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How to Open an NPS Account Online? 

How to Open an NPS Account Online? 

Opening an NPS account online proves to be advantageous in its own ways, as compared to other pension products offered. NPS offers a number of great benefits such as low-cost tax breaks for individuals, portability, and regulation. It is also professionally managed by regulated Pension Funds.

What is NPS?

National Pension System (NPS) is a voluntary and long-term pension cum investment scheme by the  Government of India to provide security to citizens of India. It can be registered for by all Indian citizens between the ages of 18 to 60. Except for the armed forces, all employees- from private and public sectors alike are eligible to register for an NPS account.

For people with a low-risk appetite and not many sources of income, who want their retirement to be secure and planned, the NPS is a fitting scheme. A pension received on a regular and monthly basis during retirement years proves to be of great advantage- especially for employees retired from private-sector jobs.

It brings an appealing long-term saving alternative to effectively plan one’s retirement through safe means and market-based returns. It offers two kinds of approaches while investing- active choice where the subscriber selects the allocation percentage in assets classes and auto choice where funds are automatically allocated amongst asset classes based on age.

How Does it Work?

The scheme persuades the citizens of India to invest regularly in a pension account while they are still employed. A certain percentage of this amount is taken out after the employees’ retirement and the remaining corpus is given every month as the pension.

How to enrol in NPS- Online?

To start an NPS account from the comfort of your home, the following steps are to be followed:

  1. An account can be opened online for NPS through the given link:
  2. Based on Aadhaar authentication, pick the eSign option b.

The online form can also be filled up by submitting necessary details and getting them printed, signed, and submit it to the CRA after pasting the latest photograph.

Before applying for NPS registration, the subscriber needs to make the first contribution with a minimum of Rs 500.

The applicant can also track the status of the PRAN application using the provided receipt number at the following:

Active and Auto Choices:

For investors who want the freedom and flexibility of designing their own portfolio, NPS offers the versatility to design your own portfolio. Depending upon one’s risk appetite, funds are allocated amongst four asset classes, namely- Equity(E), Corporate Debt(C), Government Securities (G), Alternative Investment Funds (AIF).

Whereas for other NPS subscribers for whom planning their portfolio might be a herculean task, NPS also lets you opt for an automated allocation of your portfolio, which is referred to as an Auto Choice. Money invested here is sorted as per asset classes E, C, and G in definite proportions based on investors’ age. As the exposure to equity and corporate debt gradually decreases with an increase in an individual’s age, the risk appetite changes and the subscriber gets to pick from three different Auto Choice options available: aggressive, moderate, and conservative.

Registering for NPS online saves one from unnecessary inconvenience and hassle and helps speed up one’s investing process, in last-minute cases where the aim is tax reduction.

Opening an NPS account marks a significant step towards planning your retirement, securing your future, and reaping better tax provisions.