Investing is not just a means to grow your wealth but also to secure your retirement. While there are several schemes to cater to your retirement needs, NPS is a popular option that many rely on.
The reason for its popularity goes beyond retirement benefits, as you can enjoy tax deductions at the time of investments and maturity too. But before making any investment, knowing the ins and outs of the investment process is crucial.
Having this knowledge can help you enjoy a seamless investment experience.
Key Facts About NPS
A key piece of information to know about investing in NPS is the PRAN card. PRAN, or Permanent Account Number, is a 12-digit number allocated against your NPS account. This is a lifetime number allotted to you for both Tier I and Tier II accounts.
Through your PRAN card, you can check the balance in your NPS account at any time, from anywhere. You can also update essential information through this, making it a crucial part of your NPS investment.
To learn how you can apply for a PRAN card, the documents you need, and more, read on.
Follow the steps outlined below to register for a PRAN card online:
- Visit the NSDL website
- Navigate to registration under the NPS section
- Choose the registration option (Aadhaar, PAN, CKYC, Digilocker)
- Select the applicant type (Individual, Corporate, Government)
- Choose account types (Tier I or Tier I and II)
- Enter the other details
- Click on Generate OTP
- Upload the signature as per the norms
- Complete the payment
Ensure that all the information you enter is accurate and matches your current details. This is because, in case of any mismatch, your registration request may be rejected.
Given below are the steps you can follow to register for PRAN offline:
- Visit the nearest PoP (Point of Presence) for NPS
- Fill out the PRAN card application form
- Attach all the necessary documents
- Cross-check all the details
- Submit the form with the documents
- Make the payment for your investment
Be sure to keep the documents handy and up to date. This will help you have a seamless investment experience. Whether applying online or offline, you will receive an application number.
Keep this number secure to check your application status when needed.
Information in PRAN Application Form
Knowing the information you need to fill in the PRAN card application form will enable you to fill out the application form quickly and accurately.
Given below is the general information you need to fill in the application form:
- Personal details: Name, address, and other personal information
- Employment details: Current employment details
- Nomination details: Details of the one who gets access to the funds in your absence
- Scheme details: Information about the investment and fund allocation
- Declaration, if any
Documents Required for PRAN Card
While knowing the steps to apply for a PRAN card is essential, you also need to know the documents you need to submit. This will allow you to keep everything ready while applying.
Given below are the general documents you need to submit:
- PAN card
- Aadhar card
- Passport, for NRI applicants
- Passbook/ Cancelled cheque
How to Check PRAN Card Status
Generally, dispatching your PRAN card takes about three weeks. During this time, you can track the status of your application. Given below are the steps you can follow:
- Visit the NPS NSDL website
- Go to the section for tracking application status
- Enter the application number and captcha
Once you submit the details, the status of your application will appear on the screen. You can also contact your respective nodal office to know the status. Be sure to quote the correct 17-digit number given at the time of submitting the application.
Benefits of Investing in NPS
NPS is a PFRDA-regulated and government-backed scheme curated for retirement planning.
Given below are the top benefits you can enjoy by investing in NPS:
- Tax benefits at the time of investment and annuity purchase
- Flexibility to allocate funds as per the requirements and tolerance
- Low-risk and secure investment avenue to grow your corpus
- Portability to keep your investment intact even if you change location or job
- Minimum investment requirements allow you to invest without any financial strain
- Compounding power to accumulate a substantial corpus on retirement
Now that you know how to apply for a PRAN card and other essential information, you can invest in your NPS account seamlessly. Visit the NSDL website and log in with your PRAN and the password you set.
Navigate to the section for contributing online and validate your NPS account and PRAN through birth date and OTP sent on your registered number. Once done, enter the amount you want to invest and complete the payment through your preferred payment method.
Be sure to invest as per your finances, retirement goals, and your risk tolerance. This way, you can avoid any undue financial hardship and have a stress-free investment experience and retirement.