How to open NPS account online using Aadhaar Card?

NPS tax benefits How to shift NPS account

NPS (National Pension System) has been getting better from taxation standpoint with each Union Budget. Last year, investors got additional tax benefit of Rs 50,000 under Section 80CCD (1B). This year, 40% of maturity corpus at the time of retirement was made exempt from income tax.

There has been a lot of buzz among tax-payers this year about investing in NPS. If you have decided to invest in NPS, the next step is how to invest in NPS. For that you need to open NPS account.  There are many ways to open NPS account. In this post, I will write about how to open NPS account online using your Aadhaar card.

Please understand this is not a recommendation to invest in NPS. You must first figure out whether NPS fits in your overall scheme of things and then invest. Do not invest in NPS merely to save taxes.

Must Read: NPS Tax Benefits and Tax Treatment at Maturity

How to open NPS account?

There is an offline process where you need to visit point of presence (POP-POP-SP) and complete the formalities. Branches of most major banks will figure in the list. For the net banking generation, this is asking for too much. There is good news for such subscribers.  You can open NPS account online sitting from the comfort of your home.  And there are many ways to open an account online. It does not take much time.

There are many ways to open account online.

  1. You can go to portals such as ICICIDirect and open NPS account online.
  2. You can go to eNPS Portal and open your account in two ways.
    1. Using a combination of PAN and bank account details
    2. Using Aadhaar details

I tried to open an account using Aadhaar details (I stopped short of opening the account). The procedure was quite simple. In this post, I will list down the steps needed to open an account online using your Aadhaar card through eNPS portal.

How to open NPS Account Online using Aadhaar card?

Step 1:  Go to eNPS Portal. Select Registration Option.

Step 2:  You will asked to enter your Aadhaar Number. You will get a One Time Password (OTP) on Aadhaar registered mobile number. I chose only Tier-1. There is no need to invest in Tier-2 account of NPS.

Step 3:  You keep providing details as requested. Most details will be automatically fetched from your Aadhaar information. Enter Personal, contact, bank account and nomination details. You will be asked to enter bank account details.  Piece of cake.

Step 4: You will be asked to select Pension Fund Manager.  You will be asked to select an investment option (Auto or Active). If you select Active, you will be further asked to specify allocation to Equity (E), Corporate Debt (C) and Government Debt securities (G).

For more on Auto or Active option, go through this post.  This is an old post but captures the investment options well.

Step 5:  Upload Signature and photograph. Photograph from Aadhaar card will be uploaded by default. If you wish, you can upload a different photograph. You will also be required to upload copy of your signature. You can sign on a blank sheet. Take a photograph or scan it. Upload the signature.

Step 6: You can go ahead and make the initial contribution. Minimum contribution is Rs 500. You can pay through Net Banking, debit card or credit card.

Your PRAN will be generated instantly. PRAN allocation letter and the welcome kit will be sent to your address in a few days. Do note PRAN will be generated only when you make the initial contribution.

Step 7: The process is still not complete. You will have to take out printout of this application form generated online and send to CRA (Central Recordkeeping Agency). The form should reach CRA within 90 days or else the account will be temporarily frozen. The account will be re-activated on receipt of form.

Even though the entire process does not much time, you do have an option to save the form and access it using the acknowledgement number. The acknowledgement number will be sent to you once you enter OTP (one-time password). So, if you can’t complete the process in one sitting, you can save the form and finish registration later.

Must Read: Should you invest in NPS for additional Rs 50,000 tax benefit?

What are the charges if I invest online in NPS?

Let’s assume you are making a contribution of Rs 50,000 in Tier-I account. You will have to pay:

  1. One-time Initial Subscriber registration charge of Rs 125. This charge is not applicable if you are opening account through e-NPS using Aadhaar. This charge will be applicable if you use a combination of PAN Card and Bank Account or if you are opening account through ICICIDirect.
  2. Contribution charge of Rs 125 (0.25% of Rs 50,000). This charge is also not applicable in case of eNPS (Aadhaar or PAN and bank account combination).

So, essentially, none of the above two charges are applicable if you are opening account through eNPS using Aadhaar card.

Do note I am talking only about the upfront charges. Do go through detailed charge structure on NPS website.

In case of eNPS, there will be payment gateway charges. This will be for each contribution you make through eNPS portal.

  1. Net Banking: Rs 0.6
  2. Debit card: 0.8% of the transaction amount
  3. Credit card: 0.9% of the transaction amount

Service tax shall be levied on the above charges.

