National Pension Scheme (NPS) is a retirement oriented saving scheme launched by the Pension Fund Regulatory and Development Authority (PFRDA) in 2004. Citizens between ages 18-60 are eligible to open an NPS account and build a good retirement corpus.
The pooled money from subscribers is invested in various equity and debt securities that generate returns in the long run. PFRDA-registered fund managers manage the investment portfolio. The investors are free to change the fund houses if they think the performance of the fund isn't at par with the market's performance or any benchmark performance.
The investor can withdraw up to 25% of its investment in an NPS Account after three years of opening the account, but only under specific purposes such as purchasing a house, children’s education, wedding etc.
NPS accounts can be opened online as well as offline. Visit the PFRDA Website to open the NPS account online, and follow these steps:
Click on ‘Registration’ and select ‘register with Aadhaar’
After feeding in your Aadhaar Number, click on “Generate OTP” option.
You’ll receive an OTP on your registered mobile number.
After entering the OTP, add your details, nomination details, and bank details.
When the application is successfully submitted, your Permanent Retirement Allotment Number (PRAN) will be assigned.
Your photograph will be the same as in the ‘Photograph and Signature’ tab.
Click on ‘e-signature’ option, and again an OTP will be sent to your mobile number.
To verify your signature and to make payment, enter the OTP.