How To Open An NPS Account Using Aadhaar Card Online?

Aadhaar

The National Pension Scheme (NPS) is a popular way of creating a post-retirement corpus. Generally, the PAN card number is used to open an NPS account. The good news is that you can also use your Aadhaar card to open an NPS account. This article discusses how to open an NPS account with Aadhaar card. Read on to understand what NPS is, how to open an NPS account using your Aadhaar card, how to link your NPS with Aadhaar and more. Read on!

What is NPS?

NPS is a long-term investment option that provides a regular stream of income post-retirement. The Central Government, in association with the Pension Fund Regulatory and Development Authority (PFRDA), manages this specialised scheme. Employees belonging to the private, public and unorganised sectors are eligible to invest in NPS.

After a recent directive by the PFRDA, you can now open an NPS account online. The Aadhaar card is mandatory to complete KYC.

Sign Up Requirements for Aadhaar-Based NPS

Here are the details that you are required to submit to open an Aadhaar-based NPS account. 

• A valid mobile number should be linked to Aadhaar. 
• 12-digit Aadhaar number or the 16-digit Virtual Identification Number (VID) as provided by UIDAI. 

How to Apply for NPS Account Online Using Aadhaar eKYC

Also Read: Taxability of Pension: Is Pension Taxable?

How to Link Aadhaar to Your Existing NPS Account

When you already have an NPS account, it is a wise idea to link the same with your Aadhaar. This can lead to increased convenience in the future. Here’s how you can go about it: 

Step 1: Visit the official NSDL CRA website and use your NPS information to log in to your account.

Step 2: After logging in, select the ‘Update Aadhaar/Address Details’ option. You can find this under the ‘Update’ tab.

Step 3: Enter your Aadhaar number and choose the relevant option to generate OTP. Click on proceed.

Step 4: After receiving the OTP on your Aadhaar-linked phone number, proceed to enter the same in the correct field. 

Doing so will link your NPS account with your Aadhaar immediately.  

Important Points to Remember When Linking Aadhaar with NPS Account

Keep the following pointers in mind when you are about to link your NPS account with your Aadhaar:

• The name on your Aadhaar and the Permanent Retirement Account Number should be identical. If the spelling is different or there are some other inconsistencies, the linking is not possible.
• Even if an NPS account holder provides his/her Aadhaar information during account opening, he/she must still proceed with Aadhaar-NPS linking.
• OTP authentication is the only method through which verification of Aadhaar can take place during such a linking.
• In the case of government employees, one can consider Aadhaar seeding complete only after the Nodal officer sanctions the application.   

Why Should You Link Aadhaar and NPS?

Here are some advantages of Aadhaar-NPS linking: 

1. The authentication process with Aadhaar is simpler and less time-consuming. You do not need to take a printout of the PRAN form to provide a specimen of your signature. Instead, the Aadhaar-based e-signature fulfils this requirement.
2. Aadhaar seeding leads to instantaneous fulfilment of KYC norms. Thus, a subscriber does not need to wait for NPS processing.
3. Linking Aadhaar with NPS also allows for easier tracking of transactions by the government. For the subscriber, this means effectively claiming tax benefits. 
4. Lastly, you can avoid considerable paperwork when authenticating your NPS account using Aadhaar. Once again, this minimises hassle and encourages more individuals to subscribe to the scheme.  

Nevertheless, even after the introduction of this online authentication method, some potential NPS account holders prefer the offline application process.

How to Apply for an NPS Account Offline

To open an NPS account offline, you would need to visit a PoP entity. PoP stands for point of presence, and it refers to banks that have the authority to generate PRAN. The PFRDA has authorised such banks to open NPS accounts. Here is the detailed offline procedure to open such an account:

Step 1: Visit any PoP entity and ask for a PRAN form.

Step 2: After filling up this application form, submit the same. Substantiate your application by submitting relevant documents too.

Step 3: Pay the registration fee at the bank branch after the submission of your form.

After a few days, you would receive the PRAN card through the post at your residential address. As you can see, this offline process can be cumbersome and time-consuming. It requires you to visit the bank branch and wait for PRAN authentication. The online process eliminates much of this hassle.

Also Read: How To Check PAN And Aadhaar Linking Status?

How to Open NPS Account Linked with Post Office

Here are the steps you can follow if you wish to make your NPS investment through the Post Office. 

Step 1: Download the ‘NPS Subscriber Registration Form’ for Post Office which is available on the NSDL website. 

Step 2: Fill in the required information such as personal details, contact details, address and proof of identity. 

Step 3: Affix a passport-size colour photograph. Please note that no remark or signature is to be made in the form.

Step 4: Provide the name of your NPS nominee and bank account details. 

Step 5: Select one of the two investment options in the form:

• Active or Automatic Investment
• Investment done through a Fund manager

Step 6: Provide your signature or thumb impression to complete filling up the application form. 

Step 7: Visit the nearest Post Office that offers the facility of POP Service Providers (POP-SP). Submit the application form along with the attached documents for KYC.  

Final Word

The decision to open an NPS account with Aadhaar online can help improve your financial well-being after retirement. With Aadhaar becoming the primary identification document, linking it to your NPS account is a smart move. Apart from the accelerated authentication, Aadhaar can also help you to claim savings when your investment matures.    

FAQs on How to Open an NPS Account with Aadhaar Card

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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.

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