How to open NPS account — complete 2026 guide

NPS now has about 8.4 crore subscribers (PFRDA Annual Report 2024-25), of which about 1.7 crore are private-sector / All-Citizens-Model subscribers. The eNPS Aadhaar route handles 70%+ of new account openings. The vast majority go through smoothly — PRAN in minutes. The 1-2% that get stuck usually need either a KYC mismatch fix, a PAN-Aadhaar issue resolved, or — for stubborn cases — an RTI to PFRDA.

The National Pension System (NPS) is a defined-contribution retirement-savings system regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Open to:

• All Indian citizens aged 18-70 (the upper limit was raised from 65 in 2021).
• NRIs (Non-Resident Indians) on similar terms; OCIs are also eligible.
• Government employees are auto-enrolled into NPS (mandatory since 1 January 2004 for central govt; states followed at different times).

Two account types:

• Tier I — the base / pension account. Mandatory if you want any tax benefit. Withdrawal is restricted (only on retirement, partial withdrawal allowed for specified life events). Annuitisation of at least 40% of the corpus is mandatory at exit. Eligible for §80CCD tax deduction.
• Tier II — a voluntary, flexible savings account. Fully liquid — withdraw any time. No tax benefit for non-government subscribers (government employees get a small lock-in benefit). You must have an active Tier I to open Tier II.

Tax benefits (anchor: Income Tax Act, 1961):

• §80CCD(1) — own contribution up to 10% of salary (basic + DA) for salaried, or 20% of gross income for self-employed; capped at ₹1.5 lakh within the §80C ceiling.
• §80CCD(1B) — additional ₹50,000 deduction for NPS Tier I contribution, outside the §80C limit. This is the headline benefit.
• §80CCD(2) — employer contribution to NPS, up to 10% of salary (14% for central government employees), fully exempt without any monetary cap. Available only under salary structure where employer contributes.
• Note: Under the new tax regime (default since FY 2023-24), only §80CCD(2) is allowed; §80CCD(1) and §80CCD(1B) are not available.

Statutory anchors:

• Pension Fund Regulatory and Development Authority Act, 2013 — parent statute creating PFRDA and the NPS framework.
• PFRDA NPS Regulations — operational rules for subscribers, PFMs, CRAs, POPs, custodians.
• Income Tax Act, 1961 — §80CCD(1) / (1B) / (2), §10(12A), §10(12B) for tax treatment.

• Age 18-70. Indian citizen / NRI / OCI.
• Aadhaar with mobile linked (mandatory for OTP).
• PAN (mandatory).
• Active bank account with net banking (for first contribution).
• Cancelled cheque / bank statement (for bank linking — auto-validated in some cases).
• Mobile phone for OTP, email for confirmations.

You can register at either CRA:

• NSDL (Protean): https://enps.nsdl.com
• KFin (Karvy): https://enps.kfintech.com

CRA = Central Recordkeeping Agency. It maintains your PRAN, contributions, statements. NSDL is the older / larger CRA; KFin is newer. Servicing is largely identical. You can switch later if needed.

• Individual Subscriber (most people).
• Corporate Subscriber (your employer enrolls you).
• Government (auto for central / state govt employees).

For All-Citizens-Model self-enrollment, choose Individual.

Three KYC routes:

• Aadhaar OTP — fastest, no document upload, instant PRAN.
• PAN-based KYC via bank — bank does the KYC; takes 2-3 days.
• Offline Aadhaar XML — for those without OTP-linked mobile.

Aadhaar OTP path: enter Aadhaar → OTP to mobile → KYC details (name, address, DOB, gender) auto-fetched from UIDAI → confirm.

• PAN + name as per PAN.
• Email + mobile (for transactional communication).
• Nominee — at least 1, up to 3 (with percentage allocation summing to 100%). For minor nominees, add a guardian.
• Employment status (salaried / self-employed / others).
• Annual income range (used for AML risk classification).

