The National Pension System (NPS) is a government-supported pension fund that helps individuals to establish a large pension benefit to cover the retirement life. Subscribers are recommended by the Pension Fund Regulatory and Development Authority (PFRDA), that regulates NPS, to link Aadhaar with NPS accounts. The initiative was introduced in 2004 by the Government of India to offer benefits for government employees and was introduced to everyone in 2009. A subscriber only needs to deposit a minimum of Rs 6000 to open a NPS account successfully.
During his or her working life, a subscriber can contribute regularly to a pension account, withdraw a portion of the corpus in a lump sum, and use the remaining corpus to purchase an annuity to maintain a regular flow of income during his or her retirement life. An Indian citizen aged 18 to 60 can join the NPS. An NPS account can be opened with institutions identified as Point of Presence (POP) by submitting the KYC norms. The majority of banks are registered as POPs, both in the private and public sector. There are also some financial institutions functioning as POPs. As the selection points, the approved branches of a POP, called point of presence service providers (POP-SPs) perform.
You must fill the registration form and submit it to the POP along with proof of identity and address. Hence, when it comes to KYC norms your Aadhaar Card must be linked with your NPS account in order to keep your account active. And for the same you must follow the below covered procedures to link your Aadhaar with your NPS account.
Steps for existing subscribers to link Aadhaar with NPS account
To link your NPS account to Aadhaar online, you have to follow these basic steps:
- Visit https://cra-nsdl.com/CRA/ and sign in to your account
- Click on the "Update Aadhaar/Address Details" option under the "Update Details" section
- Now enter your valid Aadhaar number twice in the required space and click on "Generate OTP"
- Click the "Proceed" icon to provide NSDL e-Gov permission to begin the process of linking.
- Now an OTP will be sent to your mobile number that is linked with Aadhaar.
- Authenticate the OTP by entering the same in the required space and click on 'Continue'
- Your Aadhaar will be linked with your NPS account after successful validation.
Steps for new subscribers to link Aadhaar with NPS account
At the time of opening a new NPS account a new subscriber can link his or her Aadhaar with NPS account. To link the NPS account to Aadhaar, he or she has to follow the steps listed below:
- Visit the NSDL e-NPS portal and click on the 'Registration' option
- In the space provided, choose the details and enter your Aadhaar number and click on 'Generate OTP'
- Accept the disclaimer and click on the 'Proceed' option.
- An OTP will be sent to your mobile number that is linked with Aadhaar.
- Enter the OTP in the required box and click on the 'Continue' option.
- Duly fill the NPS application form, initiate the payment and get your acknowledgement number.
- Confirm your registration specifics and create your PAN.
- e-Sign the application form and finish the procedure for opening a NPS account successfully.
Points to consider while linking your Aadhaar with NPS account
While linking your Aadhaar number with your NPS account, you must remember the following factors:
- You should compare the name listed in your PRAN (Permanent Retirement Account Number) with your Aadhaar specifics.
- Even if you have submitted Aadhaar at the time of subscription you need to undertake the Aadhaar-NPS linking procedure.
- Only via the Aadhaar OTP authentication process Aadhaar with NPS linking procedure is performed.
- In order to use this service, you must register your mobile number with your Aadhaar number. If you haven't done this, click on this link for the same.
- Only when the concerned Nodal officer accepts the application the Aadhaar seeding for government employees is done.
Advantages of linking your NPS account with Aadhaar
The linking between your NPS account and Aadhaar has a range of advantages. Below are some basic ones:
- With the assistance of Aadhaar authentication, establishing an NPS account online has become very simple.
- Aadhaar linking helps you to instantly complete KYC norms.
- In order to check their cash activities and allow taxpayers to seek tax benefits, the government has launched directives to link their accounts with Aadhaar.
- e-KYC prevents the subscriber from needless paperwork via the Aadhaar number and as Aadhaar OTP maintains real-time authentication.