You can open a NPS account either through online mode or offline mode.
The online registration process is easy and quick. Once the NPS subscriber submits the registration form and relevant documents, they will be redirected to a payment gateway for completing the payment towards their NPS account.
The subscriber should visit our branch for offline registration. They need to fill in the registration form along with the relevant KYC form and initial contribution. Once the application is processed the CRA (Central Record Keeping Agency) will dispatch PRAN (Permanent Retirement Account Number) and the password.
Under the National Pension System, the NPS subscriber can open two types of accounts Tier I and Tier II.
Only subscribers holding Tier 1 accounts can open a Tier 2 account.
|Particulars||Tier I||Tier II|
|Eligibility||Anyone aged between 18 to 70 years||NPS Tier I account holders|
|StatusLock-in period||60 years||NA|
|Min. contribution (at account opening)||INR 500||INR 250|
|Min. annual contribution||INR 1000||NA|
|Withdrawals||60% of the corpus can be withdrawn in a lump sum. The remaining 40% has to be used to purchase an annuity plan||The entire corpus can be withdrawn as a lump sum, or in multiple redemptions without any limit.|
|Tax on withdrawals||On maturity, the entire corpus is tax-exempt||The amount is added to the subscribers taxable income and is taxed as per the applicable tax rates|