PFRDA-licensed PFMs as of 2026:

• SBI Pension Funds (largest AUM; conservative track record)
• HDFC Pension Management (newer, strong returns)
• ICICI Prudential Pension Funds
• UTI Retirement Solutions
• LIC Pension Fund
• Kotak Mahindra Pension Fund
• Aditya Birla Sun Life Pension Management
• Max Life Pension Fund
• Tata Pension Management
• Axis Pension Fund

You can change PFM once a year — so don't agonise over the first choice.

Two modes:

• Auto Choice (Lifecycle Fund): Asset allocation auto-adjusts based on age and chosen risk profile.
  • LC75 (Aggressive) — equity 75% till age 35, glide-down thereafter.
  • LC50 (Moderate) — equity 50% till age 35, glide-down.
  • LC25 (Conservative) — equity 25% till age 35, glide-down.
• Active Choice: You set the allocation across asset classes:
  • Equity (E) — max 75% till age 50, then glide-down.
  • Corporate bonds (C) — max 100%.
  • Government securities (G) — max 100%.
  • Alternative assets (A) — max 5%.

Most All-Citizens subscribers under 40 pick LC75 Auto for simplicity; older subscribers prefer LC50 or Active.

• Tier I minimum: ₹500 initial; ₹1,000 annual minimum to keep account active.
• Tier II minimum: ₹1,000 initial; no annual minimum.
• Pay via net banking / UPI / debit card. Charge: 0.20% of contribution (min ₹15, max ₹10,000) + GST under the Payment Gateway Charge.

• PRAN (12-digit Permanent Retirement Account Number) is shown on screen and emailed.
• e-PRAN card PDF available immediately for download.
• Physical PRAN card dispatched in 15-30 days to your registered address.
• CRA login credentials (User ID = PRAN; password = setup link in email).

• Login at https://cra-nsdl.com (NSDL) or https://kcra.kfintech.com (KFin).
• View statement, change PFM / investment choice, make contributions, register for SIP-style auto-debit.
• For tax proof, download the NPS Transaction Statement showing your contribution amounts — give to employer for §80CCD(1B) deduction.

+-----------------------------------+-------------------------------------+
| Account opening (eNPS Aadhaar)    | NIL fee from PFRDA. Bank may charge |
|                                   | nominal payment-gateway fee.        |
+-----------------------------------+-------------------------------------+
| Account opening (offline at PoP)  | One-time Rs 200-400 PoP charge per  |
|                                   | the PoP's tariff card.              |
+-----------------------------------+-------------------------------------+
| Tier I minimum initial            | Rs 500.                             |
| Tier I minimum annual             | Rs 1,000 (else account "frozen";    |
|                                   | reactivate with Rs 100 + arrears).  |
| Tier II minimum initial           | Rs 1,000. No annual minimum.        |
+-----------------------------------+-------------------------------------+
| Pension Fund Management charge    | 0.03% to 0.09% per annum on AUM     |
|                                   | (lowest in the industry).           |
+-----------------------------------+-------------------------------------+
| CRA recordkeeping charge          | Rs 19 per account opening + Rs 4    |
|                                   | per transaction (NSDL); similar at  |
|                                   | KFin.                               |
+-----------------------------------+-------------------------------------+
| Custodian charge                  | 0.0032% per annum.                  |
+-----------------------------------+-------------------------------------+
| Tax — Section 80CCD(1)            | Up to 10% of salary (basic+DA) or   |
|                                   | 20% of gross (self-emp); within     |
|                                   | overall Rs 1.5 L Section 80C limit. |
|                                   | OLD regime only.                    |
+-----------------------------------+-------------------------------------+
| Tax — Section 80CCD(1B)           | Additional Rs 50,000 deduction,     |
|                                   | OUTSIDE Section 80C ceiling. OLD    |
|                                   | regime only.                        |
+-----------------------------------+-------------------------------------+
| Tax — Section 80CCD(2)            | Employer contribution up to 10%     |
|                                   | (14% central govt) of salary,       |
|                                   | fully exempt. Available under BOTH  |
|                                   | old AND new regime.                 |
+-----------------------------------+-------------------------------------+
| Tax — withdrawal at exit          | 60% of corpus tax-free under        |
|                                   | Section 10(12A); 40% mandatorily    |
|                                   | annuitised — annuity income taxable |
|                                   | as per slab.                        |
+-----------------------------------+-------------------------------------+
| Partial withdrawal — Tier I       | Up to 25% of subscriber's own       |
|                                   | contribution after 3 years, max 3   |
|                                   | times in lifetime, only for         |
|                                   | specified events (higher edu,       |
|                                   | marriage of children, house         |
|                                   | purchase, critical illness, etc.).  |
+-----------------------------------+-------------------------------------+
| RTI to PIO PFRDA                  | Rs 10 by IPO. BPL = free.           |
+-----------------------------------+-------------------------------------+