Try making payment through Net Banking otherwise eNPS portal is quite expensive. An additional point to note is that a few banks were missing from the list of banks for Net Banking. ICICI Bank and HDFC Bank are notable omissions. Respective banks can levy additional convenience fee.

If you have Aadhaar card and can pay through Net Banking, you can open NPS account for a paltry 60 paise (plus service tax). If you had opened NPS account through any Point of Presence, you would have paid Rs 286.5 (Rs 250 + Service Tax).

A few Snapshots (NPS Account with Aadhaar Card)

How to open NPS account online with Aadhaar card registration

 How to open NPS account online using Aadhaar card bank account

How to open NPS account online with Aadhaar card Actiive Auto

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Deepesh Raghaw

Deepesh is a SEBI Registered Investment Adviser and an alumnus of IIM Lucknow. Deepesh provides customized Financial Planning and Investment solutions to his clients. Deepesh is passionate about personal finance and contributes regularly to leading Business Newspapers. Deepesh appears regularly on personal finance shows on Business Television.

55 Responses to How to open NPS account online using Aadhaar Card?

  1. John says:

    Well explained. Was useful in my attempt at registering online.
    Found the website very slow and often times had to re-login (so keep your acknowledgment # handy). Registered with Aadhar, so only had to upload my signature – it need to be less than 12kb (good luck with re-sizing).
    The payment part was smooth, fast (had heard that has been a problem for some), used direct banking – SBI, and cost 69 paise. It was not possible to either print or save the Payment Receipt or download the Registration Form from the payment confirmation page. Not to panic, all one would need to do is re-login to access the Receipt and Registration Form.

    • Deepesh Raghaw says:

      Wow!!! That’s great.
      Am really glad you could benefit from this post.
      Thanks John!!! You just made this post richer.
      Yes, I have heard and read about payment issues,especially if you are making payment using credit or debit card.
      Fortunately, you had SBI account. Everything went well and was low cost too.

  2. Shekhar says:

    I don’t have an SBI account but my dad has. Can I use his account to make payment for my NPS? I will transfer the contribution to his account as soon as I make the payment.

    • Deepesh Raghaw says:

      I think you can. I don’t see any issues from taxation standpoint.
      From the operations perspective, I can’t comment.

      • vinu says:

        I dont agree on contributing the amount from third person (including family members) bank account for tax saving purpose.

        • Deepesh Raghaw says:

          Vinu,
          Thanks for your input. It is a grey area for me.
          You might very well be correct.
          Better that contribution is made from own account.

  3. John says:

    There were options for many other banks. Any of those banks should work.

  4. Sunil says:

    Does eNPS provide online transaction history, balance/nav/profit loss details etc?

    • Deepesh Raghaw says:

      The question is platform specific. So, can’t comment.
      It should provide. If it doesn’t provide already, you can expect the platform to provide the same (transaction history, NAV, balance) in the coming years.
      I am not sure if they do or will provide profit/loss details.

    • John says:

      eNPS seems to be purely a registration/contribution website.
      One needs to log on to CRA-NSDL to view transaction details. To log on to CRA-NSDL, you need a user ID (which is your PRAN) and an I-PIN (which is couriered to you after registration and contribution at eNPS, took me 11 days to receive).

  5. Chandan says:

    Thanks Deepesh for your insightful post.
    BTW, you had responded to my earlier query that it only takes 30 minutes to open the NPS account through eNPS and aadhar.
    I have few questions on this.
    1. can the contribution (my case its 50k) also be made using this way?
    2. if my netbanking account is lined with UID/adhar, will that be a problem? is it mandatory if i have to subscribe to NPS online through adhar?

    Thanks in advance,
    Chandan

    • Chandan says:

      i just successfully opened the NPS account with both tier 1 and 2 options.
      i had made an initial contribution of 1k each to above 2 accounts.
      Now i want to make a contribution of 49k for tier 1 for tax benefits.
      if i select contribution section and enter my PRAN and DOB, its showing invalid entries. i dont if there is a lead time in getting my new PRAN authenticated in their system or will it happen only after i submit the hardcopy of the registered form?.

      • John says:

        Enter your acknowledgement # and DOB to get back on eNPS.

        • Anonymous says:

          Hello John,
          Thanks for your reply. but, what to do with that?
          i have already got my PRAN generated.
          i went in and checked my credentials again.. everything is fine.
          i also got a sms indicating successful generation of my PRAN .. but no email intimation yet.

          • John says:

            To contribute the 49K you mentioned.

          • John says:

            You are right – one need to enter PRAN and DOB on eNPS to contribute. Contribution through the “Registration” side of eNPS seem to allow only for the one initial contribution.
            You could try after you get their email contribution.

