National Pension System

Pension plans provide financial security and stability during old age when people don’t have a regular source of income. Retirement plan ensures that people live with pride and without compromising on their standard of living during advancing years. Pension scheme gives an opportunity to invest and accumulate savings and get lump sum amount as regular income through annuity plan on retirement.

To provide social security to more citizens the Government of India has started the National Pension System.

Government of India established Pension Fund Regulatory and Development Authority (PFRDA)– External website that opens in a new window on 10th October, 2003 to develop and regulate pension sector in the country. The National Pension System (NPS) was launched on 1st January, 2004 with the objective of providing retirement income to all the citizens. NPS aims to institute pension reforms and to inculcate the habit of saving for retirement amongst the citizens.

Initially, NPS was introduced for the new government recruits (except armed forces). With effect from 1st May, 2009, NPS has been provided for all citizens of the country including the unorganised sector workers on voluntary basis.

Additionally, to encourage people from the unorganised sector to voluntarily save for their retirement the Central Government launched a co-contributory pension scheme, ‘Swavalamban Scheme– External website that opens in a new window‘ in the Union Budget of 2010-11. Under Swavalamban Scheme– External website that opens in a new window, the government will contribute a sum of Rs.1,000 to each eligible NPS subscriber who contributes a minimum of Rs.1,000 and maximum Rs.12,000 per annum. This scheme is presently applicable upto F.Y.2016-17.

NPS offers following important features to help subscriber save for retirement:

  • The subscriber will be allotted a unique Permanent Retirement Account Number (PRAN). This unique account number will remain the same for the rest of subscriber’s life. This unique PRAN can be used from any location in India.

PRAN will provide access to two personal accounts:

    • Tier I Account: This is a non-withdrawable account meant for savings for retirement.
    • Tier II Account: This is simply a voluntary savings facility. The subscriber is free to withdraw savings from this account whenever subscriber wishes. No tax benefit is available on this account.

Who can join NPS?

Any individual between the age of 18 and 60 years can open a pension account under NPS through eNPS using one of the following options.

Option 1 – Registration using Aadhaar

✔  You must have an ‘Aadhaar number’ (with a mobile number registered with Aadhaar)

✔  Your KYC in NPS will be done using Aadhaar through One Time Password (OTP) authentication

✔  OTP for the purpose of authentication will be sent to the mobile number registered with the Aadhaar

✔  Your demographic details and photo will be fetched from Aadhaar database and populated in online form

✔  You need to fill up all the mandatory details online

✔  You would be required to upload your scanned signature (in *.jpeg/*.jpg format having file size between 4kb – 12kb) as part of the registration process

✔  In case, you wish to replace the photo obtained from Aadhaar, you may upload a scanned photograph

✔  You will be routed to a payment gateway for making the payment towards your NPS account from Debit/ Credit card or Internet Banking

Option 2 – Registration using PAN (KYC verification by Bank)

✔  You must have a ‘Permanent Account Number’ (PAN)

✔  Bank account with the empanelled Bank for KYC verification for subscriber registration through eNPS

✔  Your KYC verification will be done by the Bank selected by you during the registration process.Name and address provided during registration should match with bank records for KYC verification. If the detail don’t match , the request is liable for rejection.In case of rejection of KYC by the selected Bank, applicant is requested to contact the Bank

✔  You need to fill up all the mandatory details online

✔  You need to upload your scanned photograph and signature in *.jpeg/*.jpg format having file size between 4kb – 12kb

✔  You will be routed to a payment gateway for making the payment towards your NPS account from Internet Banking

  In addition, NRI subscribers should,

✔  Select the Bank Account Status i.e., Non-Repatriable account or Repatriable account

✔  Provide the NRE/NRO bank account details and upload scanned copy of passport

✔  Select the preferred address for communication i.e., Overseas Address or Permanent Address (communication at overseas address would entail extra charges)

After Permanent Retirement Account Number (PRAN) is allotted, subscriber can use one of the following options:

Option 1 – eSign

For Tier I PRANs generated through Aadhaar, you have option to eSign the document by following the below mentioned steps:

✔  Select ‘eSign’ option in the eSign / Print & Courier page

✔  OTP for the purpose of authentication will be sent to your mobile number registered with the Aadhaar

✔  After Authentication of Aadhaar, Registration form will be successfully eSigned

✔  Once a document is eSigned, you need not send the physical copy of form to CRA

