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What is NPS?

National Pension System (NPS) is a scheme allows subscribers to contribute regularly in a pension account during their working life. On retirement, subscribers can withdraw a part of the corpus in a lump sum and use the remaining corpus to buy an annuity to secure a regular income after retirement. NPS investment is an easily accessible, low cost, tax-efficient, flexible, and portable retirement savings account.

Who can join National Pension Yojana?

Any Indian citizen (resident or non-resident), subject to the following conditions, can join the NPS Scheme: 
*On the date of application to the POP/POP-SP, the applicant must be in the age bracket of 18 – 65 years. 
*The applicant Indian citizen can either join the NPS as an individual or a corporate. However, this is subject to submission of all the required information and Know your customer (KYC) documentation.

Can an NRI open an NPS account?

Yes, An NRI can open an NPS account. However, the contributions made by NRI will be subject to regulatory requirements prescribed by RBI and FEMA. Moreover, if the Indian citizenship status of the NRI subscriber changes, their National Pension System account would be closed.

Can HUF, OCI and PIO join NPS?

No.HUF, OCI, and POI are not allowed to join the National Pension Scheme.

How do I open a NPS account?

You can open NPS account online. NPS is distributed through authorized entities called Points of Presence (POPs). One will have to open a NPS account with a POP to invest in NPS. The POP will provide the subscriber with all the help with regards to account opening. One can enrol online as an individual subscriber with Aadhar using the following steps: 
1)Visit: https://accountopening.investmentz.com/AcmiilService/Karvy/Registration 
2) Select Applicant Type: Individual Subscriber, Status of Applicant: Resident of India, and Select Account Type as per your preference (Tier 1 – is Pension Account & Mandatory) (Tier 2 – is Saving Account & Optional), Enter Aadhaar number and OTP 
3) Next, you fill all your details and make your initial contribution online. Please make a note of the Acknowledge Number given at the time of registration. With the help of acknowledge number, a subscriber can check the status of the application. 
4) Upon successful registration, the subscriber will receive a welcome kit within 10 working days. The welcome kit will contain: PRAN card (Permanent Retirement Account Number is a unique registration number allotted to each subscriber in the CRA system), subscriber information, and product information.

What uploads are required to be made for online opening of the Individual Pension Account under NPS?

An individual opening the Individual Pension Account using the online NPS platform (https://accountopening.investmentz.com/AcmiilService/Karvy/Registration) will have to upload the scanned photograph and signature in *.jpeg/* format with file size ranging between 4-12kb. However, this is optional for individuals opening a national pension scheme online with Aadhaar details.

Can I appoint nominees for the NPS Tier I and Tier II Account?

Yes. You are required to appoint a nominee while opening your NPS account online. This has a clearly specified section in the account opening form, which allows you to appoint up to 3 nominees for NPS Tier I and Tier II account. In case you make a nomination, you are required to specify the percentage of your savings that you wish to allocate to each of the nominees, with total aggregating to 100% of your total savings.

Can I change the Nominees for my National Pension Scheme NPS Accounts?

Yes. Nominees in your NPS Tier I account can be changed at any time after receiving your PRAN.

Does Subscriber need to deposit any minimum amount at the time of submission of NPS application form?

The following table provides the complete information on the minimum contribution requirements:

However, to avail of tax benefit u/s 80CCD (1B), you can deposit Rs. 50, 000 at once in your Tier I Account.

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