NPS Account in Post-Office
The post office of India offers the facility of opening accounts under the National Pension System (NPS).
All head post offices across the country are identified as Point of Presence-branches (POP-SP) for operating NPS.
Before we discuss the “How to Open NPS Account in Post-Office?“, let us briefly touch upon the features of NPS.
The national pension scheme launched by the Government of India and regulated by PFRDA (i.e., Pension Fund Regulatory and Development Authority), is a voluntary, defined-contribution retirement savings scheme.
NSDL e-governance infrast. Ltd. is a CRA (i.e., a central record-keeping agency) for recording the details of a subscriber.
Generally, It is for anyone who wants to plan for their retirement with a low-risk appetite.
A regular pension in the retirement years will be a boon, especially for those individuals who retire from private-sector jobs.
This scheme is a market-linked product that allows you to create your retirement corpus and flexibly choose from various asset classes and invest in annuity plans.
There are two types of accounts in NPS – Tier I and Tier II.
While Tier I a/c is the primary or main NPS a/c aimed at creating a retirement corpus, Tier II a/c is more like a voluntary savings a/c which offers more flexibility in terms of deposits and withdrawals.
NPS offers two modes of investing – active and auto mode.
In the auto, the proportion of your investment is pre-decided based on the subscriber’s age. If you wish to modify this ratio, you need to switch to the active mode first. Though, this preference can also be modified if you wish to do so.
Here are key things to know about the NPS account.
All citizens with aged between 18 and 64 years of age can open an NPS account with post-office. However, investors should not qualify for NPS under any other sector.
Post Office Schemes for Sr. Citizens
Post Office Savings Account
PO Fixed Deposit | Interest Rates
Senior Citizen Savings Scheme
National Savings Certificates India (NSC)
Kisan Vikas Patra: Double the Money
Pradhanmantri Sukanya Samriddhi Yojana (PM-SSY) Account
Atal Pension Yojana
Loan Against Public Provident Fund
Doorstep Banking Services for Senior-Citizens
|Option of selection of the Account
|Conditional & Restricted Withdrawal
|Quick and Efficient Withdrawal
|Minimum Contribution at the time of A/c opening
|The minimum amount of subsequent contribution
|Minimum Contribution Required per year
|Minimum no. of contribution per year
|Frequency of contribution permitted
|Tax Benefits for Corporates and Corporate employees
|*For Employer Prospect: Contributions made by the employer (i.e. up to 10% of Basic + DA) is allowed as a business expense under Section 36(1) of IT Act 1961.
*For Employee Prospect: Employees’ own contribution is eligible for tax deduction presently, u/s 80CCD of IT Act up to 10% of salary (Basic + DA). This is within the overall ceiling of ` 1.50 Lakhs u/s 80 CCE of the IT Act.
Subscriber is allowed tax deduction in addition to the deduction allowed u/s 80CCD(1) for additional contribution in his NPS account subject to a maximum investment of ` INR 50,000/- u/s 80CCD 1(B).
*For Self- Employed/Businessman:
20% of the Gross Income is eligible for tax deduction u/s 80 CCD (1) of IT Act.
KYC Documents for Opening NPS Account in Post-Office
- Date of Birth proof – Birth Certificate, School certificate, Aadhar, Election ID, Driving License, Passport, PAN card etc.
- ID Proof – Aadhar, Election ID, Driving license, PAN card, Bank pass book, Ration card etc. with photograph of the subscriber.
- Address Proof – Any of the documents mentioned at B above which provides the address of the subscriber matching with the address provided in the application.
- Bank account Proof – A cancelled cheque or attested copy of the pass book or banker’s certificate in original containing name of the subscriber, bank account number, bank’s name, branch name, address, PIN code, IFSC and MICR codes.
How to Open NPS Account in Post-Office?
Time needed: 5 minutes
For investing in the NPS in the post office, the steps are as follows
- Download the Form
The registration form can be downloaded using the below link.
Post Office NPS Form
- Registration Form
1# Recent colour photograph of 3.5 X 2.5 cm size (Passport size) is to be affixed at the column provided. Signature or any other marks should not be made on the photograph.
2# Appropriate column should be ticked to earmark the sector to which the subscriber belongs.
- Personal Details
3# Full name of the subscriber is to be given as first name. Initials may be given as middle name / last name, as the case may be.
4# Date of birth should be matching with the entry in the service book.
- Proof of Address & Identity
5# Address provided in the application form should match with the address provided in the address proof.
- Contact Details
6# Providing Mobile no./e-mail ID is desirable, since monthly credit updation details and periodical informative alerts are provided vide SMS/e-mail etc.
- Subscriber’s Bank Details
7# Subscriber’s bank details to be provided against item no.7. Bank account with IFSC/MICR details is desirable, since all the future transactions are to be made only electronically.
- Nomination Details
If there is only one nominee, item no.8 may be filled up.
- Fund Manager and Modes
As an NPS subscriber, you will need to make two selections
1. Pension fund manager
2. Investment option
- Signature or Thump Impression
The signature or thumb impression of the subscriber should be affixed well within the column provided at the bottom of the page.
- Submission the Form
You can go to your nearest head post office which serves as the POP-SP. and submit the PRAN application along with the KYC documents.
Post-Office POP-SP List
To get the list of the POP-SPs you can visit the below link and select your State and Location.
You would, then, get a complete list of the POP-SPs which accept offline NPS registration forms.
How Can I Track my Post-Office NPS Application Status?
At the time of submission of the NPS application form, POP-SP shall give you a receipt number of application.
You can track the status of your application by entering the receipt number in the following CRA link:
Is There Any Charges for Post-Office NPS?
Here are the different transaction charges levied by the post office for opening NPS accounts
|INR 200 + GST
|0.25% of the contribution amount subject to a minimum of INR 20 + GST and a maximum of INR 25,000 + GST
|All Service Charges
|INR 20 + GST
|Cash, cheque, DD subject to realization