NPS or National Pension System, regulated by PFRDA, is a milestone in the development of a sustainable and efficient voluntary defined contribution pension system in India. The objectives include:

  • To provide old age income
  • Reasonable market based returns over the long term
  • Extending old age security coverage to all citizens


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

  • A unique Permanent Retirement Account Number (PRAN) will be allotted. This PRAN can be used anywhere across India.
  • PRAN will provide access to two personal accounts:
  • Tier-I pension account: This is a non-withdrawable account wherein savings for retirement will be contributed.
  • Tier-II savings account: This is a voluntary savings facility. Withdrawal can be done as per our wish.
  • Under NPS, the way money is invested will depend upon our choice. NPS offers a number of fund managers (six) and multiple investment options (three) to choose from. In case if we do not want to exercise a choice as regards asset allocation, the money will be invested as per the “Auto Choice” option.
  • We can open an NPS account with authorized branches of service providers. We also have the option to shift from one branch to another branch of a POP at our convenience.
  • The tax benefits under NPS will be as per the provisions of the Income Tax Act, 1961 as amended from time to time.

Getting Started

Citizen of India can enrol in the NPS at any time if you are a citizen ofIndia(Age 18-60yrs).

  • The earlier we start, the greater will be the growth of pension wealth.
  • To enrol in the NPS, submit the Registration Form (UOS-S1) to the POP-SP. The form is available from POP-SPs and the PFRDA web site (www.pfrda.org.in).
  • After the account is opened, CRA will mail a “Welcome Kit” containing the Permanent Retirement Account Number (PRAN) and other details relating to the account.
  • A Telephone Password (TPIN)  will also be sent to access the account on the
  • NPS toll free telephone number (1-800-222080). Also an Internet Password (IPIN) will be provided for accessing the account on the CRA Website (www.npscra.nsdl.co.in).
  • The first contribution is made ta the time of applying for registration at any POP – SP. The contributions are made subject to the following conditions:
    • Minimum amount per contribution – Rs 500
    • Minimum contribution per year – Rs 6,000
    • Minimum number of contributions -01 per year
    • Over and above the mandated limit of a minimum of one contribution, frequency of the contributions can be decided and made across the year as per our convenience.