How to invest in NPS online through eNPS?

how to invest in nps online thru enpsHow to invest in NPS online through eNPS?


One of the best investment plans to invest retirement plan is to invest in NPS-New Pension System / National Pension System. PF authorities has been trying to automate Pension Fund facilities. NPS subscribers has been thinking how to invest in NPS online. Earlier, only CAMS and ICICIDirect were allowed where subscribers can invest in NPS online. Now you can invest in NPS online through eNPS system. In this article, we would provide step-by-step details on how to invest in NPS through eNPS online.

What is National Pension Scheme (NPS)?


There are many terminologies being used for NPS, New Pension Scheme, National Pension Scheme, National Pension System etc., NPS is a retirement option where an individual can save his monthly savings into various funds under NPS.

NPS has 2 accounts Tier-I and Tier-II.

In Tier-I account, subscribers can save fo retirement into non withdrawal account which includes employers contribution too. Premature withdrawals can be done after 15 years of contributions, but before 60 years of age.

In Tier-II, subscribers can voluntarily contribute which are free to withdraw any time. One need to have Tier-I account before opening Tier-II account. This facility is available to all citizens of India including government employees and employees of corporate sector.

One can additional invest Rs 50K in NPS beyond Rs 1.5 Lakhs tax deductions available u/s 80C.

How to invest in NPS online through eNPS?


Below is the process to invest in NPS online through eNPS portal.

1) Visit NPS Portal (click this link).

how to invest in nps online thru enps-visit page

2) If you are new user, click on registration.

Enter all details pertaining to new registration like residential status, PAN, Tier-I/II account, bank account.

new register-how to invest in nps online thru enps

There would be deduction of Rs 100 towards bank KYC authentication charges. Currently there are more than 10 banks where this facility is available. Currently NPS contribution can be done through below banks. eNPS trust asked other bank accounts to participate for subscription.

  • Allahabad Bank
  • Bank of India
  • Bank of Maharastra
  • OBC
  • South Indian Bank
  • State Bank of Travancore
  • State bank of Hyderabad
  • State Bank of Patiala
  • Tamilnadu Merchantile Bank
  • Union Bank of India

3) Enter personal details.

personal details-how to invest in nps online thru enps

4) PAN number would be validated with Income Tax Records.

5) Under Scheme / Nomination details, select fund manager details. Currently there are ICICI, HDFC, SBI, Kotak, UTI, LIC and Reliance who are the fund managers.

6) Select the investment option under Scheme/Nomination details. You need to select either Active choice (investment in various asset classes based on your age) or Auto Choice (Life cycle fund).

7) You need to make intitial contribution of Rs 500 for Tier-I account or Rs 1,000 for Tier-II account.

8) Once you make initial contribution, Permanent Retirement Account Number (PRAN) is allotted to you. Relevant PRAN kit, IPIN/TPIN, Scheme info would be mailed to your registered address.

9) Subscriber details are sent to bank for KYC verification. Once these are verified, your account is active and operational.

10) Once your online registration is complete, take print of pre-filled NPS application form, attest the photograph and sign the form and mail it to the following address within 90 days from the date of registration.

  • Central Record keeping Agency (eNPS), NSDL e-Governance Infrastructure Limited,  1st Floor, Times Tower,  Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013

11) If you have already have PRAN number, just click on “Subscription” option and enter Subscriber PRAN and Date of Birth, click on Verify PRAN and make the contribution.

subscriber-how to invest in nps online thru enps

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Madhavi

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