• Aadhaar mobile not registered. OTP cannot be sent — use offline Aadhaar XML or visit a PoP branch.
• PAN-Aadhaar not linked. PAN is treated as inoperative under §139AA — KYC fails. Link first (₹1,000 fee + 4-5 days).
• KYC mismatch. Name/DOB on Aadhaar differs from PAN (very common with married women, name spellings). Update one to match the other.
• Bank account not pre-validated. PFRDA requires the source bank to be pre-validated for refund / withdrawal credit. Mismatch in name / IFSC / account number triggers rejection.
• PFM not active for the chosen scheme. Some PFMs may not have all schemes available — pick one that does.
• PRAN already issued. You may already have a PRAN from an old NPS-Lite or Atal Pension Yojana account — system flags duplicate. Trace the existing PRAN via NSDL helpdesk.
• Anti-money-laundering (AML) flag. Name similarity with a watchlist can trigger manual review (Ankit's case). Resolved only by manual KYC verification at the CRA / PFRDA level.
• Contribution payment failed but money debited. Reverses in 7-10 days; if not, raise a complaint with both the CRA and your bank.
• NRI account opening rejected. NRIs need to provide overseas address proof + repatriation/non-repatriation declaration; missing this triggers rejection.

• NSDL (Protean): 1800-110-708 (24×7). Email: npshelp@nsdl.co.in
• KFin: 1800-419-3024 (8 am - 8 pm). Email: nps@kfintech.com
• Best for: PRAN generation issues, login problems, statement queries, contribution credit confirmation.

• 1800-200-3201 (Mon-Fri 9:30 am - 6 pm).
• Email: complaint@pfrda.org.in
• For grievances against PFM / CRA / PoP not resolved at level 1.

• https://www.npscra.nsdl.co.in → Subscriber Corner → Grievance.
• Internal SLA: 30 days.
• Used for: contribution-not-credited, statement mismatch, PRAN issues, withdrawal delay.

• https://pgportal.gov.in → Ministry of Finance → Department of Financial Services → PFRDA.
• 30-day SLA per CPGRAMS Reform Programme 2022.
• See How to file a CPGRAMS grievance — full process.

PFRDA is a statutory authority under the PFRDA Act 2013 — clearly a public authority under §2(h) of the RTI Act 2005. PoPs and PFMs in private sector are NOT public authorities — RTI to them won't get a reply (with the exception of SBI Pension Fund, LIC Pension Fund, and PoPs that are public-sector banks — those are RTI-able for their own actions).

RTI helps here when:

• PRAN generation issue / delay — RTI to PIO PFRDA for: registration application status, KYC verification status, AML flag (if any).
• Contribution not reflected — RTI to PIO PFRDA for the transaction trail at CRA level.
• PRAN holder's complaint to PFRDA closed without action — RTI to PIO PFRDA for the noting / file disposal on that complaint.
• Withdrawal request rejected — RTI to PIO PFRDA for the rule cited and the dealing officer's noting.
• For data on PFM scheme returns / portfolio composition (some is public; granular monthly data is RTI-able).
• For information on pending PFRDA action against a PFM / PoP for service deficiency.