          • Deepesh Raghaw says:

            Thanks John for answering all the queries from Chandan.
            My question: If Chandan has PRAN and DOB, he should be able to log in and be able to make additional contributions.
            1. Quite possible there is a lead time after generation of PRAN before he can make additional contribution?
            2. Or he needs any further information (like some PIN) to contribute
            3. Or he needs to submit hard copy before he makes any further contribution.
            Ideally, e-mail intimation should not be important.
            What do you say?

          • John says:

            If Chandan has PRAN and DOB, he should be able to log in and be able to make additional contributions.
            —YES, an OTP will be generated on one’s cellphone/email address, before the contribution. (OTP was not required for the initial registration)
            1. Quite possible there is a lead time after generation of PRAN before he can make additional contribution?
            — Very possible.
            2. Or he needs any further information (like some PIN) to contribute
            —NO. PIN is required only to access cra-nsdl.com
            3. Or he needs to submit hard copy before he makes any further contribution.
            — Probably not.
            Ideally, e-mail intimation should not be important.
            — YES. But from my little experience with eNPS and CRA-NSDL, they are no ideal websites :)

          • Deepesh Raghaw says:

            Yes, I think Chandan is facing issues because these sites have not fully evolved till now. :)

  6. Chandan says:

    Hi John,
    Thanks for identifying my issue.
    I am still waiting for their email confirmation.
    I hope i can contribute to 49k before 31st March. If not, I may not try and put more money into this NPS as there are quite a lot of pros and cons.. !!
    another take on NPS is here: http://freefincal.com/do-not-invest-rs-50000-in-nps-for-saving-tax/

    • Deepesh Raghaw says:

      Chandan,
      You must assess suitability of NPS to your overall financial goals and only then worry about how to invest.
      Unfortunately, most of us are more worried about tax benefits than financial goals.
      NPS is not bad for everyone. And it is not good for everyone either.
      So, you need to understand NPS features and see if such a product is a fit in your portfolio.
      Disclosure: I have written many posts on NPS but I am not a NPS subscriber myself.

    • Chandan says:

      Hello Deepesh and John,

      NPS contribution (voluntary or tier-2) option can be logged in successfully after 3 hours of getting the PRAN account.
      i did it but couldn’t make any payment as the payment gateway for both credit and debit card were unsuccessful.
      net-banking is not possible with private banks like icici, hdfc or scb.

      • Deepesh Raghaw says:

        Hi Chandan,
        Contribution to Tier-II NPS account is not eligible for tax benefits.
        For tax benefits, you must contribute to Tier-I NPS account.
        If you know someone with bank account from public sector banks, you can make contribution through their bank accounts and transfer money to their bank accounts.
        If you want to contribute to NPS (and cannot do online), you can visit the nearest NPS point of service and make the contribution.
        I am not sure if this will work.

        • Chandan says:

          Hello Deepesh,
          In contribution section of eNPS website,
          there are 2 options available to the subscriber 1) voluntary which is tier-1 and 2) tier-2.
          I’d meant tier 1 account.
          I will check with a public sector bank if i can make the payment through them if i have the PRAN.
          Thanks once again.
          Chandan

          • Deepesh Raghaw says:

            Ok. Great!!!
            Do let me know how it goes.

          • Chandan says:

            Hello Deepesh,
            Today i successfully paid the remaining 49k using debit card for the NPS tier 1 contribution. it worked first time ! after having failed attempts for last few days.
            but yes, i had to pay close to 450 Rs towards transaction and service charges. had i used netbanking (i dont have any public bank savings account unfortunately), i would have saved this amount i guess.
            Thanks again for this informative article.

            Cheers
            Chandan

          • Deepesh Raghaw says:

            That’s great Chandan.
            Yes, you would have save this amount if you had done the transaction through net banking.

  7. Ravi says:

    Sir, very good detailed post. If i plan to open NPS through icicidirect, is there any additional charges i will have to incur , other than the one time expenses you had mentioned (Rs 286.5 as mentioned in your post). Will these POPs levy any other expense whenever i make any additional contribution ?

    since the e-nps still will take time to evolve, i was thinking of using icicidirect’s nps if it can provide me a better platform and experience. Pls suggest.