✔  eSign charge ₹ 5 plus GST

Option 2 – Print and Courier

✔  Select ‘Print & Courier’ option in the eSign / Print & Courier page

✔  You need to take a printout of the form, paste your photograph (please do not sign across the photograph) & affix signature

✔  You should sign on the block provided for signature

✔  The photograph should not be stapled or clipped to the form

✔  The form should be sent within 90 days from the date of allotment of PRAN to CRA at the following address or else the PRAN will be ‘frozen’ temporarily

  • Central Recordkeeping Agency (eNPS)
  • NSDL e-Governance Infrastructure Limited,
  • 1st Floor, Times Tower,
  • Kamala Mills Compound, Senapati Bapat Marg,
  • Lower Parel, Mumbai – 400 013

Processing of subsequent contribution:

All existing subscribers (registered through both online and offline mode) can contribute in Tier I & Tier II account using ‘eNPS’. To contribute online, you need to

✔  Have an active Tier I / Tier II account

✔  Authenticate your PRAN using the OTP sent to your registered mobile number

✔  Pay through your Debit / Credit card or use Internet Banking option.

✔  POP Service Charges will be applicable on the contribution amount @ 0.10% (subject to minimum of ₹ 10 and maximum of ₹ 10,000 per transaction). This service charges will not be applicable for subscribers registered in eNPS through Aadhaar

Processing of APY Application:

Any individual between 18 -40 years (39 years 364 days) can initiate opening an Atal Pension Yojana account through eNPS platform using following process:

Registration using Aadhaar

✔  You must have an ‘Aadhaar number’ (with a mobile number registered with Aadhaar)

✔  Select the bank where you have an existing saving bank account

✔  Enter savings bank account number for selected bank

✔  OTP for the purpose of authentication will be sent to the mobile number registered with the Aadhaar

✔  You need to fill up all the mandatory details online

✔  APY PRAN allotment will be subject to verification of details and upload of subscriber registration file by bank.

✔  APY registration through eNPS, first contribution is mandatory. Kindly keep a sufficient balance in your savings bank account to avoid rejection.

eSign the document

Request for APY through Aadhaar, you have to eSign the document by following the below mentioned steps:

✔  Select ‘eSign’ option in the eSign.

✔  OTP for the purpose of authentication will be sent to your mobile number registered with the Aadhaar

✔  After Authentication of Aadhaar, Registration form will be successfully eSigned.

✔  Once a document is eSigned, you need not send the physical copy of form to CRA

✔  eSign charge ₹ 5 plus GST


  1. NPS SABSE KHRAB HAI mera 150000 hai compney nahi de ri hai my name is deepak kumar

    nps bolta hai ki 10 saal ka locking perioud hai

    apna paisa time per kaam na aaye to paisa kis kaam ka

    koi hai jo mera paisa nikalwa sakta hai contact me 9627287715

    • If you are literate individual you must have read the terms and conditions of NPS clearly 🙂

      If you’re holding a Tier I account there is no way you can withdraw the amount. Period.

      Tier I Account: This is a non-withdrawable account meant for savings for retirement.
      Tier II Account: This is simply a voluntary savings facility. The subscriber is free to withdraw savings from this account whenever subscriber wishes. No tax benefit is available on this account.

  2. What hs govt done for decent living for senior citizens specially very senior citizens above 85 yrs who have depleted their savings, no one to support financially and are incapacitated wanting more funds for their living. Which scheme can they join

    • Everybody starts screaming for their rights.. nobody wants to talk about their duties. What have you done to ease off the interest burden on the Government? Talk to your children and family for your support!

  3. Sir, I am Jayaraman aged 72 years, worked in private sector. Now I am not in a position to support my living, I do not have any savings or fixed deposit to get interest on that, is there any help scheme for people like me from the government, if so how to approach. Please let me know ? I have Adhaar number and PAN.


  5. The website provide column for ‘leave a reply’. Individuals are commenting in regard to their queries about NPS. As is seen no answer/solution is provided in this website. Pz arrange suitable reply/solution for the queries as quoted above.

    RS Patwal

  6. Thanks for the immediate reply. Please answer the queries the individuals. Further, I have a query. If I deposit 1.50 lakhs for 5 years in NPS, then how much I shall get pension per month upto which age. Is there any provision that after a certain age, the deposited amount is returned to the individual. Hope I shall get proper reply. Thanks


    RS Patwal

    • NPS benefits accrue till the age of 60 years. You cannot withdraw before that! And after 60 years too, you can withdraw a certain %age of it.

