NPS: Here’s how you can open Tier II account online and offline

New Delhi: National Pension System (NPS) is a pension cum investment scheme launched by the government to provide old age security to Indian citizens. It brings an attractive long-term saving avenue to effectively plan your retirement through safe and regulated market-based return. The scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA)and National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS.

This scheme offers two types of accounts- Tier I and Tier II. Tier I account is the pension account while Tier II is a voluntary savings account. NPS subscribers who hold Tier I account can open a Tier II account, at a later date, either offline or online.

To open a Tier II account, it is mandatory to have a permanent retirement account number (PRAN) and an active Tier I NPS account. The subscriber can approach the POP-SP for Tier II activation form or download the same from the link:
https://npscra.nsdl.co.in/download/government-sector/central-government/forms/C-023-15-NeGIL-CRA-NPS%20
Form%20Annexure%201.pdf

The subscriber can either retain his existing Tier I bank information or link a new bank account. If a new bank account is linked, all bank account details need to be provided. One can also retain his nominee registered in Tier I or make a new nomination for their Tier II account. While opening the account, the subscriber needs to choose the fund manager, investment option and asset allocation if they have selected ‘Active Choice’ option.

Documents required to open the account:

Copy of PRAN card
Cancelled cheque

It may be noted that the form should be signed and submitted to the POP-SP for processing and activation. An initial contribution of minimum Rs 1,000 can be made by a cheque.

In case of online account activation, the subscriber needs to login to the eNPS portal and click on the Tier-II activation tab under subscriber services. Details such as PRAN, date of birth, PAN are to be entered and then the form can be submitted for activation.

Subscribers must know that the Tier II account is a not a retirement account and hence they cannot claim any tax benefits against contributions here. There is no limit on the number of withdrawals abd the subscriber can determine the allocation to different asset classes

Source:-timesnownews

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