eNPS: effective way to join pension system

For all successful online payments, the applicant will be provided an online receipt and the PRAN generated thereafter

eNPS: effective way to join pension system

eNPS is an online platform provided by National Pension System Trust (NPS Trust) for enabling individuals to open their individual pension accounts under NPS and also facilitate new or existing subscribers to make initial or subsequent contributions to their individual pension accounts under NPS using netbanking or debit/credit cards.

How to open NPS a/c through eNPS
An individual can open his/her individual pension account under NPS by choosing any one of the following alternatives:
Through use of Aadhaar, or
Through PAN, bank KYC verification

In case the individual uses Aadhaar for account opening, he/she will get a one time password (OTP) on his/her mobile phone and also on email registered with UIDAI (Unique Identification Authority of India).

Once the individual enters the OTP sent to him/her and submits it, the individual’s KYC details (demographics and photograph) as recorded in Aadhaar database get auto populated on the online application form. Only the photograph is allowed to be replaced/substituted in the online application form if he/she desires to upload a different photograph. The individual is required to choose the pension fund and investment option, and also to fill up the other mandatory fields like nominee details, bank account details etc, for completing the account opening process.

Netbanking facility
Furthermore, an individual opting to open the online NPS account using PAN and KYC details as recorded with his/her bank must have netbanking facility in his/her account. Further, the concerned bank selected should also be empanelled on the eNPS platform for performing the KYC verification. Currently, 25 banks are participating on this platform. The list of empanelled banks is available on the eNPS platform.

An individual providing PAN details will be required to compulsorily fill all the mandatory fields as mentioned earlier for completing the account opening process and subsequent generation of permanent retirement account number (PRAN).

The name provided in the online application form is validated with the PAN records. The bank and address details provided in the online application form is authenticated by the concerned bank selected by the applicant as per the records available with the bank in respect of the applicant.

In case of rejection of KYC by the selected bank, applicant should contact the bank as the PRAN will immediately get categorised as ‘temporarily frozen’ and the subscriber will not be allowed to undertake any further transactions.

Further, the individual opening the individual pension account using PAN card in eNPS platform is required to upload his/her scanned photograph and signature in .jpeg/.jpg format with file size ranging between 4kb and 12kb.

However, uploading of scanned photograph is optional for individuals opting to open the individual pension account using Aadhaar.

An applicant on submission of completed application form and subsequent authentication of Aadhaar or PAN will be provided with a unique acknowledgement number for identification and future reference.

Thereafter, the applicant will be directed for initiating payment of initial contribution through netbanking or debit/credit card, if he/she has chosen to open the account through Aadhaar.

If the applicant has opted to open the individual pension account with PAN and KYC authentication by bank, he/she will be required to make the initial contribution though netbanking facility provided by the concerned bank selected in the online application form.

For all successful online payments, the applicant will be provided an online receipt and the PRAN generated thereafter. An SMS and email alert will also be sent to the applicant. The online opening of individual pension account with Aadhaar is free of charge except an amount towards payment gateway charges. For accounts using PAN and KYC authentication by bank, an amount of Rs 125 for KYC verification will be charged by the concerned bank selected by the applicant during the online account opening process.

Charges on online contribution
A subscriber contributing to his PRAN in the eNPS platform will be charged the following fees by the payment gateway service provider (see chart):-

What to do after completion of online account opening process
After completion of online account opening process, the applicant should take a print of the online application form, paste his/her photograph (not stapled or clipped or signed across), put his/her signature in the box provided for in the printed application form and dispatch the documents to the address mentioned in the downloaded application form.

The applicant opening the account through Aadhaar is given an option to eSign the application with the use of his/her Aadhaar and in such case the requirement of sending the physical form to CRA will not arise.

There are no limits or restrictions for making contributions by applicants to his/her PRAN using the eNPS platform. It normally takes three working days for the contributions made online using eNPS to be reflected in his/her PRAN.

Activation of Tier II account
A subscriber having a Tier I account can activate his/her Tier II account online through eNPS platform. For activation of Tier II account, PAN is mandatory.

Making subsequent contribution
All subscribers (excluding NPS Lite & Atal Pension Yojana) irrespective of their PRAN being generated through online (eNPS) or physical mode (PoP) can contribute to their PRAN (Tier I & Tier II) using eNPS platform through netbanking of empanelled banks or through credit /debit cards.

A subscriber is required to quote the correct PRAN and authenticate it using the OTP received by the subscriber in his/her registered mobile while initiating the payment for contribution towards his/her PRAN.

(The writer is Chairman, PFRDA (Pension Fund Regulatory and Development Authority)

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