  7. my deposit amount 150000 a long time acount opening date 26.08.2012 my pran no.1110027225422

    i don’t widraw my balance ………… so any sir/mam widraw my acount balance

  8. सर ये फाईल हिन्दी मे नहीं होने के कारण मेरे को समझ मे नहीं आई !सर अगर इसका परफोर्मा हिन्दीं मे हो तो भेजे !

  9. What will be the rate of return on investment under NPS and APY.
    Please provide the details.

  10. My account number is 01142000011590 hdfc bank account name is smart cool my phone number is 8369377401

  11. mai lic agent hu year 2010 se mera samvardhan schime ke tahat 3000.00 monthly deduction ho raha hai kya muje isi schime me rahna chahiye ya new schime me jana chahiye pl suggest me

  12. All of You can contact the CRA helpline at the toll free number (1-800-222080) and register a

  13. Hi
    Sir mai nps schema ka istmal 2008 she kar raha hu jab 20 saal ppure ho jayege to muje kitna paisa milega

    • 20 saal nahi, 60 saal ki umar ke baad milega. Koi return guarantee nahi, paisa doob bhi sakta hai. Yaar tum log bina FAQ padhe hi invest kar dete ho?

  14. User unfriendly. Tried to make online contributions thru sbi epay using my debit card but without success. Submitted online grievance token no. 10355876 on 1.5.18, reg no.6396950) but no reply so far. The telephone helpline is most atrocious, the customer care officer would not take your call, just keep talking to the computer on ivrs !

    MOBILE NO-9414418183
    EMAIL- [email protected]

  16. I am working at Indian Railway and I have joined my duty at 2006-7 wherein I cannot withdraw I my money as when it is required. please suggest some suggestion for which I can withdraw money in urgency.

  17. सर नमस्कार मेरी उम्र 39वर्ष हो गई है मैं 5000हज़ार रु सालाना NPS लेना चाहता हूँ मुझे 60वर्ष के बाद कितनी पेंशन मिलने लगेगी कृपया जानकारी देने की कृपा करें।

    • आपको कितनी पेंशन मिलेगी कोई कुछ नही कह सकता कारण एन पी एस मे जितनी राशी जमा होती है वह mutual फंड मे निवेश होती है जो की शेअर मार्केट पर निर्भर है।आपके 60 साल पुरे होणे के बाद शेअर मार्केट मे आपके फंड की उस वक्त जो किमत जोगी उस के नुसार आपके फंड के 40 प्रतिशत पर आपको पेंशन मिलेगी।बाकी 60 प्रतिशत रक्कम आपको एकसाथ मिलेगी।

  18. Hello, I have already taken APY pension plan. Is it necessary to take NPS plan also ??
    What is the difference between these two ??

    • Cannot. APY and NPS are for people under 60 years of age. You can ask your father to open Senior citizen savings scheme. The Senior Citizens Savings Scheme (SCSS) is primarily for senior citizens of India that offers regular income and is a risk-free tax saving investment.

  19. I have PRAN. What is Pran and how do I get details relating to that?
    Whan I was LIC Agent in 2011, PRAN was allotted to me by LIC but I don’t know anything about it.
    In the starting stage i.e. in 2012 and 2013 I got some statement from NSDL relating to that pran but now how could I get detail about it?

    • Go to NSDL site and log in using your PRAN (Permanent Retirement Account Number) to see the details of your contribution.

  20. Wow, marvelous weblog layout! How lengthy have you been blogging for? you made blogging glance easy. The overall look of your website is fantastic, as well as the content!

  21. sir, i have 35year,s old.

    sir mai kis tarha se painstion le sakta ho. kya karna chahiye.
    pileas sir informition do.

  22. I m interested in nps but i want to know will my children get my saving amount after my death.n hw much i will get if i deposit 150000

  23. Tier ll account means simply a savings account it. don’t have the benefit of pension. Please clarify….

  24. I am working in private company, my age is now 54 years can i join the scheme.

  25. I was trying to register at NPS website for PRAN as NRI wherein it asks for bank where my account exists. I that list ,I could not find Axis bank. Any reason for keeping this bank out? Whats the alternative for me

  26. Dear sir this Is Santosh, I had already in swavalamban pension scheme, can I join in NPS? NPS has any income tax exemption?

