How To Open And Manage An NPS Account Online?

You’re not a fella with financial knowledge, and all the discussion is about wealth allocation and capital markets. Should you participate in the NPS anyway? Oh Yeah, you can. What’s better, you can do all of this by yourself. And here’s a step-by-step guideline to opening an NPS account and managing it.

• Either through approved branches of the 26 banks that provide the scheme or via the eNPS website, you can open an NPS account.
• You need to be an Indian citizen aged 18 to 65 years to be eligible for an NPS account. You need a PAN, a mobile number, email ID and an active bank account and available net-banking service to open an account. It is no longer compulsory of Aadhaar to open an NPS account.
• Enter your bank details and PAN, as required, on the registration page of the eNPS website. As it is your primary retirement scheme, choose Tier I. Generating and submitting an OTP will enable you to do so. At this point, make sure your mobile phone is handy and mobile number is active. First the bank will check your KYC approval account. Provide, save and continue as requested on the page with your personal details.
• From either Active or Auto options, you will have to select. Active is the safest option and allows you to determine the percentage of your monthly equity (E), government bonds (G), corporate (B) and alternative assets (A) contribution. If you are below the age of 55, mark the E at 70% and G and C at 15% respectively. Until you are old enough to retire, the high allocation of equity will help you earn inflation-beating yields. You can transfer your accumulated E and C amounts to G at age 55 to preserve your corpus as well.
• From a list of eight, you will have to choose a single PFM or pension fund manager for your capital. Depending on their past history and also the reliability and sustainability of the funder, make your own choice. Based on existing records, HDFC, ICICI Prudential and UTI are reasonable choices.
• Check and update the details of the nominee. Upload a photograph, specimen signature, a cancelled cheque of your preferred bank account.
• Now make the minimum contribution of Rs 500 through your net banking account. You will receive a PRAN or permanent retirement account number once the payment is successful. You must keep your unique PRAN ID secure and handy as it will be required in future interactions with NPS.
• You must select the ‘print and courier’ option to complete the account opening procedure successfully. Take a print out of the application form, attach your passport size photograph, sign the form and courier it to Central Record keeping Agency for eNPS, address details are mentioned on the site of e-NPs.
• You can now take rest and let the PFMs do the money management work. To keep the account active, make sure that you contribute at least Rs 1,000 annually. Preferably, via monthly instalments, schedule out your NPS contributions respectively.

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