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!
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.
Here are the details that you are required to submit to open an Aadhaar-based NPS account.
If you want to create an NPS account online, you would need to complete the following procedure:
Navigate to the official eNPS portal. Click on ‘Click Here for Registration of Virtual ID (VID) for making same-day Investment directly through your Bank Account under NPS’.
A pop-up window will appear. Select ‘Registration’.
From the Applicant Type category, select ‘Individual Subscriber.’
Depending on your current residential status, choose one of the three options — Indian citizen, Non-resident Indian, or Overseas Citizen of India. Next select ‘Aadhaar Online/Offline e-KYC’. Select the appropriate Tier and Aadhaar. By default, all NPS account holders have a Tier I account.
Next, enter your Aadhaar number and the 16-digit Virtual ID in the relevant fields. After entering these two numbers, click on generate OTP. Enter the received OTP in the correct space and hit continue.
After successful OTP verification, the online PRAN form will appear with details, such as date of birth, full name, gender and residential address already filled up. You would still need to provide other relevant information during this stage of the application.
Make an initial contribution to the account to validate your National Pension Scheme account.
The last step involves a digital authentication procedure which you can complete using an Aadhaar-based e-signature.
Also Read: Taxability of Pension: Is Pension Taxable?
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.
Keep the following pointers in mind when you are about to link your NPS account with your Aadhaar:
Here are some advantages of Aadhaar-NPS linking:
Nevertheless, even after the introduction of this online authentication method, some potential NPS account holders prefer the offline application process.
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?
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:
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.
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.
Ans: Aadhaar card eKYC for NPS account is only possible after OTP verification. If your mobile number is not linked to your Aadhaar, you will not receive an OTP. Hence, an online NPS account opening using Aadhaar would be impossible under such a circumstance.
Ans: The Pension Fund Regulatory and Development Authority (PFRDA) issued a press release regarding this matter on April 27 2021. In it, the government body authorised financial institutions to onboard new NPS clients using the Aadhaar online KYC process.
Ans: If you opt for an offline NPS application, you would need to pay a fee to the PoP bank you choose. The initial subscriber registration fee is Rs. 200. Remember that the bank will collect this fee upfront.
Ans: Tier-I subscribers must make a minimum initial contribution at the time of registration. They must pay a minimum of Rs. 500 per contribution in NPS. In a particular financial year, the contribution to the account cannot be less than Rs. 1000.
Ans: Note that Indian citizens who are aged between 18 and 60 years can open an NPS account. While the account matures when subscribers turn 60, they can choose to extend the investment until they are 70.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
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.
How to Download Aadhaar Online – From UIDAI, DigiLocker and mAadhaar App
After enrolling for an Aadhaar card, you can download an electronic copy of the Aadhaar from UIDAI... Read More »Aadhaar Card Download by Name and Date of Birth in 3 Easy Steps
Your Aadhaar card serves as a primary proof of your identity and address in India. In case you have... Read More »How to Get Instant PAN Card Through Aadhaar Card – Online Proces
Mr Sharma has been an Aadhaar cardholder for the past few years and plans to apply for a Permanent ... Read More »How to Lodge Aadhaar Card Complaints and Check Status Online
After its introduction in 2010, an Aadhar card became an essential identity document for all Indian... Read More »Apply for an Aadhaar Card Online And Offline – How To Check Application Status
Aadhaar Card was introduced by the Unique Identification Authority of India (UIDAI) in 2010 to prov... Read More »How To Link Aadhaar Card With Mobile Number – Online And Offline Process
Issued by the Unique Identification Authority of India (UIDAI), Aadhaar is a verifiable 12-digit id... Read More »How to Check Aadhaar Authentication History Online – Working and Benefits
The UIDAI's database stores any changes or updates to an Aadhaar card. It is saved under the Update... Read More »Aadhaar Card for NRI – Online Process and Documents Required
Anyone residing in the country can apply for an Aadhaar card if they satisfy the verification proce... Read More »What are The Uses and Benefits of an Aadhaar Card – Services That Require Aadhaar
An Aadhaar card is a biometric document that serves as proof of identity and address in India. It c... Read More »What to Do if You Haven’t Received Your Aadhaar Card: Reasons and Resolution
Mr. Sharma has applied for an Aadhaar card and wishes to link it to his bank account for LPG subsid... Read More »How to Apply for an Aadhaar Card – Application Form and Enrolment Centers
Aadhaar is a unique individual identification code issued by the UIDAI. This document is necessary ... Read More »What is Aadhaar Virtual ID and How to Generate It
Generate your Aadhaar Virtual ID to enhance privacy controls over your Aadhaar data. The UIDAI ro... Read More »Top 10 Chit Fund Schemes in India in 2023
Chit funds are one of the most popular return-generating saving schemes in India. It is a financial... Read More »10 Best Gold ETFs to Invest in India in February 2023
Gold ETFs or Gold Exchange Traded Funds are passively managed funds that track the price of physica... Read More »Top 10 Demat Accounts in India [Lowest Brokerage Charges]
A Demat account was created to eliminate the time-consuming and inconvenient procedure of purchasin... Read More »20 Best Index Funds in India to Invest in 2023 (Updated on 31st Jan)
What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that... Read More »Best Arbitrage Mutual Funds to Invest in India: Returns and Taxation
Arbitrage funds are hybrid mutual fund schemes that aim to make low-risk profits by buying and sell... Read More »Best SIP Mutual Funds To Invest In India (2023) – Its Types And Taxation
A Systematic Investment Plan (SIP) is a convenient way to invest a fixed sum in mutual funds. For i... Read More »10 Best Corporate Bond Funds in India 2023 – With Returns
Corporate bond funds are debt funds that invest at least 80% of the investment corpus in companies ... Read More »10 Best Banks for Savings Account in India (2023)
A savings account keeps your money safe, and lets you earn interest every quarter. There are many b... Read More »All information is subject to specific conditions | © 2023 Navi Technologies Ltd. All rights are reserved.
Start Small. Dream Big.
Start your Investment Journey with just ₹10