How to Open NPS Account in Central Bank in India?

NPS or National Pension System is a scheme launched by the Government of India for the people wanted to save funds for retirement.

You can invest in the account if you are an Indian citizen in various banks and post offices in India. You can open an NPS account in banks especially Government Banks in India including the Central Bank of India.

It is a market-linked scheme which means the investment you make is managed by the pension fund manager.

In this article, we will discuss how to open an NPS account in Central Bank in India, Documents Required, account opening process, types of accounts, etc.

How to Open NPS Account in Central Bank in India

Types of NPS Account

These are the types of the NPS Account you can opt for while opening the Central Bank of India-

For Tier-I

  • The initial deposit amount for opening the Tier-I account is Rs.500/- with a maximum deposit amount is Rs.500/-
  • It is a mandatory account meaning this account is compulsory
  • You’ll get a Tax benefit up to Rs.1.5 lakhs per annum

For Tier-II

  • The initial deposit amount for opening the Tier-I account is Rs.1000/- with a maximum deposit amount is Rs.1000/-
  • It is an optional account which you have an option to choose

How to Open NPS Account in Central Bank in India

You can follow these steps to open an NPS account in the Central Bank of India-

  • Visit the official website of the Central bank in India website for the NPS account opening form
  • Now, click on the NPS registration button and you’ll be redirected to a new page
  • Click on the registration button and fill out the application form like account number, name, Date of Birth, Aadhar card number, etc
  • After filling in the form, you have to submit the application form by clicking on the submit button
  • Now, you have to eSign the application form using your Aadhar card OTP by inserting the OTP in the given section
  • After eSign, you have to pay for the application form using a credit/debit card, net banking, mobile banking, etc.
  • After payment, you have to receive the NPS account number using which you can use the account number for paying

Documents Required for NPS Account

The following are the documents required for the NPS Account in Central Bank in India-

  • 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

List of Pension Fund Managers in NPS Account

The following are the list of Pension Fund Manager in the NPS Account-

  • 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

FAQ

Is the interest earned on the NPS account guaranteed?

No, you’ll not get a guaranteed return on your investment however, the returns are invested in the market and offer good returns as the Indian economy is one of the fastest-growing economies. The pension fund managers maintain your investment which marks the investment even more reliable.

I want to take an earlier retirement, what will happen to my NPS account?

You can take early retirement and you can prematurely withdraw the fund however, your account should be matured for at least 10 years. You can withdraw the funds up to 20% and the rest of the funds must go to purchasing the annuity plan.

Can I invest in an NPS account if I surrender my Indian Citizenship?

No, you cannot invest in the NPS account if you surrender your Indian citizenship. As soon as you surrender your Indian citizenship your NPS account will immediately lapse.  

How can I contribute to my NPS account?

You can contribute to the NPS account as monthly and yearly contributions and you get better returns on the interest rates.