National Pension Scheme (NPS) Registration: A Step-by-Step Guide 

Retirement may feel like a distant dream, especially when you're just starting out in your career. But the sooner you begin saving for it, the better equipped you'll be to live comfortably in your golden years. The National Pension Scheme (NPS) is one of the most effective tools to secure your financial future. Whether you're a salaried professional, entrepreneur, or freelancer, understanding NPS registration and how to open an NPS account can be a powerful step in building long-term wealth.

In this guide, we’ll break down everything you need to know about NPS - from benefits to eligibility, documents required, registration process (online and offline), contribution methods, exit rules, and FAQs. Let’s dive in!

What is NPS – National Pension Scheme? 

The National Pension Scheme (NPS) is a government-backed retirement savings initiative regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It encourages individuals to contribute regularly towards a retirement corpus while enjoying market-linked returns over time. When you open an NPS account, your funds are invested in a diversified portfolio comprising equity, corporate debt, government securities, and alternative assets - based on your chosen investment preference or age-appropriate allocation.

The Government of India introduced NPS in 2004 for government employees as part of a broader pension sector reform. In 2009, it was made available to all Indian citizens on a voluntary basis. The objective was clear: to promote a culture of disciplined long-term savings and reduce the financial pressure on traditional state-funded pension systems by shifting towards a more sustainable, self-contributory model.

Timeline: Evolution of the National Pension Scheme (NPS)

• 2004 – NPS launched for central government employees (excluding armed forces)
• 2009 – NPS made available to all Indian citizens on a voluntary basis
• 2015 – Atal Pension Yojana launched under NPS umbrella for the unorganised sector
• 2019 – Enhanced tax benefits under Section 80C and 80CCD(1B)
• 2021 – e-NPS Aadhaar-based online KYC introduced
• 2023 – PFRDA mandates email and mobile linking for all NPS accounts

Benefits of Investing in National Pension Scheme (NPS)

• Dual Tax Benefits: Contributions up to ₹1.5 lakh under Section 80C and an additional ₹50,000 under Section 80CCD(1B) are tax-deductible.
• Flexible Contribution: You can contribute monthly, quarterly, or annually—there’s no fixed amount or schedule.
• Choice of Investment: Choose your asset allocation (Active or Auto) and fund managers.
• Low Cost: One of the lowest-cost pension products with fund management charges starting at 0.01%.
• Portable Across India: You can operate your account from anywhere with a PRAN (Permanent Retirement Account Number).
• Attractive Returns: NPS has historically provided returns of 9–12% p.a. over the long term.
• Safe and Regulated: Managed by PFRDA and leading pension fund managers, ensuring transparency and security.

For example, if you invest ₹5,000 per month starting at age 25, by 60 you could build a corpus of over ₹1 crore, assuming 10% annual returns.

Documents Required for NPS Registration

To open an NPS account, you need the following documents:

• Proof of Identity: Aadhaar card, PAN card, Voter ID, or Passport
• Proof of Address: Aadhaar card, utility bill, passport, etc.
• Bank Account Details: Cancelled cheque or account number with IFSC code
• Photograph: Passport-size photo (for offline registration)
• Signature: Digital or physical (depending on registration mode)
• Mobile Number & Email ID: Mandatory for KYC and OTP authentication

Note: For online registration, ensure your Aadhaar is linked with your mobile for OTP-based eKYC.

Eligibility Criteria to Open NPS Account 

You are eligible to open an NPS account if:

• You are an Indian citizen (resident or non-resident)
• You are between 18 and 70 years of age at the time of registration
• You comply with KYC norms as prescribed by the PFRDA

Both salaried and self-employed individuals can register for NPS.

How to Register for NPS Account? 

You can open your NPS account either online or offline. Here’s how:

A) Online Process (via eNPS) 

1. Visit the official NPS website
2. Click on National Pension System → Registration
3. Enter your Aadhaar or PAN details and verify via OTP
4. Fill in your personal and bank details
5. Choose your fund manager and investment mode (Active or Auto)
6. Upload scanned documents and photograph
7. Make the initial contribution (minimum ₹500 for Tier I)
8. Set your password and get your PRAN instantly

Tip: Use eSign to avoid physical signature hassles.

B) Offline Process 

1. Visit any Point of Presence (POP) – like a bank branch or authorised NPS service centre
2. Fill out the NPS Subscriber Registration Form
3. Attach self-attested KYC documents and photographs
4. Submit to the POP-SP (Service Provider)
5. Make the initial payment
6. Receive PRAN card by post

Offline mode is preferred by those who are not tech-savvy or have limited internet access.

How to Contribute to Your NPS Account? 

• Tier I Account (mandatory): Minimum ₹1,000 per year
• Tier II Account (optional): Flexible withdrawals, acts like a savings account

You can contribute through:

• Online portals (eNPS, net banking, UPI)
• Offline via your POP
• Mobile apps like UMANG or NPS mobile app

You can track contributions and fund performance online 24/7.

Exit, Withdrawal, and Closing Your NPS Account 

You can exit NPS in the following ways:

Partial Withdrawal (Tier I)

• After 3 years
• Up to 25% of own contribution (not employer’s)
• For reasons like education, marriage, medical emergencies, or house purchase

Exit Upon Retirement (at 60) 

• Withdraw up to 60% tax-free as lump sum
• Remaining 40% must be used to buy an annuity for regular pension

Premature Exit (before 60) 

• Only 20% can be withdrawn; 80% must go towards annuity
• Applicable only after 10 years of account opening

Closing the NPS Account 

• Submit withdrawal form online/offline with proof of identity
• Select annuity provider and pension plan
• Processed within 30–60 days