What would happen after we have retired. What would actually go on after we are no longer earning money to get meet our day-to-day expenses. Especially considering the inflation in the country, most of us have this feeling of uncertainty.
But what if I told you that irrespective of whether you retire next year, after a decade, or whenever you wish to, you can have a secured future? It’s true! The Indian Government has launched the NPS Scheme in order to safeguard the future of the employees.
What is NPS
The National Pension Scheme (NPS), also called the National Pension System, is a long-term and independent investment scheme that the Government of India has launched to help India’s citizens after their retirement.
This scheme is open to every employee from every sector including the private, public, and even the unorganized sectors except the Armed Forces.
How to Open an NPS Account Online
- Visit the eNPS website
- Under the “National Pension System” click on “Register”
- Enter your mobile number, Aadhaar Card, PAN Card numbers
- Click on Generate OTP
- An OTP will be sent to your registered mobile number
- Enter the OTP and submit the form
- Once the registration is complete, you will receive a Permanent Retirement Account Number (PRAN)
How to Open an NPS Account Offline
- Visit your nearest Point of Presence (PoP) Centre, a Bank, or a Post Office to be able to create an NPS Account
- Submit your KYC Documents along with a filled and signed copy of the application form
- The PoP will send you your PRANS once your first investment is made
- Along with the investment money, you will be required to pay a one-time registration fee of ₹125
Eligibility for NPS
- The individual should be an Indian Citizen
- Should have crossed the minimum age of 18 years
- Should be younger than 65 years
- Should be KYC Complaint
- Should not have any existing NPS accounts
Types of NPS Accounts
Tier I Account
- It is a basic pension account
- Only 25% of the funds can be withdrawn before the age of 60
- The other 75% is used for buying an annuity from a life insurer
- After reaching the age of retirement, only 60% of the funds can be collected
- The rest 40% are invested in an annuity to provide lifelong pension
Tier II Account
- Similar to a savings account
- Withdrawal can be done as per the individual’s requirements
- A portion of the collected funds goes into equities
- The returns offered by NPS are higher as compared to other traditional tax-saving investments
- 9% to 12% annual returns
- Choice of change in Fund Manager according to their likes
- Up to ₹1.5 lakhs can be claimed under NPS form 80C
- For a Tier I account, the individual needs to make a yearly contribution of a minimum of ₹6000 and a one-time contribution of ₹ 500
- For a Tier II account, the individual needs to make a minimum contribution of ₹2000 annually and a ₹250 one-time contribution
- One cannot withdraw the entirety of the amount after retirement
- Only 60% of the total sum after retirement
- The remaining 40% is invested so as to receive a regular pension
- NPS account can be opened online as well as offline
- The individual can make up to 3 withdrawals with 5-year gaps during the entire tenure of the NPS
- After exhausting these 3 withdrawals an individual can withdraw only up to 25% of the balance for specific purposes like marriage, medical illness, etc.
There are two types of NPS accounts. Tier I and Tier II. For a Tier, I account, the individual cannot request any kind of withdrawal until the individual has turned 60 years of age or has permanently retired.
However, a Tier II account is more like a savings account from which the individual can withdraw at any time they desire.
How to know Your NPS Balance Online Via NDSL Portal
- Visit the NDSL Portal
- Enter your PRAN and password to log in
- Fill in the Captcha and click on “Proceed”
- Under the “Transaction Statement” section, click on “Holding Statement”
- The details of your account balance will be visible on the screen
How to know Your NPS Balance Through NDSL e-Gov App
- Download the NDSL app on your phone
- Enter your PRAN and password to login into your account
- When you have logged in, you will see the NPS Holding amount that includes Tier I and Tier II holding amounts along with transaction details
- You can get an “Email Transaction Statement” on your registered email ID
How to Know your NPS Balance Through The UMANG App
- Download the UMANG App on your phone
- When you launch the app, search for the NPS services section
- Click on NPS and then click on CRA
- Then click on the “Current Holding” option
- Enter your Permanent Retirement Allotment Number (PRAN) and Password
- Click on “Login” to view your account details and balance
How to Know Your NPS Balance Offline
You can get your NPS Balance Details through a missed call as well. You have to give a missed call on 9212993399 with your registered mobile number. A few moments later, you will receive all of your Account details via an SMS. Furthermore, if you have any queries or complaints, you can always contact the NPS Customer Care Centre at (022) 2499 3499.
FAQs On How to Check NPS Balance
Q. What is the NDSL website?
Ans – The official website of NDSL is https://enps.nsdl.com/eNPS/NationalPensionSystem.html
Q. Where can I download the NDSL App from?
Ans – If you want to download the NPS e-governance app, you can download it from https://play.google.com/store/apps/details?id=nps.nps
Q. Where do I download UMANG from?
Ans – You can download the UMAG app from https://play.google.com/store/apps/details?id=in.gov.umang.negd.g2c
Q. Is it possible to have two NPS Accounts?
Ans – No. an individual can only have one NPS Account. It is similar to the PAN in this sense.
Q. Who provides the annuity on withdrawal or maturity?
Ans – The insurance provided under NPS is licensed by IRDA and is signed by PFRDA.