Steps to invest in NPS scheme

Saving the tax expense that would be incurred is one of the most common investment objectives amongst other goals. There are a plenty of tax saving options providedunder Section 80C of the Income Tax Act, 1961. These options provide the provision to deduct up to Rs 1,50,000 from the taxable income. Apart from these, there are multiple choices which could also be tax-saving. Investment in the National Pension Scheme (NPS) makes the investor eligible to deduct up to Rs 50,000 from the taxable earnings. In addition to the tax benefits, it aims to provide old age income in a simple, flexible and regulated manner. An individual need not be an employee from the government sector to receive the National Pension Scheme benefits. Rather, any Indian Citizen of the age between 18 to 65 could start investing in the NPS.

One can apply for joining the NPS scheme by filling the application form, available either with Point of Presence – Service Providers (POP-SP) or online at


  • The Permanent Retirement Account Number (PRAN) application form procured from the POP-SP must be filled up with proper details, photograph, signature, preference of scheme etc.
  • Also, the KYC documents along with the identity and address proof must also be submitted along with the form.
  • While submission of the form, the POP-SP will provide a receipt number. This receipt number is used for tracking the application status.
  • The first contribution made in this must be at least Rs 500, during which the Instruction Slip mentioning the payment details must also be submitted.
  • The PRAN Card will be sent to the address of correspondence.

Online Application:

  • One who is willing to join the scheme must log on to the eNPS website.
  • The details regarding the PAN, age, email ID, address, phone number has to be furnished by the applicant. The mobile number linked with the PAN will receive an OTP on submission of the above details.
  • The choice of account type preferred must be specified. A Tier II account cannot be opened individually, however Tier I / Tier I & II can be opened.
  • The desired Pension Fund Manager must be selected from the list of options available.
  • The investment mode must be selected: Either Auto or Active mode. In the active mode, the fund allocation is done at the discretion of investor. Whereas, in the auto mode, the equity allocation is done automatically.
  • The nominees must be assigned and their details should be furnished.
  • The scanned copies of required documents must be uploaded including PAN, passport-size photograph and digital signature in the specifies size and format.
  • The initial contribution (Rs 500 for Tier I & Rs 1000 for Tier II) must be made to the NPS account, using Internet Banking, Credit or Debit cards.
  • Subsequent to the payment, the filled-in copy of the registration form could be downloaded. The PRAN will be generated.
  • The downloaded form attached with the photo must be e-mailed to the Central Recordkeeping Agency (CRA) within 90 days. The CRA will deliver the PRAN card and scheme documents to the registered address.

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