National Pension Scheme or NPS is a scheme launched by the Government for people who are interested in savings for their retirement.
This scheme aims at young individuals and provides them with a savings account that they can use after their retirement.
The interest rate offered by the Government is very good and this scheme also comes with a multitude of benefits attached to it which makes it a very attractive option for investment.
In this article, we will discuss How to Open NPS Account in Canara Bank? Documents Required, Opening Process, etc.
Table of Contents
What is the NPS Scheme?
NPS Scheme stands for National Pension System which is an initiative launched by the Government of India to provide a retirement pension scheme to working individuals.
It is a long-term scheme with builds up the retirement corpus for an individual while he is working and once he retires he starts earning his savings back as a pension amount.
The investment that you make under the NPS Scheme is a market-linked return that helps you to enjoy the benefit of the booming economy of India.
Indian stock market registered the highest growth rate in recent years than any other stock market in the world making it very favorable for employees to invest in this scheme.
Types of NPS Accounts
The following are the types of NPS Accounts you can choose from-
| Criteria | Tier-I | Tier-II |
| Minimum investment | Rs.500/- | Rs.1000/- |
| Mandatory contribution (per annum) | One mandatory contribution per annum | Voluntary contribution |
| The maximum amount to be contributed | Rs.1.5 Lakhs | No maximum cap |
| Investment Type | Market Linked scheme | Market Linked scheme |
Features of NPS Account
The following are the features of the NPS Account that can make you interested in investing in the account-
- The age criteria for opening the NPS Account is 18 years to 60 years of age
- National Pension Scheme provides tax benefits to the user up to 1.5 lakhs according to the Income-tax acts
- After maturity of the NPS account, the account holder will get a guaranteed pension throughout the lifetime
- The minimum amount that you can invest in NPS is Rs.500/- in Type-I and Type-II Account, Rs.1000/- per annum
- Indian Citizens both residents and NRIs are allowed to open the NPS Account
How to Open NPS Account in Canara Bank?
The following are the step by step instructions on how to open an NPS account in Canara Bank-
- Visit the official website of the NPS portal and click on the registration button
- After clicking on the registration button, a form will appear where you’ll have to choose appropriate options followed by entering Aadhaar number followed by entering the OTP
- After successful validation of the OTP, you’ll be redirected to a partially filled form which you’ll have to complete with details like mother’s name, occupation details, Bank details, address, etc.
- Now, It is also important for you to fill in the nominee details by entering their name, address, relationship, etc. followed by clicking on the Next button
- Before clicking on the Next button, you’ll have to ensure that you’ve selected the correct pension fund manager and the investment option wisely. You can leave them as default if you are confused or do not know what it is.
- In the next button, you’ll have to upload the documents mentioned below to the website
- After completing the uploading, you’ll have to make the initial contribution to the account
- After successful payment, a PRAN number will be generated using which you can access your account easily
Documents Required for Opening Account in Canara Bank
The following are the documents required for opening an account in Canara Bank-
- Identity Proof- Aadhaar Card, Class 10 and 12 certificates, PAN Card, Passport, etc.
- Residence Proof-Electricity bill, Utility bills, Bank Passbook first page, etc.
- Application Form for opening NPS Account
- PAN Card (Mandatory) scanned
- Aadhaar Card (Mandatory)
- Canceled Cheque
- Scanned passport size image
- Scanned Signature
Pension Fund Manager
The following are the list of pension fund managers from which you can choose-
- SBI Pension Funds
- LIC Pension Fund
- UTI Retirement Solutions
- HDFC Pension Fund
- ICICI Prudential Pension Fund
- Kotak Pension Fund
- Reliance Capital Pension Fund
- Birla Sun Life Pension Management Ltd.
- Indian Post Office
FAQ
Yes, you can open this account easily however, the account will instantly be deactivated from the time you’ve left the Indian Citizenship.
If you’ve become a foreign citizen, then from the time you’ve become a foreign citizen your account will get deactivated and the funds in the account up until that point will be available for withdrawal after deduction.
Yes, premature withdrawal is allowed in NPS Scheme however the account must be active for at least 10 years and with at least 80% of the funds to be invested in an annuity plan.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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