submit your bank account details also. In case of an NRI you need to furnish your Indian resident details in order to open an NPS account. You may pick any one of the two Central Recordkeeping Organizations to maintain your NPS account while registering. There are actually two Central Recordkeeping Agencies (CRAs) situated. The CRA acts as registrar and agent for transfer.
It will keep your records and make all of your transactions faster. Even if you are unable to include any of the documents specified in the application form, you can receive, as a last option, a certificate of identity and an address certificate authorized by a Member of Parliament, a Member of the Legislative Assembly, a Gazetted Officer. After opening the account, the CRA will give you a "Welcome Kit" with the unique Permanent Retirement Account Number (PRAN) card and other specifics. You will also get a Telephone Password (TPIN), and Internet Password (IPIN) to access your account.
Online procedure to open an NPS Account
As we discussed above you can open an NPS account by visiting the NSDL or Karvy website, where you have to register for your account based on Aadhaar or PAN authentication. You will need to create your eKYC file from Aadhaar portal for online registration based on Aadhaar. The NDSL site itself includes a reference to create it. Your confidential information, available with Aadhaar portal UIDAI, such as your name, gender, mobile number, address and photograph are automatically retrieved after your eKYC is submitted. The scanned copy of the cancelled cheque and photo must be uploaded online. The registration feature via your Aadhaar number is only accessible on the NSDL website, and is currently not accessible on the Karvy site. The second approach needs a PAN number. You can register for the NPS account online via either the NSDL or the Karvy portal. Within this process, the specifics of your PAN will be verified.
You can have a current bank or depository as the entity. You may include your bank details or you can even choose to have it validated by the depository where your demat account is maintained. You need to submit the scanned copies of your PAN, passport size photographs, signature specifics and a cancelled cheque under this method. Once you open the account online, you will need to maintain a minimum initial contribution of Rs 500 and Rs.1000 for Tier I and Tier II account respectively. You must send the physical copy of the hard copy out of the registration form to the CRA office within 30 days from the date of PRAN 's allocation, in case you want to e-sign the registration form or in case you are not able to e-sign it. You must sign the registration form manually and paste the photography on the form at the required space in case you have to physically submit the form.
A subscriber also has an option to generate the E-PRAN card instead of the physical form. A physical card is cost Rs 40 for NSDL, and Rs 39.36 if you choose Karvy as your CRA. However, the charges will drop for e-PRAN at Rs 4 for Karvy, and Rs 18 for NSDL. The welcome kit will also be sent you by email in case you opt for e-PRAN. During the registration process, non-resident Indian citizens who intend to open an NPS account must have certain additional documents, such as copy of the passport and current address of the overseas. However, an NRI is not eligible to open a Tier II account.