How to Open an NPS Account with Aadhaar?
An NPS or New Pension Scheme account is a social security account initiated by the Government of India that provides a regular stream of income to individuals after retirement. The account provides a steady income to the account holder through market-linked returns and is available to all Indian citizens.
Initially, opening an NPS account required one to fill out the Permanent Retirement Account Number (PRAN) application form and submit the form and KYC documents to a Point of Presence-Service Provider (POS-SP).
The above process used to be cumbersome, as the prospective account holder would have to visit an authorised bank branch, after which the PRAN number would be generated, all of which takes a lot of time.
In the case of online applications, too, the applicant was required to take a printout of the form, affix a recent photograph, sign it, and mail it to the Central Recordkeeping Agency (CRA) within 90 days of being issued the PRAN.
To speed up the process and make it easier for individuals to open an NPS account, a circular stating that these accounts could be opened online without needing to visit a branch was released by the PFRDA (Pension Fund Regulatory and Development Authority).
According to this circular, individuals who wish to open an NPS account can do so online, and the verification of identity would be through the Aadhaar card and the applicant's e-signature.
This not only simplifies the process of opening an account but also ensures that the information entered into the database is correct, as the individual would have to verify it before authorising the digital signature.
How to open an NPS account using your Aadhaar details on the eNPS platform?
Individuals can open an NPS account both online and offline as per the PFRDA circular. Individuals who wish to open an NPS account online can follow the steps listed below:
- Visit the e-NPS portal to open an NPS account online using Aadhaar.
- You will have to click on 'National Pension System' and then on the 'Registration' option.
- Select the category of account opening - 'Individual Subscriber' or 'Corporate Subscriber' category.
- After that select 'Citizen of India' or 'Non-Resident of India (NRI)' or 'Overseas Citizen of India (OCI)'.
- Click on 'Aadhaar Online/Offline KYC' option and select the 'Tier types' for the opening of an account.
- Select and provide 'Aadhaar' (12-digit) or 'Virtual ID' (16-digit) number and click 'Generate OTP.'
- After submission of OTP, details such as your name, gender, date of birth, address, etc. will be retrieved from Aadhaar records.
- Make an NPS contribution and complete the digital registration process through digital authentication.
How to Open an NPS Account Offline?
Individuals can also choose to open their NPS account offline by visiting a Point of Presence (PoP) entity. These are banks that have been authorised by the PRFDA to assist and generate PRAN numbers.
Individuals who wish to apply offline can follow the steps listed below:
- Visit an authorised bank branch and fill in the application form.
- Submit the necessary KYC documentation along with the filled-in application form and pay the registration fee.
- Once the application has been processed, the PRAN card will be sent by post to the address mentioned in the form.
As seen above, the procedure for applying for an NPS account has been simplified by making the process online, thereby reducing the amount of paperwork and the time taken to process applications.
Aadhaar Resources
- Unique Identification Authority of India
- Aadhar Card Download
- Aadhar Card Status Update
- Aadhar Card Update
- Documents Required for Aadhar
- Link Aadhaar With Mobile
- Aadhar Password
- Register Mobile Number with Aadhaar
- Aadhar Card Correction Form
- Aadhar Enrolment Centers
- Aadhar Customer Care Numbers
- Check Aadhar Status
- Aadhar Verification
- Lost Aadhar Card
- Aadhar Card Online Registration
Disclaimer
FAQs on How to Open an NPS Account With Aadhaar
- What is NPS?
The Indian government launched the National Pension System (NPS), a pension cum investment scheme, to give its citizens security in old age. It offers a profitable long-term savings option with a safe, regulated market return. The Pension Fund Regulatory and Development Authority (PFRDA) oversees the NPS.
- Can I open an NPS account online?
Yes, you can open an NPS account online by visiting the official website of one of the Central Recordkeeping Agencies (CRA).
- Is updating PAN and linking Aadhaar necessary for NPS accounts?
Yes, according to the government's modification of the PMLA regulations, NPS accounts must be linked to Aadhaar by 31 December 2017.
- When I move or change jobs, do I have to reopen my NPS account?
No, you don't have to reopen your NPS account if your job or location changes. You can use your NPS account from any location in the country, irrespective of your employment status or geographic location.
- What is the process for Nodal offices under NPS that involves user authentication based on Aadhaar?
The Central, State, CAB, and SAB Nodal offices under the government sector are permitted to log in to the CRA system (CRA & NPSCAN) using Aadhaar OTP and 2-factor authentication (User ID and Aadhaar Number). To approve the requests made by the underlying office, the Oversight office (PrAO/DTA) must first link their Aadhaar against their respective User ID.
- What is the purpose of the Aadhaar-based login process?
By combining the 2-factor authentication process with the existing User ID and password-based login procedure used by Nodal offices, it is possible to reinforce the security measures that are currently in place when gaining access to the CRA system.
- Can I generate PRAN online?
Yes, either Aadhaar- or PAN-based e-NPS can be used to generate PRAN online. After that, you must submit Form IIS-1 (Inter Sector Shifting Form) to transfer your PRAN to the related Nodal Office.
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