How may a closed NPS account be reopened?
You should read this if you also have an NPS account, or National Pension System. A government retirement savings programme is the NPS. To benefit from it, you must reactivate your NPS account if it has been inactive. Tell us how to reactivate your dormant NPS account.
required paperwork
You need a few key documents in order to activate an inactive NPS account.
- PRAN (Permanent Retirement Account Number): As your NPS account is identified by this special 12-digit number, you must have one.
- KYC (Know Your Customer) Document: For this, a passport-size photo, an identity card, and address documentation are required.
- Reactivation form: You’ll need to have the subscriber re-activation form thoroughly filled out for this. (This form may be downloaded from the NPS website.)
Contact the Point of Presence Service Provider (PoP-SP) with whom your account is registered to learn how to activate your NPS account.
– Give them the information they need to reactivate the account, including your PRAN data.
– Correctly complete the subscription reactivation form.
– Give the relevant facts, such as your PRAN, personal information, and the justification for the reactivation, after that.
– Fill out the form completely, attach the necessary KYC documents, and include passport-size photos.
– After that, go to the designated POP-SP office and turn in the completed form, together with the necessary KYC documents.
– Here, a POP-SP representative will check your application and explain the next steps.
– Reactivating the NPS account requires a small cost, which must be deposited together with a receipt or other acknowledgment of the payment.
– Your POP-SP will process the request following receipt of the reactivation form and payment of the required cost.
– Once your re-activation is finished, the POP-SP will send you a confirmation message or email.
The NPS, or National Pension System, is a government-sponsored pension scheme in India. It was launched in 2004 with the aim of providing retirement income to individuals in the country. The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and offers both government and private sector employees a platform to invest in their retirement savings.
The NPS operates on a defined contribution basis, where individuals contribute a portion of their salary towards their pension account. The contributions are invested in various asset classes such as equities, corporate bonds, government securities, and alternative investments, depending on the individual’s risk appetite and investment preference. The returns on these investments determine the final pension amount that the individual receives upon retirement.
One of the key features of the NPS is the flexibility it offers to subscribers. Individuals can choose from different pension fund managers and investment options based on their financial goals and risk tolerance. They can also switch between different fund managers and investment options over time to align with their changing needs.
Another important aspect of the NPS is the tax benefits it provides. Contributions made towards the NPS are eligible for tax deductions under Section 80CCD(1) of the Income Tax Act, up to a specified limit. Additionally, an exclusive tax deduction of up to Rs. 50,000 is available under Section 80CCD(1B), known as the NPS Tier-I tax benefit. This makes the NPS a tax-efficient investment avenue for individuals looking to save for their retirement.
Upon reaching the age of 60, subscribers of the NPS can withdraw a portion of their accumulated corpus as a lump sum and use the remaining amount to purchase an annuity from a life insurance company. The annuity provides a regular pension income to the individual for the rest of their life.
In recent years, the government has introduced several policy changes to make the NPS more attractive and accessible. For instance, it has increased the equity exposure limit for NPS investments, allowing subscribers to potentially earn higher returns. The NPS has also been made available to all Indian citizens, including self-employed individuals, on a voluntary basis.
Overall, the NPS offers individuals a structured and regulated platform to build a retirement corpus. With its flexible investment options, tax benefits, and potential for long-term wealth creation, it has become an important tool for individuals to secure their financial future.