    • Deepesh Raghaw says:

      Thanks Ravi. Am glad you found the post useful
      With ICICIDirect, you will to have pay charges for subsequent contributions too (0.25% of the contribution amount subject to a maximum of Rs 25,000). Go through the following link
      https://npscra.nsdl.co.in/all-faq-charges.php
      You can find charges for subsequent transactions.Therefore, on an annual contribution of Rs 50,000, you will up paying Rs 125 plus service tax. To be honest, it is not that big an amount. You can go ahead with ICICIDirect.
      Alternatively, you can open account through ICICIDirect (if you are finding eNPS cumbersome). Subsequent contributions can be made through eNPS portal.

      • Ravi says:

        Hi Deepesh,

        Thanks for your comments – i finally opened via the e-nps portal itself today. Was hassle free so far for me. Will now send the print out of the application form to CRA.

        Thank you

  8. Dilli Ganesh says:

    I am facing while image upload time getting “uploader error” ,pls tell what can i do

    • Deepesh Raghaw says:

      There are restrictions on image size. Try uploading a pic that meets specifications.
      If that doesn’t work either, wait for a day or two and then try again.
      There might be some issue at their end.

  9. Yogesh says:

    I opened the account through Point of Presence (ICICI). Is it possible now to link my aadhaar card to NPS account to avoid Contribution charge to NPS account through eNPS?

    • Deepesh Raghaw says:

      You do need to link Aadhaar card. You can pay through eNPS portal. Contribution charge of 0.25% is not applicable is you pay through eNPS portal.
      However, service charge of 0.05% shall be charged on each contribution. This will go to the PoP through which you opened the account. This charge is not applicable to those who opened the account through Aadhaar card.
      Do note if you use eNPS portal, there will be payment gateway charges.

  10. Yogesh says:

    Is there any other mode of contribution cheaper that eNPS?

  11. Prashant says:

    In the enps website, there are 2 options to register viz. by pan card or by aadhar card. My question is that if I register using Aadhar Card- Will there be a maximum limit of investment that I can do in ayear for Tier1/Tier 2 account. As per my understanding, aadhar based kyc limits the maximum amount of investment to 50K in a year.

    I have a account with Dena bank (in Delhi) which is listed in the empanneled list of banks, but bank officials told that the branch is not empanneled and only in a few states such as Maharashatra – can a nps account be opened at DEna bank branches.

    What are my options?

    Please help me in clearing my confusion.

    • Deepesh Raghaw says:

      Dear Prashant,
      There is no such limit on maximum investment in Tier I or Tier II if you open account using Aadhaar card.
      However, in my opinion, it makes no sense for you to invest more than Rs 50,000 per year in NPS.

      It is possible that not all Dena Bank branches have facility to open NPS account.
      You will have to go to a branch that permits you to open.
      Or you can go to branch of some other bank.

  12. Mehma says:

    Hi ,

    I am getting an error – ” Error generating OTP ” while I input my Aadhaar no.
    I have verified that my phone/email both are verified & linked to my Aadhaar.
    Is anyobody else facing this issue or can suggest regarding this?

  13. Umashankar says:

    Registration against this Acknowledgement Id is pending for confirmation from payment Gateway.Please try again after sometime.

    Before payment I got error and message as above. Not sure what is the reason, have registered complaint at CRA website. Even tried to reach call center no body picks the phone (very sad). Do you have any idea how long it takes OR what is the problem.

    Have tried to register once again,but not possible. Looks like many has the same problem, but don’t know what is the solution.

    Could you please guide me?

    Thanks,
    Umashankar

    • Deepesh Raghaw says:

      Dear Umashankar,
      Looks like a technical issue.
      Customer service is unlikely to NSDL forte.
      Try dropping an e-mail to enps(AT)nsdl.co.in.

  14. Roma says:

    I would like to invest 50k in NPS for tax exemption..I do not have a PRAN. I want to know if I should open tier1 or tier 2 account.kindly guide me with the features.

  15. Ajay says:

    I understand that the tax benefits are eligible for Tier-1 contributions. Is there a harm if I create account on eNPS site using Tier-1 & Tier-2 option instead of Tier-1 only option ?

    • Ajay says:

      I would also like to know if I could open Tier-2 account later if I register for Tier-1 only now ?

      • Deepesh Raghaw says:

        I am not sure about this. I do not think there is such restriction in NPS regulations that you cannot open NPS Tier II account later.

    • Deepesh Raghaw says:

      There is no harm. There may be a minor operational cost for maintaining NPS Tier II account.
      Personally, I do not see much benefit in investing in Tier-II NPS.

  16. Neeraj says:

    I tried the registration option and now I am stuck. I paid the initial amount of 500 twice on American express credit card and was charged both times but the nps website said that transaction failed. Now I don’t have the PRAN account number also and not sure what to do.

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