The need for securing one’s financial future remains
an essential element in survival, and in India, the National Pension System
(NPS) is a firm step towards this goal. The NPS is a voluntary savings program
managed by the Pension Fund Regulatory and Development Authority (PFRDA).
To open an NPS account, you require the Permanent
Retirement Account Number (PRAN). The process to apply for pran card online is quite straightforward. This article will
guide you on how to streamline the process of acquiring your PRAN card online.
Getting Started
Commencing the application process is as easy as
visiting the NPS site (https://enps.nsdl.com/eNPS/) and selecting
‘registration’ on the menu. Once you land on the registration page, you will
need to choose the type of NPS account you wish to open: Tier 1, Tier 2, or
Both. If you’re not yet conversant with these tiers, don’t worry.
NPS Tier 1 is the primary account and is compulsory
for NPS registration. It functions like a traditional retirement savings
account; funds invested cannot be withdrawn until retirement. On the other
hand, NPS Tier 2 is a voluntary savings account where you can deposit and
withdraw money as you wish. However, NPS Tier 2 lacks tax benefits.
Acquiring the PRAN card online
1. Go to the NPS official site, click on
“Registration.”
2. Choose your account type: Individual or Corporate.
For personal use, select ‘Individual’.
3. Choose your citizenship: Resident or Non-Resident.
Fill in your correct details.
4. You will be required to provide an active mobile
number, email ID, and complete the Aadhar or PAN method KYC process.
5. You can choose to open an eNPS (paperless) account
by completing e-KYC using Aadhar or fill the Physical Form by clicking on ‘With
PRAN’ option.
6. Follow the instructions accordingly; again, it is
expected of you to provide accurate details as per your PAN or Aadhaar card.
7. After completing the process, one-time password
(OTP) for verification will be sent to your registered mobile number.
8. After successful verification, upload your scanned
signature and photograph.
9. Decide your scheme (how you want your portfolio to
be constructed), and then proceed to the payment gateway to make your initial
contribution.
10. Make the initial contribution using your preferred
method (Debit/Credit card, Internet banking). The cost of opening an NPS
account with minimum contribution is INR 500 for both mandatory tier I and
voluntary tier II accounts.
Please note that anyone can apply for pran card
online, whether a citizen of India or a non-resident of India.
Once the payment is confirmed, a Permanent Retirement
Account Number (PRAN) will be allotted, and the PRAN Card will be sent to the
subscriber’s registered address. The PRAN Card is a document with PRAN,
subscriber’s name, father’s name, photograph, and signature/thumb impression.
The facilitation of availing your PRAN card online
seeks to remove all the hassle of going through numerous paperwork and
appointments that are time-consuming.
Remember, opting to apply for the PRAN Card online and
subsequently deciding to pursue the NPS Tier 2 account is a personal financial decision. It
must be made after carefully examining and comprehending the financial
implications, requirements, benefits, and risks.
Disclaimer:
This guide only serves intended informational and
educational purposes. Potential investors or subscribers should gauge all the
pros and cons of trading in the Indian financial market before making any
financial commitment.
Summary:
The National Pension System (NPS) in India is a
significant financial investment that one can embark on for their retirement.
To open an NPS account, you need the Permanent Retirement Account Number
(PRAN). Applying for it online can save lots of time and paperwork. This guide
aims to help you streamline the process of acquiring your PRAN card through
online platforms like eNPS. Remember, investing in the Indian financial market,
like any other investment arena, requires careful understanding and analysis.
Make sure to weigh all pros and cons before entering into any financial
commitment.
