How to Open NPS Account Online in India?

Save & Invest

The Pension Fund Regulatory and Development Authority launched the National Pension Scheme, also referred to as NPS, as just a retirement-focused saving vehicle in 2004. (PFRDA). Anyone who is a citizen and between the ages of 18 and 60 can open an NPS Account and start saving for their retirement. Subscription fees are gathered together and used in a variety of long-term yielding debt and equity products. The investments were managed by PFRDA-registered fund managers. If investors feel that a fund’s record falls short of the results of the market or another reference, they are free to swap fund companies.

NPS Account Features

  • 40% of the NPS corpus is tax-free after the term, whereas the remaining 60% is subject to taxes.
  • The purchase of an annuity would require at least 40% of a corpus.
  • Any lump-sum withdrawal would be subject to tax at the time of withdrawal.
  • You won’t have to pay taxes on your corpus if you take 40% and put the other 60% into an annuity.
  • The tax rate on the annual income is determined by the tax bracket of an account owner.
  • The broad tax exemption of NPS has been increased from 1.5 lakh rupees to 2 lakh rupees per year using Section 80(C) of the IT Act. NPS, in the opinion of many, has been the second-best method for reducing taxes following equity-linked savings plans (ELSS).

NPS Account Types

NPS accounts are available in two types – Tier 1 accounts and Tier 2 accounts.

NPS Tier 1 Account: This is the compulsory NPS account, so if you contribute to it, Section 80 of the tax code will give you tax relief. Although the regular accumulated 80C advantage is now only up to Rs. 1.5 lakhs, National Pension System participants who contribute money towards this type of NPS account receive an additional tax break of Rs. 50,000. However, there have been restrictions on how much you can withdraw from the account.

NPS Tier 2 Account: Members of NPS who have an NPS Tier 1 account are eligible to open a second account for retirement savings. Investments made in the Tier 2 account are often not eligible for tax incentives. Additionally, you must have an active Tier 1 account to deposit funds into any of these accounts. There aren’t any restrictions on the amount that can be removed from an NPS Tier 2 Account under existing NPS regulations.

How to Register for NPS?

You have the option of opening an NPS account in person or online. To open the NPS account on the PFRDA webpage, adhere to the steps below:

  • Click the button next to the “Registration” menu and choose “register with Aadhaar.”
  • Once the Aadhaar number has been entered, click “Generate OTP.”
  • Your mobile device’s stored phone number will receive the OTP.
  • Together with your nomination, as well as bank information, the OTP must be submitted.
  • Your PRAN would be sent following the successful submission of your application.
  • The image that appears in the “Photograph and Signature” tab would be your photo.
  • The option “e-signature” should be selected. Once more, an OTP would be generated and sent to your phone number.
  • To validate your signature as well as complete the transaction, enter the OTP.

How to Create an Offline NPS Account

To obtain the application form to open an NPS account, go to the nearest point listed within PFRDA. POPs are specific banks and financial organisations which the PFRDA has selected to offer people the NPS scheme.

All NPS-related services, including registering for the NPS Scheme, switching fund managers, and other corresponding ones, are provided by these POPs. You should complete the basic information on the application form, and present any Know Your Customer (KYC) documents, including an Aadhar card and a PAN card, and also documentation of your address, to join the NPS Scheme.

Advantages of Using Aadhaar to Register an NPS Account

An NPS account used to be challenging to open. Requesting an NPS form as well as sending one back to the Pension Fund Regulatory and Development Authority’s office was required of applicants (PFRDA). However, once NPS was implemented, the procedure has gotten considerably simpler. Start-up merely requires a few minutes. The following are some advantages of using Aadhar to open an NPS account:

  • The PFRDA portal of the Central Recordkeeping Agency is where the NPS form could be obtained and submitted (CRA).
  • A candidate does not need to provide a paper copy if they can provide their Aadhaar number and verify it digitally.
  • One-Time Passwords (OTPs) given to the applicants’ Aadhaar-registered mobile phone numbers have been used to verify e-signature submissions. Both parties could save a tonne of time, money, effort, and probably paperwork by adopting this strategy.
  • When completing the online NPS form, applicants might receive assistance from the point of presence (POP). Nearly all banks with NPS registrations serve as POPs and are required to assist customers with form completion and other inquiries.
  • Each POP has the right to impose a modest cost for offering E-signature services. 
  • A 0.25 per cent POP service fee will be added to the contribution amount (with a minimum of Rs. 20 and a maximum of Rs. 25,000 per transaction).

Online Review of NPS Account Statements

You can view your NPS Account Statements online after logging into the NPS account. These documents provide you with a thorough accounting of your contributions to and withdrawals from the Tier 1 and Tier 2 National Pension Systems as well as data on your assets. The “Transaction Statement” menu, which also includes links for “Holding Statement” and “Transaction Statement,” allows users to see their NPS account statements.

Additionally, you can install your NPS account summary and receive email files with digital copies of Tier 1 and Tier 2 account holdings. Your specified email address will frequently receive the digital NPS statement of account, that displays the withdrawals and deposits for the relevant period.


People can sign up for the NPS, an online social security service if they so choose. The Pension Fund Regulatory and Development Authority oversees its operations (PFRDA). Its objective is to provide pensions to individuals to assist them financially after they retire. A social security programme called the NPS Scheme was launched by the federal government in 2014. The New Pension Scheme is a plan that rewards retirees based on how the stock market does. If you want more details, then you must visit Piramal Finance you’ll get all the necessary information.