National Pension Scheme is a market-linked pension fund that offers the subscribers opportunity to save funds during their younger days and reap the benefits at the retirement age.
With a market-linked scheme, you can get amazing Returns on Investment especially with a booming Indian economy the returns will be the highest at the time of maturity.
You can open an NPS account in various banks, Indian Bank is one of the banks where you can open a bank account.
In this article, we will discuss how to open an NPS account in an Indian bank? documents required, online & offline, etc.
But first, let’s find out what are the types of NPS account available.
Type of NPS Account
NPS Account comes with two types of accounts that you can subscribe to. The following are the two types of NPS account-
Tier-I
This type of account is a mandatory account that every NPS subscriber must subscribe to. It is mandatory to contribute to this account once a year.
You’ll get a tax benefit of up to Rs.1.5 lakhs per annum for subscribing to NPS Account. At the time of maturity, you’ll get returns for your contribution of which 40% of the corpus is tax-free, 40% will be used to buy an annuity plan, and the rest 20% can be withdrawn after-tax deduction.
Tier-II
This account type is a voluntary account that offers the subscriber a flexible withdrawal and contribution mechanism. This account is not exempted from tax benefits.
Eligibility of NPS Account
The following are the eligibility criteria for NPS Account-
- This account is only available for Indian Citizen
- The minimum age for subscribing to the NPS account is 18 years and maximum age is 60 years
- You have an option to extend the NPS Account up to 70 years of age
- The minimum amount to be contributed for Tier-I and Tier-II account is Rs.500/- and Rs.1000/- respectively
Documents Required for Opening NPS Account
The following are the documents required for opening an 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
How to Open NPS Account in SBI?
National Pension Scheme can be opened both online and offline which are as follows-
Online NPS Account
- Visit the official website of National pension System by following this link- https://enps.nsdl.com/
- Now, click on the NPS button followed by clicking on the Registration button
- A registration form will appear where you’ll have to enter your details like Aadhaar number, applicant type, resident status, etc.
- Now, click on the OTP button and enter the OTP sent on your register mobile number which you’ll have to enter on the given field
- After entering the OTP, you’ll be redirected to another form where you’ll have to enter personal details and family details
- Using the drop down, choose the identity proof you want to provide and enter the document number of the document
- After filling the form, click on the generate acknowledgement number followed by clicking on the ok button
- Now, you’ll be redirected to a semi filled application form with multiple sections, you’ll have to fill the each section with the details like bank details, nomination, etc.
- You’ll also have to choose the pension fund manager from the list given. Below we have provided the different fund manager you can choose from
- Now, upload the documents mentioned above
- After uploading the documents enter the amount you want to contribute and make the payment
- After successful payment, a PRAN number will be generated which you can use to access the NPS account
- Now, you’ll have to sign the application form using the eSign system
- You’ll be provided with information regarding your NPS account and you’ll also receive the NPS card using which you can easily access your account
Offline NPS Account
- Visit the nearest Indian Bank premises and ask the bank representative for the NPS account opening form
- Now, fill the form with correct details and attach the documents mentioned above
- Submit the application form and documents along with the payment to the bank representative
- The bank representative will review your application and forward the request to the other department
- You’ll be notified about the account opening via SMS and you’ll receive the PRAN card via post after successful account opening
Pension Fund manager
The following are the list of pension fund manager that you can choose from-
- 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
Yes, NRP and OIC cardholders can contribute to the NPS account however, the subscriber must hold Indian Citizenship.
No, a foreign citizen of Indian origin cannot apply for an NPS account.
One mandatory contribution of Rs.500 each year to the NPS account is necessary and after that, you can contribute as much as you like.
No, Tier-II account is a voluntary account, you can contribute as much as you like.
