Non-resident Indians (NRIs) can, now, easily apply for an NPS or National Pension System account if s/he has a PAN card and a bank account. National Pension System is a voluntary and long-term investment plan for retirement. Under this, customers are allotted a unique Permanent Retirement Account Number (PRAN) to each subscriber.
Under Section 80CCD (IB), you can get an additional tax benefit of Rs 50,000 other than the Rs 1.5 lakh benefit under Section 80C if you invest in NPS.
As the NPS is beneficial for people who wish to plan for their retirement early on and has a low-risk appetite, private-sector job holders, including NRIs, may also opt for an NPS account.
If you are an NRI and looking forward to investing in the NPS but don’t have a clue about how to do it, keep scrolling.
Steps to Open an NPS Account Online
Firstly, you have to visit the NPS trust website, an eNPS portal where you need to register and go ahead with the application process.
Secondly, if you’re aged between 18 and 60 years, as per the Know Your Customer (KYC) norms, you are eligible to select your type of account between ‘Tier I’ and ‘Tier II’.
After choosing the applicant type ‘individual subscriber’ and status ‘NRI’, you have to select the account status ‘repatriable (NRE) or non-repatriable (NRO).
After entering your passport number from the drop-down list, you have to select the country of residence. Once selected, enter your Aadhar number and request a One-Time Password (OTP). Next, an NPS registration form will be popped up in which you have to enter your personal details, including contact and bank details, and proceed further.
Thirdly, you need to upload your scanned signature and photograph in jpg format.
Once your account is created, you have to transfer at least Rs 500 to your newly opened NPS account.
Lastly, you have to get a hard copy of the system-generated form, paste your photograph and make a signature and courier it to the Central Record Keeping Agency (CRA) of NPS. Once received by the CRA, it will generate a PRAN and notify you about it via mail or SMS.
Thus, you can open an NPS account online and can make all further subsequent transactions online.