How To Open NPS (New Pension System) Account Free Tax Filing How To Open NPS (New Pension

System) Account The New Pension Scheme (NPS) is a social security scheme introduced by the government, aimed at providing a steady stream of income post retirement. An affordable option, the NPS is especially ideal for people from the unorganized sector, or for those who do not have the benefit of receiving pension from their employers. So how should one go about opening an NPS account? Who should one approach and what are the documents required? Read on to know it all. Getting Started- Understanding the NPS The NPS follows a very simple working mechanism. Investors contribute a monthly amount towards their NPS account. This monthly contribution is in turn invested in avenues as per investor choice and risk profile. Upon retirement, a part of the corpus could be withdrawn as lump sum, and the balance will be mandatorily paid out as pension annuity. There are two NPS account options available for investors. Tier 1: This is a mandatory non-withdraw able pension account. Money would be available on maturity only, i.e., at 60 years. Tier 2: A voluntary withdraw able account, it lets you withdraw money at any time. However this option will not have any government contribution. Also, it is mandatory to have a Tier 1 account in order to open a Tier 2 account. Opening an Account- Whom Do You Approach? The NPS is regulated by the Pension Fund Regulatory Development Authority (PFRDA). Six designated Pension Fund Managers (PFMs)have been appointed whowould beresponsible for investing the funds and generating returns from them. An investor would have the liberty to choose or change their fund manager if so required. List of Pension Fund Managers · ICICI Prudential Life Insurance Company Limited · IDFC Asset Management Asset Management Company Limited · Kotak Mahindra Asset Management Company Limited · Reliance Capital Asset Management Company Limited · SBI Pension Funds Limited · UTI Retirement Solutions Limited Various Points of Presence have been constituted, which act as a customer interface for investors. You may chose from the below mentioned list to open your account.

clickhttp://pfrda. · Bajaj Allianz General Insurance Co Ltd. · State Bank of Bikaner & Jaipur State Bank of Hyderabad · State Bank of India · State Bank of Indore · State Bank of Mysore · State Bank of Patiala · State Bank of Travancore · The South Indian Bank Ltd. or providers such as ICICI Direct. NPS accounts could also be opened online through CAMS online. · IDBI Bank Ltd. Permanent Retirement Account Number (PRAN) The Permanent Retirement Account Number (PRAN) is a unique identification number that is issued on opening an NPS account. · Union Bank of India · UTI Asset Management Company Ltd. Account opening Procedure . · Life Insurance Corporation of India Oriental Bank of Commerce Reliance Capital Ltd. irrespective of changes in job. · Kotak Mahindra Bank Ltd. · Computer Age Management Services Private Ltd.xls Alternatively. location of account.in/writereaddata/linkimages/POP SP_Location0502115605373405. · ICICI Bank Ltd. *For a more complete list of POP and their branches. or change in pension fund manager. It is a 16 digit number that would remain fixed throughout the term of the account.List of Points of Presence (PoP)* · Allahabad Bank · Axis Bank Ltd. · IL&FS Securities Services Ltd.org. · Central Bank of India Citibank N.A.

On the application form. within 15 days.1000/‐ Once the account is opened. you would need to provide the preferred scheme. an information brochure. aged between 18 to 55 years. An initial contribution is collected at the time of opening of account.500/‐ for Tier 1 and for Tier‐II it is a minimum of Rs. you would need to fill up the prescribed application form and submit the necessary Know Your Customer (KYC) documents.nsdl. the internet pin and telephone pin. and asset allocation choice. and Two Recent Color Photographs.    A NPS account could be opened by any Resident Ior Non Resident Indian. To register for a NPS account. The NPS account is a good option for those who wish to have a steady stream of income post retirement. Date of Birth Proof.in . Central Recordkeeping Agency (CRA) of the NSDL would send a Permanent Retirement Account Number (PRAN). You would need to visit the nearest POP branch to open the account. Documents required are Identity Proof. and though sometimes the procedures may seem a bit cumbersome.npscra.In case of any queries or delay regarding application form. Investors could view it’s status by using the acknowledgement number onwww. making it easier to access details about their account. The scheme is in its early years.co. This contribution is a minimum of Rs. T‐Pin with an Interactive Voice Response system. Written by Ramya Ramachandran Retirement Corpus and Planning Calculator More Smart investment articles . The NPS caps the equity allocation at 50%. Address Proof. investors have the facility of an I‐Pin.

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