How to open a tier II NPS account

There are two types of accounts under the National Pension System (NPS). Tier I is the basic retirement account that enjoys tax benefits applicable to NPS. There is another voluntary account the subscriber can maintain. The Tier II account is more like an investment account. It can be opened as explained below.

Eligibility
One must have a Tier I account to open a Tier II account. The Tier I account should be an active account and the Tier II account must be opened under the same PRAN as the Tier I account.

Online method
Select PRAN-issuing CRA. Then click on link: https://enps.karvy. com/TierTwoActivation/GetTierTwoActivationDetails/ or htt ps://enps.nsdl.com/eNPS/submitTier2Request.html . PAN, PRAN, date of birth must be authenticated to activate account.

Offline method
Approach the POP-SP for the Tier II form or download the form Annexure I to CSRF from www.npscra. nsdl.co.in/non-goverment-form. php . PAN, PRAN must be given. Bank details and nomination must be provided. The duly filled form must be submitted to the POP-SP for activation.

Scheme details
The subscriber needs to select the NPS scheme, option and allocation for Tier II. Maximum contribution to equity can be up to 50%.

Charges
No additional POP charges. However, the CRA may charge Rs 20 for account activation and can charge separately for each transaction.

Points to note
1. It is possible to open both Tier I and Tier II accounts at the same time by filling in a composite application form.
2. One can withdraw any amount from the Tier II account at any time without an exit load.

The content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.