🗓️Last Updated: June 2026

National Pension System (NPS): How to Open Account, Contribute & Withdraw

NPS is a voluntary, market-linked pension scheme regulated by PFRDA and open to all Indian citizens aged 18–70. It offers two account tiers — Tier 1 (pension) and Tier 2 (savings) — plus tax benefits of up to ₹2 lakh per year. Learn how to open an account online, choose your fund manager, make contributions, and withdraw at retirement.

🔗NPS Trust / eNPS — npscra.nsdl.co.in — Official Portal →

📋 Overview

The National Pension System (NPS) is a government-backed, voluntary retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Launched in 2004 for central government employees and opened to all citizens in 2009, NPS allows individuals to build a retirement corpus through regular contributions invested in equity, government bonds, and corporate debt. At retirement (age 60), at least 40% of the corpus must be used to purchase an annuity (monthly pension), and up to 60% can be withdrawn as a tax-free lump sum. NPS offers two tiers: Tier 1 is the primary pension account with lock-in until retirement and tax benefits, while Tier 2 is a voluntary savings account with no lock-in (not available for NPS Lite / Swavalamban subscribers). Fund managers include SBI Pension Funds, LIC Pension Fund, UTI Retirement, HDFC Pension, ICICI Prudential, Kotak Pension, and Aditya Birla Sun Life Pension. The eNPS portal at npscra.nsdl.co.in allows fully online account opening and contributions.

✅ Eligibility

  • ✓Any Indian citizen (resident or non-resident) aged 18 to 70 years.
  • ✓NRIs can open NPS accounts but contributions must be in Indian Rupees via NRE/NRO accounts.
  • ✓Central and state government employees are mandatorily enrolled from their date of joining (for post-2004 recruits).
  • ✓Employees of corporates that have adopted NPS can enroll through the Corporate NPS model.
  • ✓Self-employed individuals, freelancers, and business owners can open All Citizen NPS accounts.
  • ✓Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs) are not eligible.
  • ✓Minor accounts (NPS Vatsalya) — parents can open accounts for children below 18, convertible to regular NPS on majority.

📁 Documents Required

▸Aadhaar card (mandatory for eKYC-based online account opening).
▸PAN card (mandatory for tax benefits and contributions above ₹50,000/year).
▸Bank account details: account number, IFSC code, and cancelled cheque or bank statement.
▸Passport-size photograph (for offline account opening at Point of Presence — PoP).
▸For NRI applicants: passport, overseas address proof, and Foreign Account Tax Compliance Act (FATCA) declaration.
▸Nomination details: nominee's name, relationship, date of birth, and Aadhaar number.

💰Fees & Processing Time

Fee
Account opening charge: ₹125 (offline at PoP) or ₹15–200 (online eNPS). Annual maintenance charge: ₹190/year (Tier 1). Contribution processing charge: 0.10% per transaction (min ₹20, max ₹10,000). Fund management charge (FMC): 0.09% per annum of assets under management — among the lowest in the mutual fund industry. Annuity purchase: no charge from PFRDA; annuity providers may levy charges separately. No exit load on Tier 2 withdrawals.
Processing Time
Online account opening (eNPS with Aadhaar eKYC): PRAN (Permanent Retirement Account Number) generated within 24–48 hours. Offline account opening at PoP: 7–15 working days. Contribution processing: credited to the account within T+2 working days. Withdrawal on retirement: processed within 15–30 working days after submission of all documents. Partial withdrawal requests: processed within 30 days.

🖥️ How to Apply Online

  1. 1Visit enps.nsdl.com or npscra.nsdl.co.in and click 'National Pension System' → 'Open your NPS Account'.
  2. 2Choose account type: 'All Citizen of India' for self-employed / non-government employees, or 'Corporate' if your employer has adopted NPS.
  3. 3Select registration type: 'With Aadhaar' (instant eKYC) or 'With PAN' (requires document upload and PoP verification).
  4. 4For Aadhaar-based eKYC: enter your Aadhaar number, complete OTP verification on your Aadhaar-linked mobile — basic details auto-populate.
  5. 5Choose your Pension Fund Manager (PFM) from: SBI, LIC, UTI, HDFC, ICICI Prudential, Kotak, or Aditya Birla. You can switch once per year.
  6. 6Select investment option: Auto Choice (lifecycle fund — reduces equity allocation as you age) or Active Choice (you set equity up to 75% before 50, up to 50% after).
  7. 7Fill in personal details, nomination, and bank account information.
  8. 8Open Tier 1 (minimum ₹500 contribution). Optionally open Tier 2 (minimum ₹1,000 initial contribution).
  9. 9Pay via net banking or UPI — minimum contribution ₹500 for Tier 1.
  10. 10Your PRAN (Permanent Retirement Account Number) is generated and sent to your email and mobile.

🏢 How to Apply Offline

  1. 1Visit a Point of Presence (PoP) — these include SBI, HDFC Bank, ICICI Bank, Axis Bank, India Post, and other designated branches.
  2. 2Collect the Subscriber Registration Form (CSRF — Common Subscriber Registration Form).
  3. 3Fill in the form with personal details, choice of pension fund manager, investment option, and nomination.
  4. 4Attach self-attested copies of Aadhaar, PAN, and one passport-size photograph.
  5. 5Submit the initial contribution amount (minimum ₹500 for Tier 1) via cheque or demand draft in favour of the PoP.
  6. 6The PoP processes the application and sends it to the Central Recordkeeping Agency (CRA — NSDL or Karvy).
  7. 7Your PRAN is generated within 7–15 working days and mailed to your registered address.
  8. 8Use the PRAN to log in to npscra.nsdl.co.in for future contributions and account management.

