How to open New Pension System (NPS) Account Online

NPS account can now be open by an individual in leading Indian banks like SBI, Axis Bank or ICICI. New pension system was introduced by government of India as a help for old age savings for senior citizens. These are the authorized banks and private sectors companies where you can open the New Pension Scheme account:

  • SBI (Pension Funds Ltd)
  • Axis Bank
  • IDFC
  • UTI (Retirement Solution Ltd)
  • Reliance

Open a NPS Account online

Who can open NPS Account?

As an initiative of pension Fund Regulatory and Development Authority tp give pension for old age, the scheme gives pension to old-aged people between the ages 18-60.

Procedures?

Any one who wanted to open a NPS account must have PRA (Permanent Retirement Account) and its applicable for Tier-I and Tier II only. Once the PRA is active then you can proceed to open a NSP account in any authorized bank.

The scheme is now available in Tier-I & Tier-II and those come with various provisions of NPS benefits for people.

Tier-I account

  1. The new pension scheme came into existence on 1st May 2009 by the Pension fund regulatory and development authority (PFRDA) and person belonging to the age groups of 18-60 could become members of this scheme.
  2. Banks have designated their branches to collect amounts through branches where they would serve as point of presence-service provider (POP-SP) and accept application forms. The applicants would only get registered with central record keeping agency (CRA) through the banks.
  3. The banks would give the account holders permanent retirement account number (PRAN).
  4. In the Tier-I account, as a registered member, you would have your money in the account, which is non-withdraw able.
  5. In Tier-I account, the minimum necessary contribution per month is Rs 500. Minimum account balance at the end of the year is Rs 6000. The minimum balance at the end of financial year in an account needs to remain Rs 6000. You need to make at least one contribution in a year.

Tier-II account

  1. In case, you have a Tier-II account, you could make unlimited number of withdrawals in case of your necessity.
  2. In case, you are a government employee and you have a PRAN card, you would get considered as IRA compliant.
  3. In case, you are having a PRAN card, not a PRAN number but not PRAN card, they could opt for opening such an account with their aadhar card.
  4. The minimum amount at the time of account opening is Rs 1000. Minimum amount per contribution need not be less than Rs 250.
  5. Minimum account balance in a year need not become less than Rs 2000.
  6. As a subscriber and registered member, you need make at least one contribution in a year.
  7. In case of composite account for Tier-I and Tier-II account, the member would make at least Rs 1500 as contribution fee at the time of account opening.

How to open an NPS account?

  1. For opening an NPS account, you need to have a valid mobile number, an email ID, and an active bank account number with the integration of net-banking.
  2. You need to have an aadhar number with mobile number registered in it and a PAN card.

If you want to open an individual account for pension, you would wait till KYC gets completed with the empanelled banks.

  1. You could fill up the compulsory details online.
  2. You need to scan and upload your photograph and signature.
  3. You need to make an online payment of minimum sum of Rs 500.

To open NPS in Axis Bank – https://www.axisbank.com

Opening an NPS account in Axis Bank is very easy, just follow above given link and filled up proper details like Name, Email, Address, Nearest Branch etc. This form looks like this:

Opening NPS with Axis Bank

To open NPS in SBI: https://retail.onlinesbi.com/ (Download the application form)

Above link can be use to download the NPS application form in SBI in pdf format.

The State Bank of India also provided the toll free number i.e 1800112211 that can be use to contact the customer support in order to open an account. Additionally you can also send an email to nps.ccmum@sbi.co.in.

After all these formalities, you need to print the form and after signing and fixing your photograph, you could submit to CRA via the bank.

6 comments

Leave a Reply

Your email address will not be published. Required fields are marked *