What this scheme offers
NPS lets you build a retirement corpus through regular contributions, invested across equity, corporate bonds and government securities in a mix you can choose (Active Choice) or that automatically shifts to lower risk as you age (Auto Choice). The mandatory Tier I account is where tax benefits apply — up to ₹1.5 lakh under Section 80C, plus an extra ₹50,000 under Section 80CCD(1B), and employer contributions up to 10% of basic salary under 80CCD(2). An optional Tier II account works like a flexible savings account with no lock-in, though it carries no tax benefit for most subscribers. At 60, you can withdraw up to 60% of your corpus tax-free as a lump sum; the remaining 40% must go into an annuity providing regular pension income. The NPS Vatsalya variant, introduced in 2024, lets parents open and contribute to an NPS account for a minor child, which converts to a regular account once the child turns 18.
Who is eligible
- Any Indian citizen (resident or non-resident), aged 18 to 70, can open an individual NPS account.
- Available to employees of the public, private, and unorganised sectors — members of the armed forces are covered under a separate pension framework instead.
- Overseas Citizens of India (OCIs), Persons of Indian Origin (PIOs), and Hindu Undivided Families (HUFs) are not eligible — NPS is strictly an individual account.
- Must complete KYC norms (identity and address proof).
Documents required
- PAN card
- Aadhaar card
- Active mobile number and email ID
- Bank account details, with net banking or UPI for online contribution
How to open an account
- Visit the eNPS portal (enps.nsdl.com) or the KFintech NPS portal (nps.kfintech.in) for fully online registration.
- Complete the online form using your PAN, Aadhaar (for e-KYC via OTP), and bank details.
- Choose your fund manager and investment mix — Auto Choice (age-based, lower effort) or Active Choice (you set the equity/debt split yourself).
- Make your initial contribution — minimum ₹500 for Tier I, and keep at least ₹1,000 contributed annually to keep the account active.
- You'll receive a Permanent Retirement Account Number (PRAN) — your unique NPS identifier for life.
- Alternatively, visit any bank branch or post office acting as a Point of Presence (PoP) to open an account offline.