⚠️Common Problems & Solutions

✗PRAN activation failed — OTP not received on Aadhaar-linked mobile
→Ensure your Aadhaar is linked to an active mobile number. Update your mobile number at the nearest Aadhaar Enrolment Centre before attempting eNPS registration. Alternatively, open account offline at a PoP using PAN-based KYC.
✗Contribution not reflecting in NPS account
→Contributions via eNPS take T+2 working days. If not reflected after 3 working days, check your bank statement for debit confirmation, then raise a grievance at cra-nsdl.com with your PRAN and transaction reference number.
✗Cannot claim 80CCD(1B) additional ₹50,000 deduction
→The additional ₹50,000 deduction under 80CCD(1B) is available only for Tier 1 NPS contributions. Ensure you have a Tier 1 account (not only Tier 2). Obtain your transaction statement from the CRA portal and submit it to your employer for Form 16, or claim it directly in your ITR.
✗Forgot PRAN or cannot log in to NPS account
→Visit npscra.nsdl.co.in → 'Know Your PRAN'. Enter your PAN or Aadhaar number to retrieve the PRAN. For password reset, use the 'Forgot Password' option with OTP verification on your registered mobile.
✗Want to exit NPS before age 60
→Premature exit from NPS is allowed after 3 years for specific reasons (critical illness, disability). On premature exit, at least 80% of the corpus must be used to buy an annuity; only 20% can be withdrawn as lump sum. Contact your PoP or CRA for premature withdrawal forms.

❓ Frequently Asked Questions

Q.What is the difference between NPS Tier 1 and Tier 2 accounts?

Tier 1 is the primary pension account — it has a lock-in until age 60, and contributions get tax deductions under Section 80CCD(1) (part of 80C limit of ₹1.5 lakh) and additional ₹50,000 under 80CCD(1B). Tier 2 is a voluntary savings account with no lock-in — you can withdraw any time — but contributions do NOT get any tax deduction (except for central government employees under Section 80C).

Q.How much tax benefit does NPS give?

NPS Tier 1 contributions qualify for: (1) Section 80CCD(1) — up to 10% of salary (for employed) or 20% of gross income (for self-employed), subject to the overall ₹1.5 lakh 80C limit. (2) Section 80CCD(1B) — additional ₹50,000 per year, over and above the ₹1.5 lakh 80C limit. (3) Section 80CCD(2) — employer's NPS contribution up to 10% of salary is deductible (no upper limit). Total effective deduction can reach ₹2 lakh+ per year.

Q.What happens to my NPS corpus at age 60?

At age 60, you must use at least 40% of the accumulated corpus to purchase a life annuity from a PFRDA-empanelled Annuity Service Provider (ASP) like LIC, SBI Life, HDFC Life, etc. The remaining up to 60% can be withdrawn as a tax-free lump sum. The annuity provides monthly pension for life (and to your spouse in joint life annuity options). You can also defer withdrawal until age 75.

Q.Can I withdraw from NPS before retirement?

Partial withdrawal from Tier 1 is allowed after 3 years of membership, up to 25% of your own contributions (not the full corpus), and only for specific reasons: higher education or marriage of children, purchase or construction of residential house, treatment of specified critical illnesses, disability of 80%+, or starting a business. You can make partial withdrawals up to 3 times in the entire tenure.

Q.What is the minimum NPS contribution per year?

For Tier 1: minimum ₹500 per contribution, minimum ₹1,000 per financial year, and minimum 1 contribution per year. If you miss the annual minimum, the account becomes 'frozen'. To unfreeze, pay the minimum contribution plus ₹100 penalty per year of default. Tier 2 minimum is ₹250 per contribution with no annual minimum requirement.

Q.Can I change my NPS fund manager?

Yes. You can switch your Pension Fund Manager (PFM) once per financial year without any charges. Log in to the CRA portal (npscra.nsdl.co.in or cra-nsdl.com), go to 'Transaction' → 'Switch' → 'Change Pension Fund Manager'. The switch is processed within 2–3 working days.

Q.Is NPS return guaranteed?

No. NPS is a market-linked scheme. Returns depend on the performance of the fund manager and the asset class chosen (equity / corporate bonds / government securities / alternative assets). Historically, NPS equity funds have delivered 10–14% annualised returns over 10+ years, but past performance does not guarantee future returns. The 'Auto Choice' option automatically reduces equity exposure as you near retirement.

Q.What is NPS Vatsalya?

NPS Vatsalya (launched 2024) allows parents or guardians to open an NPS account for minors (below 18 years). The account is in the child's name with a parent/guardian as the subscriber. On the child turning 18, the account converts to a regular NPS account. The child can then continue contributions toward retirement. Minimum contribution: ₹1,000/year.

📞Helpline & Support

  • ▸NPS Helpline (NSDL CRA): 1800-222-080 (toll-free, Mon–Sat 9 AM–6 PM)
  • ▸eNPS Portal: enps.nsdl.com — online account opening, contributions, withdrawal
  • ▸CRA Grievance Portal: cra-nsdl.com — raise and track complaints
  • ▸PFRDA Helpline: 1800-110-708 (toll-free) or visit pfrda.org.in
  • ▸Email Grievance: npscra@nsdl.co.in
  • ▸PoP Locator: Find nearest NPS Point of Presence at npscra.nsdl.co.in → 'PoP Locator'
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Disclaimer: NagrikIQ is an informational platform and is not affiliated with any government department. Information provided is for guidance only. Always verify details on the official government portal before taking action.