NPS stands for National Pension system which is a voluntary pension system allowing an individual to save funds while working, this savings can be then redeemed at the time of retirement in form of pension.
It is one of the best savings schemes that provide an attractive interest rate along with the tax benefit. This scheme has EEE status meaning the interest earned, maturity amount and principal amount all are exempted from tax.
Bank of India is registered with PFRDA as a Point of sale that allows anyone to open an NPS account in Bank of India.
In this article, we will discuss How to Open NPS Account in the Bank of India? Eligibility, types, documents required, etc.
Eligibility Criteria for NPS Account
The following are the eligibility criteria for NPS Account–
- The applicant must be a citizen of India or non-resident/ Overseas Citizen of India (OCI) card holder
- The age limit for applying for the NPS Account is 18 year to 70 years
- The applicant has an option to extend the contribution to this account till the age of 75 years
Type of NPS Account
The following are the types of the NPS Account that the applicant can choose from-
| Criteria | Tier-I | Tier-II |
| Minimum Contribution Amount | Rs.1000/- | Rs.250/- |
| Minimum contribution per financial year | one | Voluntary |
| Maximum contribution | Rs.1.5 lakhs | NA |
| Investment type | Market Linked | Market Linked |
How to Open NPS Account in Bank of India?
The following are the step by step instructions on how to open an NPS account in the Bank of India-
- Visit nearest Bank of India Premises
Visit your nearest Bank of India premises and ask the bank representative for the NPS Account opening form
- Fill the form
After getting the form, you’ll have to fill the form with correct details and make sure to declare the pension fund manager you want to choose. By default, it is SBI Pension Funds
- Submit the form
Now, submit the form to the bank representative along with the documents mentioned below and the initial deposit amount
- Bank will process your account opening request
After submitting the form and documents, your NPS account will be processed and the bank official will review your application and document
- After verification, your account will be opened
After successful verification, your NPS Account will be created successfully and you’ll be notified about it via SMS. In the SMS, you’ll find your PRAN number using which you can access your NPS Account
Pension Fund Manager
The following are the list of pension fund manager that you can use=
- SBI Pension Funds
- LIC Pension Fund
- UTI Retirement Solutions
- HDFC Pension Fund
- ICICI Prudential Pension Fund
- Kotak Pension Fund
- Reliance Capital Pension Fund
- Birla Sun Life Pension Management Ltd.
- Indian Post Office
Documents Required for NPS Account
The following are the documents required for the NPS Account-
- Identity Proof- Aadhaar Card, Class 10 and 12 certificates, PAN Card, Passport, etc.
- Residence Proof-Electricity bill, Utility bills, Bank Passbook first page, etc.
- Application Form for opening NPS Account
- PAN Card (Mandatory) scanned
- Aadhaar Card (Mandatory)
- Canceled Cheque
- Scanned passport size image
- Scanned Signature
FAQ
No, foreign citizens cannot subscribe to the NPS Account. He/she has to get Indian Citizenship before applying for an NPS account.
If the subscriber’s citizenship status changes, the NPS Account associated with his/her will be closed immediately and the funds stored up until that point will be provided to the subscriber after deducting any dues.
Yes, you can contribute to the NPS Account after 60 years by extending the contribution till you attain the age of 75 years.
Yes, in the NPS scheme, you have an option to prematurely withdraw before retirement given you have continuously contributed to the account for 10 years with at least 80% of the funds to be invested in an annuity plan.
