How to Open NPS Account In SBI? Documents Required, Application Process, etc.

National Pension System is a Government of India-backed Pension scheme for retired employees for both public and private sector employees.

It is a scheme launched to provide retired individuals with a pension for the investment made in the account during their active job years.

It is a market-linked scheme that enables the NPS subscribers to earn good returns for the investment made.

You can open the NPS account in various Point of Presence vendors and Post Office as well. One of the Point of Presence vendors is the State bank of India. You can open the NPS account in the State Bank of India.

In this article, we will discuss How to Open NPS Account In SBI? Documents Required, Application Process, etc.

Types of NPS Account

NPS account is available in two different types of account out of which primary i.e. Tier-I account is mandatory account and Tier-II account is optional account. The following are the different features of the Tier-I and II accounts-

Tier-I

• This account is the mandatory account meaning every subscriber of the NPS account is required to maintain this account
• The maturity of the account is the retirement age i.e. 60 years however, you can also extend the maturity up until 70 years of age
• At the time of maturity, the returns on investment of 40 percent of the corpus amount are tax-free, and the remaining 40% will be used to buy the annuity scheme, the rest 20% can be withdrawn after-tax deduction
• The minimum amount to contribute is Rs.500/- (for account opening also) with a minimum of 1 contribution each year

Tier-II

• This account is voluntary and requires a Tier-I account for subscription
• This account is flexible meaning you can liquidate this account prematurely
• The minimum amount for account opening is Rs.1000/- and thereafter at least 1 minimum mandatory contribution of Rs.250 is necessary to maintain the account

Documents Required for Opening NPS Account in SBI

The following are the documents required for opening an NPS Account in SBI-

• 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

How to Open NPS Account in SBI?

You can open an NPS account in SBI both online and offline. The following are the step-by-step methods to open an NPS Account.

Online

• Visit the official website of NPS-NSDL and  click on the National Pension System followed by clicking on the Registration button
• Now, a registration form will appear where you have to provide your Aadhaar details and select the type of account
• After entering your details click on the Generate OTP button
• Now, an OTP will be sent on your mobile number connected to your Aadhaar Card
• After verifying the OTP, you’ll be redirected to the next part of the form where you have to provide your personal details and your identity and address proof document
• After filling the form, click on the generate acknowledgment number followed by clicking on the OK button
• Now, you’ll be redirected to a partially filled application form with many sections. Make sure you check these sections and fill each section with correct details
• You also have to select your pension fund manager by default SBI fund manager will be selected however, you have an option to select others as well.
• Now, after filling the form with correct details you’ll have to upload the documents of your Aadhaar card and PAN Card or whichever documents you’ve provided details
• You are required to enter the first time contribution amount as well followed by clicking on the confirm payment button
• You’ll have to make payment for opening the NPS account
• On successful payment of the funds, A PRAN Number will be generated and you can access your NPS Account using this PRAN Number
• Now, you also have to sign the document using the eSign method or by using the courier method
• After the successful sign, your account will be fully functional and you can use the PRAN account number for making the future contributions

Offline

• Visit the State Bank of India Bank branch and ask the bank representative for PRAN application form
• After receiving the PRAN account opening form, fill the form with correct details and make sure to attach photograph, signature, mandatory details, scheme preference details, etc.
• After filling the form, submit the filled form with KYC documents to the bank representative along with the initial deposit amount
• The bank representative will review your application and further send the documents for verification
• You’ll be notified about the account status via SMS or you can use the reference number provided by the bank representative for your application form to find the status of your PRAN application form
• After the successful opening of the PRAN account, you’ll receive the PRAN Card via a post on your resident address

Selection of Pension Fund manager

You have an option to select the pension fund manager of your choice. The following are the list of pension fund manager

• 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

Selection of Investment Option

After selecting the fund manager, you also have to select the investment option. The following are the three investment options available-

Equity Bond

Equity Bond is a stock market-linked investment option that tends to be risky but the return on this investment is relatively high

Corporate Bond

This bond is less risky and the return on investment is medium

Government Bond

Government Bonds are the safest bond and you can invest in this bond if you want a guaranteed return

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