How To Open An NPS Account With SBI Online?

A glance at NPS

The National Pension System (NPS), formerly referred to as the New Pension Scheme, is a pension scheme open to all Indian citizens. An NPS account can be opened by any Indian citizen from the age of 18-65. At the age of 60, the NPS corpus matures but can be extended until the age of 70 by an account holder. After three years of account opening for particular reasons such as property investment, children's education or medical problem, partial withdrawals of up to 25 per cent of your contributions can be made from the NPS.

Eligibility required for SBI customers to open NPS account

For an applicant to apply for the SBI National Pension Scheme, the most significant eligibility requirements are:

• The individual must be between 18 and 60 years of age to open this account.
• Based on KYC requirements the documents needed to be submitted are: Address proof, Account opening form, Identity proof, and date of birth proof

In case you want to NPS Tier 1 account:

• The minimum deposit amount required to open the account is Rs 500
• Rs. 500 is the minimum amount payable for each contribution.
• At the end of the fiscal year, the minimum required account balance is Rs. 6,000
• During a year, there should be at least 1 minimum contribution.

In case you want to open NPS Tier II account

• The minimum deposit amount required to open the account is Rs 1000
• Rs. 250 is the minimum amount payable for each contribution.
• At the end of the fiscal year, the minimum required account balance is Rs. 2,000
• During a year, there should be at least 1 minimum contribution.

For an NPS Tier II account, or to enable a Tier II account, a person must first open an active Tier I account. For a joint account for Tier I and Tier II together, there is a minimum contribution of Rs. 1500 is required at the time of account opening. It is necessary to submit a cancelled cheque for the application form for a joint application or Tier II application.

Types NPS accounts that SBI customers can open

Tier I account: This account bears a tax allowance of up to Rs 1.5 lakh per annum under Section 80C and up to Rs 50,000 per annum under Section 80CCD (1B). 40 per cent of the corpus is tax-free and can be withdrawn at retirement at 60 years of age. Another 40 per cent will be used in order to purchase an annuity. The 20 per cent balance will either be used to obtain an annuity or can be withdrawn after tax is levied.

Tier-II account: NPS Tier II account is a retirement-cum-savings voluntary account that can only be accessed if you have a Tier I account. Depending on their preference, customers are welcome to contribute or withdraw their funds at any time. This account has no exemptions on taxation.

Pension benefit under NPS for SBI customers

This relies on your NPS funds' results. Your investments made in the National Pension System are invested and receive yields in assets such as equity or debt. You can use the accrued corpus to purchase an annuity until you reach the age of 60. Therefore, the particular pension amount you get relies on the size of the corpus and the existing annuity rates. For both Tier I and Tier II, the following are the main characteristics:

• Accounts can be opened at the Point of Presence-Service Provider (POP-SP) SBI bank branch that approves the application form along with the required KYC documents to generate the Permanent Retirement Account Number (PRAN) for subscribers enrolled with the Central Record Keeping Agency (CRA).
• Across all future transactions, a PRAN will be required for mentioning.

Procedure to invest in SBI NPS online and offline

SBI proposes two types of offline and online service for investing in the National Pension Scheme. For both these types of investment you must follow the below-covered procedure:

Via Offline

• Some banks have been authorised by the Pension Fund Regulatory and Development Authority (PFRDA) to serve as a point of presence for NPS deposits. SBI is one among the PFRDA-registered banks that is a POP for NPS subscribers.
• All the branches of the SBI operate as registered POP Service Providers and you can visit those branches in order to open an NPS account. You can visit https://npscra.nsdl.co.in/pop-sp.php page to find a list of SBI branches operating as POP-SPs, and select your state and city.
• It will indicate the approved branches and their addresses respectively. To open an NPS account, find the nearest SBI branch to visit. You will get the NPS registration form at the branch, which you need to fill out completely and submit to register for the NPS account.
• By clicking on this link https://retail.onlinesbi.com/sbi/downloads/NPS Editable Form.pdf you can also get the application form which must be downloaded, printed, filled and then submitted for account opening at the approved SBI branch.
• Attach your recent coloured passport size photograph and KYC documents along with the form to complete the application process for account opening. You are also required, in addition to submitting the registration form, to make the initial contribution to activate your NPS account successfully.
• Get the NPS Contribution Instruction Slip (NCIS) from the branch, fill it completely and submit it at the branch along with the minimum contribution. You can also download NCIS from the bank's website online using this address: https://sbi.co.in/documents/16012/138520/Contribution+Insutruction+Slip+%28NCIS+Form%29.pdf
• Once the authentication is completed, SBI will verify your documents along with the application form and open the account on behalf of you successfully.

Via Online

• The online investment application in the NPS system is open to the bank's current customers only.
• Customers using the bank's net banking service will be permitted to open SBI's National Pension Scheme account in an online method. They can visit www.onlinesbi.com and use their user ID and password to log in to their net banking account.
• On the homepage of their net banking account, they need to select 'NPS contributions' under the 'Payments and Transfers' tab.
• To contribute to the NPS scheme online, they will have to add a beneficiary. The contribution will be deducted from the savings account and credited in the NPS account on behalf of the customer.
• Your investment will continue until the age of 60 after you open the NPS account at SBI.

Procedure to open an NPS account with SBI online

Before starting the process you must keep some documents handy such as Aadhaar, PAN (both must be linked with your SBI account), scanned passport size photographs and signature.

• Visit the NPS portal and click on 'Registration' and select 'Individual'
• Now specify your Aadhaar and PAN number and then an OTP will be sent to your Aadhaar-linked mobile number.
• Now select the type of account from Tier I and Tier II according to your preference.
• Now enter the received OTP for authentication purpose and add the required personal details.
• Click on 'Submit' to generate an acknowledgment number.
• Now select SBI Pension Fund Pvt. Limited from the listed pension funds and then opt the mode of investment i.e. auto or active mode.
• Now appoint the nominee(s) by specifying the particulars of the individual who will receive the corpus in the case of your demise.
• You will be asked to upload a passport-size photograph if the Aadhaar Card is not used. If Aadhaar is used you will be only required to upload the scan copy of your signature.
• Now you will be required to make the initial contribution in order to generate a PRAN. The minimum contribution amount is capped at Rs 500 for Tier I and Rs 1,000 for Tier II. A PRAN will be allocated once the payment is made.
• Take a print of the completed form, paste the photo, sign it and post or mail the same to the CRA office within 90 days.

For more details: Contact CRA at 022-24994200 or write to CRA at NSDL e-Governance Infrastructure Limited, Times Tower, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013.