How to Open an NPS Tier-II Account?

The National Pension Scheme is a government-sponsored pension scheme in India. It is a voluntary, post-retirement investment fund initiated by the Central Government. This scheme offers social security in the form of pension to employees of all sectors, except to those from the armed forces. Subscribers make voluntary contributions into their Pension Account to accumulate a post-retirement corpus, for which they receive a tax deduction under the Income Tax Act.

NPS provides access to two types of personal Accounts -

• Tier-I Account: default account meant for post-retirement savings
• Tier-II Account: additional account meant for independent non-retirement related savings

About the NPS Tier-II AccountThe NPS Tier-II Account is an optional facility provided to NPS Tier-I Account-holders. Therefore, it is not compulsory to open a Tier-II Account to invest in NPS and can be opened at the subscriber’s discretion. The NPS Tier-II Account has numerous benefits like quick transfer of money from to the Tier-I Account, no annual maintenance charges, unrestricted withdrawal of funds, etc.

In order to open a Tier-II Account, it is compulsory to have the following :

• NPS Tier-I Account
• Permanent Retirement Account Number (PRAN)

A subscriber to the National Pension Scheme who has a Tier-I Account may open a Tier-II Account through two modes - Online and Offline mode. The account-opening procedures under both these methods are explained below:

1. Login to the eNPS online portal by clicking here .
2. Click on the National Pension System field and select Tier-II Activation.
3. Fill in details regarding Date of Birth, PRAN and PAN details to activate the NPS Tier-II Account.

• Online Mode
• Offline Mode Subscribers can procure the application from their nearest Point of Presence-Service Provider (POP-SP) or download the form by clicking here . The application form should be duly filled and signed by the subscriber and submitted to the nearest POP-SP along with a copy of the subscriber’s PRAN Card and a cancelled cheque.

Subscribers must also specify their bank details, which can be the same as the information submitted for NPS Tier-I Account or a new bank account may be linked to the Tier-II Account. Scheme preference and nomination particulars must also be filled.The NPS Tier-II Account is thus a flexible investment structure offered by the scheme that can be opened easily at the subscriber’s convenience.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.