  27. What is the policy for withdrawal of nps TIER 1 scheme if he resigns from the job???Will the full contribution be paid if service year is more than 5 yrs but less than 6 yrs???

  28. Do I need to invest each month or can I opt for one time investment. If I invest 2 Lakhs as one time investment what is the Pension that I will get post 60 years.

  29. On 03.05.2018 i had given my details but till now i had not got my orignal papers back.Is anybody see the mails and act today is 15.05.2018 after passing 12 days nobody care to reply.T.C.GORA

  30. Sir / Madam,

    kindly confirm whether House wife can join the scheme and pay money. what is the term for payment to get a monthly Rs.5000/- pension. the age is 50yr pl provide details.


    C Chandrasekar

  31. Main NPS mein account khula tha. My PRAN No is 110142484922. Card has been received but PRAN password not yet received. What is further action please guide me.

  32. we her is the open NPS Accound online or any bank , bank was no details about nps ,they only APY provaed

  33. Madhupam Krishna, 17+ years experience in Mutual Funds & Wealth Management
    Answered Aug 26, 2016
    Yes NPS is one of the best investment for people working in private sector and not getting pension when they retire. It is the cheapest way to invest in annuity and get pension after retirements.


    NPS or the New Pension Scheme was launched in India on May 1, 2009. It is a scheme which enhances the social security in our country and its aim is to provide social security after retirement. Till the launch, in India we had a Defined Benefit Plan. As the name suggests the returns were fixed and if there is a shortfall in the fixed return, Government would compensate. The NPS is a Defined Contribution Plan, where the returns would not be fixed.

    In his election speech in 1935, Franklin Delano Roosevelt said “it is the moral obligation to honor the right of citizen to live with dignity even in the retired life”. When it comes to pension or social security, our eyes turn to the Government. In India also, the charm of being a government servant is the Pension that you get in your retirement years. So to reduce the burden on its expenses the NPS was introduced by the exchequer. Around 8 Crore investors are estimated to be eligible to join this scheme.

    Regulator: Pension Fund Regulatory and Development Authority (PFRDA) is the regulator for the NPS. PFRDA was established by the Government of India on 23 August 2003 to promote old age income security by establishing, developing and regulating pension funds.

    Applicability: All new entrants to Central Government services (other than Armed Forces) after Jan 1, 2004, would compulsorily join this scheme. All Indian citizens Aged 18 to 60 can voluntary join the scheme. The exit age will be 60 years.

    Contribution Requirements: A minimum contribution of Rs 6000 would be compulsory per year. Minimum amount per contribution is Rs 500 and a minimum of 4 contributions in each quarter of the year for each subscriber account is required.

    Structure: Under NPS, each subscriber would be allotted a unique 16 digit Permanent Retirement Account Number (PRAN). This number would be portable. The records of transactions and investor would be maintained by Central record Keeping Agency (CRA). At present NSDL is the CRA and in future the number of CRA would be increased. The subscriber has an option to invest with seven Pension Fund Managers (PFM). He also has the option to choose any one or multiple PFM to manage his contributions. These PFMs will have 3 kinds of funds categorized as E for Equity fund, G for fund investing in Government Securities and C for Fixed income securities other than Government Securities. Also the scheme is structured in two tiers. Tier I will not allow premature withdrawals and Tier II accounts would permit withdrawals.

    Investment Charges: The NPS levies an investment charge of .00009% of the asset under management. Initial charges of account opening would be around Rs 470. From second year onward the charges would be Rs 350 per annum. Also a charge of Rs 15 would be applicable for each transaction. These charges are bound to come low once the investor base increases.

    Tax Treatment: The contribution under Tier I account would qualify under the Sec 80c of the Income tax, but withdrawals from this scheme would be taxable under the EET (exempt-exempt-tax) system.

    The Pension Fund Managers: At present there are seven PFMs. These are UTI, SBI, LIC, Kotak, Reliance, IDFC and ICICI Prudential.

    How can I apply for the NPS: The scheme is offered through 23 Point-of- Acceptance or POS. The major ones are SBI and its 7 associate banks, ICICI Bank, IDBI Bank, OBC, Allahabad Bank, CAMS etc. Not all the branches of these POS offer the information and services for NPS. You can check the website of the particular POS or call there toll free number to get the information about the availability of this scheme.