RTI does NOT help here when:

• Investment performance dispute — your fund returned 6% while the benchmark returned 9% — that's market risk, not regulatory failure. Use the CRA-level grievance to switch PFM (allowed once a year). RTI cannot recover lost returns.
• To compel PRAN generation — RTI gets you the reason for delay; the actual fix needs CGMS / PFRDA grievance / CPGRAMS.
• Tax interpretation — whether your contribution qualifies for §80CCD(1B) — that's an Income Tax Department matter. PFRDA confirms the contribution amount; your tax position is ITD's call.
• Annuity service provider's payout disputes — the annuity is purchased from a life insurer; complaints go to IRDAI or the Insurance Ombudsman, not PFRDA.

For format and template, see RTI in 12 simple steps — for first-time filers.

• For NPS exit annuity disputes — Insurance Ombudsman has jurisdiction.
• https://cioins.co.in for Ombudsman; https://igms.irda.gov.in for IRDAI grievance.

• Under §36 of the PFRDA Act 2013, appeals against PFRDA orders go to SAT.
• For systemic disputes (e.g., subscriber group challenging a PFRDA regulation) — not for individual account issues.

Q. Should I open NPS via NSDL or KFin?
Functionally identical. NSDL has more subscribers (older, larger). KFin's interface is slightly more modern. You can switch CRA later for free. If your employer has a tie-up with one, use that one.

Q. Auto Choice or Active Choice — which is better?
For under-40 subscribers with no investment background, Auto Choice LC75 is sensible — it's diversified, glides equity down with age, and you don't have to make annual decisions. For 40+ with investment knowledge, Active Choice gives you control. Both are revisable annually.

Q. Can I claim §80CCD(1B) under the new tax regime?
No. Under the new tax regime (default from FY 2023-24), only §80CCD(2) (employer contribution) is allowed. If you want to claim the ₹50,000 §80CCD(1B) deduction, you must opt for the old regime at the time of filing your ITR — and indicate this in your employer's investment declaration so TDS is correctly computed.

Q. What is the lock-in for Tier I?
Until age 60 (or earlier exit on superannuation / disability / death). Partial withdrawal up to 25% of own contributions allowed after 3 years, only for specified events (higher education, marriage of children, first home purchase, critical illness, COVID-like specified emergencies, etc.) — max 3 times in lifetime.

Q. Is the NPS corpus tax-free at withdrawal?
60% of the corpus is tax-free under §10(12A) when withdrawn at age 60 (or on exit). The remaining 40% must be used to buy an annuity from a PFRDA-empaneled insurer — that annuity income is taxable as per your slab in each year of receipt.

Q. I changed jobs. Does NPS continue?
Yes — NPS is portable. Your PRAN stays the same. Inform the new employer (or update yourself if no employer NPS) — contributions can resume.

Q. Can I open NPS for my parents?
Anyone aged 18-70 can open their own NPS account — but you cannot open one on behalf of a parent. They must do it themselves (online with their own Aadhaar OTP, or via PoP). For parents, the Atal Pension Yojana may be a better fit if they're below 40 and unorganised-sector.

Q. NPS vs PPF — which should I prioritise?
PPF is a fixed-rate, fully tax-free, 15-year lock-in product. NPS is market-linked, longer lock-in (till 60), with mixed tax treatment but extra ₹50,000 deduction. For most people: max out PPF (₹1.5L under §80C) AND open NPS for the additional ₹50,000 §80CCD(1B) — they complement.

Q. What if I die before retirement?
The entire corpus is paid to the nominee(s) in the proportion you specified — no annuitisation requirement applies on death. The nominee can withdraw lump sum or continue the account as a subscriber if eligible.

• RTI in 12 simple steps — for first-time filers
• All Indian government helplines — one master directory
• RTI forms + state-wise fee chart
• How to file a CPGRAMS grievance — full process
• RTI for TDS / Income-Tax refund delayed — copy-ready template

Last reviewed: 26 April 2026 by RTI Wiki editorial team. NPS rules and tax provisions are revised under PFRDA notifications and the Union Budget — verify at pfrda.org.in / enps.nsdl.com or write to admin@bighelpers.in if you spot a stale figure.