How to open NPS account?
Big news has come for those investing in the National Pension System (NPS). PFRDA has changed the rules for exit from NPS. Now non-government investors will have to invest only 20% instead of 40% to buy annuity, due to which they will be able to withdraw 80% of the money in lump sum. This facility will be available to those who invest for at least 15 years.
If you have not invested in NPS yet, then let us tell you that NPS is a scheme in which by investing for a long time you can prepare a good fund for retirement. Although many people want to invest in it, they are not clear as to who can open an NPS account and how to start it. Let us know the easy way.
Who can open NPS account?
The scope of NPS scheme is quite large. Central and state government employees can invest in this. Apart from this, employees working in private companies can also join NPS. People who work in the unorganized sector, like shopkeepers, doctors, lawyers, consultants or freelancers, can also avail the benefits of this scheme. Overall, any Indian citizen between the age of 18 to 70 years can open an NPS account, whether employed or not.
Documents required to open NPS account?
Some important documents are required to open an NPS account. You must have Aadhar Card, PAN Card and Address Proof. Along with this, an active bank account, mobile number and email ID is also necessary. Through these, your KYC is completed and information related to the account remains available.
Easy way to open NPS account online
- First of all, go to the websites of government authorized central recordkeeping agencies.
- There you have to enter your mobile number, PAN number and email ID.
- After this, your account gets processed as soon as you enter the OTP received on the mobile.
- After this, within some time you get PRAN (Permanent Retirement Account Number) and you can start investing.
Also read:
NPS exit rules changed, now you can withdraw up to 80% of the amount in lump sum, there will be no shortage of money on retirement.
How to open offline NPS account?
- For the online process you will have to go to your nearest Point of Presence (PoP).
- These could be banks, post offices or some government offices.
- After going there you have to complete the KYC process and deposit a minimum of Rs 500.
- After this your NPS account is opened and you get the PRAN number.
Special feature of NPS account
NPS account is completely portable. This means that even if you change job, city or start a business, your account remains the same. This is the reason why this scheme is considered very reliable for long term retirement planning.