    Should you go for it or not?

    If you are working in private sector or have your own business, this is one of the best offerings under retirement planning. The scheme strives to offers maximum returns in the lowest cost scenario. The PFMs are all credible names and the servicing would improve once the scheme increases its awareness and subscribers. Your agent would not recommend this scheme as he gets no remuneration to advise this scheme. So instead of falling prey to the lucrative advertisement by Insurance Companies to prosper your retirement, get your NPS account now.

    11.8k Views · View Upvoters

  34. Sheth Nirav
    Answered Aug 19, 2017
    No, it’s not good to invest in NPS.


    After investing in NPS you are not owner of your money. Withdrawals is as per Government policy.
    At the age of retirement, 60 % of your investment will be returned remaining re-invested wherein returns are very less.
    3. government change may result alteration of scheme. Previously few government scheme were closed due to change in government.

    Advantage by investing in mutual funds

    If one invest in mutual funds (5star rating) return are good in time span of 10 years.
    You can take benefit of equity market.
    you can withdraw money as and when required. You are owner of your money.
    Ultimatly, when you invest in MF, you are father of your money. But when you invest in NPS, you become obedient son, who looks happy, praised by father but can not enjoy the life with friends and family in time as there is no money in hand.

  35. Saarang Agarwal, studied at The Institute of Chartered Accountants of India (2016)
    Answered Dec 28
    You can. Its good or not depends on your tax rate, if you are in 20% or 30% bracket you can save a significant amount.
    NPS is taxed on EET basis i.e. Exempt on Contribution, Exempt on earnings, Tax on Withdrawal.
    Exemption on Contribution:
    1. Employee’s contribution 80 CCD (1) – Within section 80C.
    2. Employer’s contribution 80 CCD (2) – Upto 10% of your Basic + DA (No maximum limit apart from 10%)
    3. Self Contribution – 80 CCD (1B) – Upto Rs. 50,000/- over and above 80C.
    Below is a comparison between NPS and Mf assuming tax rate @30:-
    Option 1: NPS of Rs 50,000.
    Cash in hand – Rs. 50,000 (Tax is exempt)
    Mr. A invests Rs50,000 yearly in NPS for 35 yrs and earns a return of 10% (assumed)
    Corpus after 35 years – Rs. 14,956,340.27 ( Rs. 1.5 cr approx.)
    Out of this Rs. 1.5 cr now upto 60% can be withdrawn (tax free upto 40% only rest 20% will be taxable). Remaining amount to be invested in annuity and pension from the same is taxable.
    Option 2:
    NPS – 0 , Tax on rs. 50,000 = Rs. 15,000.
    Cash in hand = Rs. 35000 which is invested by Mr. A in a MF every year for 35 years giving return of 12% assumed)
    Corpus: Rs. 16,956,209.06 (Rs. 1.7cr. approx.)
    This 1.7 cr is tax free as per current income tax rules.
    What did we learn ?
    Cons of NPS.
    1) If you can earn a little more return in mutual funds then Tax advantage of NPS contribution will be nullified.
    2) NPS on retirement is mostly taxable (only 40% is exempt).
    3) If you want lump sum withdrawal on retirement, its possible only upto 60% in NPS.

    • hi. shy employers willcontribute to
      nps. I need more details. can i hv ur mail id or phone no pls

  36. After going through all the comments, the result drawn is that NPS is most suitable for tax saving purpose.
    For people who don’t need to pay income tax NPS is not the best option.

  37. I hv tier 2 account in NPS and i want to withdraw my money so tell me the way how can i withdraw my money.

  38. I am in paramilitary and joined my duty on 2004 so I come under NPS ,here I want to know how much I will get if I take volunteer retirement after completion of 20 yrs service .pls info

  39. When I entered PRAN no then I got reply that , not found in data base what I have to update PRAN

  40. If getting already pension from defence, can I also enroll for this pension scheme? Will I get both pensions

  41. My name is Amit Roy, i am interested to join this pension scheme,
    what i have to do? let me know?

  42. Sir, I am working in Co-operative Sector and my present age is 52 years. Then pl let me know how much amount to be paid to you yearly and how much year as my retirement is after 60 years.

  43. What about people above 60, EPF amount will not be there it seems Government will be happy if these 60+ people eliminate themselves.

    Why MLA and MPs get high pension for which no age limit is fixed.
    Is it fair on part of Government?

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