One can open the account by completing the documentation and formalities with the Points of Presence (PoPs). A PoP is the first point of interaction between the subscriber and the NPS.
Conditions: An Indian citizen between 18 and 55 years of age can join the NPS. It offers two types of accounts—Tier I, where the contribution cannot be withdrawn, and Tier II, where it can be withdrawn anytime. To have a Tier II account, one must have a Tier I account.
Form: An individual who wants to open a Permanent Retirement Account (PRA), be it Tier I and/or Tier II, has to submit the form with other supporting KYC documents to the POP service provider. The form can be downloaded from http://tinyurl.com/ntzxa2u.
Contribution: The first contribution to the account has to be made at the time of registration. The minimum amount is Rs 500 and the minimum contribution in a year is Rs 6,000. This should be done for at least four years, while there is no maximum limit. The contributions can be made by cash, local cheque, demand draft or through an electronic transfer.
PRAN: After submitting the form and documents, NSDL, the central record-keeping agency (CRA) for NPS, allocates a Permanent Retirement Account Number (PRAN) to the individual. This card is despatched within 20 days of the day of receipt of the form.
Points to note:
> A subscriber can go to https://cra-nsdl. com/CRA/ and check the status of PRAN kit using the 17-digit receipt number provided by the POP service provider.
> If the minimum annual contribution of Rs 6,000 is not made to the account, the account becomes dormant.
The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre and Arti Bhargava.
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