Tier II account in National Pension System (NPS) is a voluntary investment account which aims to provide a window of liquidity to meet financial contingencies and build savings through investments. A subscriber to NPS Tier II Account enjoys unlimited online withdrawals and can get the sum credited in bank account whenever needed. For a non-government employee, contribution to Tier II Account does not qualify for tax deduction. But a government employee can avail deduction under Section 80C for contribution to Tier II Account as well provided there is a lock-in period of three years. Only those subscribers who have a Tier I NPS Account can open a Tier II Account.
Here is the step by step guide to open an NPS Tier II Account online:
- Visit eNPS website (https://enps.nsdl.com) and click on National Pension System.
- Next, you have to click on 'Tier II Activation'.
- Next, you need to submit three mandatory details to get OTP. The three details are - Permanent Retirement Account Number (PRAN), Date of Birth and Permanent Account Number (PAN)
- Click on 'Verify PRAN' to receive one time password on your registered mobile number.
- Write the OTP received on your mobile in the given space and continue.
- Fill up your bank details and click on 'Validate Aadhaar'.
- You will get your acknowledgement number. Click on OK.
- Next, you will need to choose a pension fund manager (PFM) and investment option -Auto or Active choice.
- Then click on 'Save and proceed'.
- Enter your nominee details and click on 'Save and proceed'.
- Next you need to upload two documents- your scanned PAN card and a cancelled cheque.
- Once the documents are attached, click on 'Upload'.
- After the documents are successfully uploaded, make payment towards the Tier II NPS Account. You can open a Tier 2 account with a minimum investment of ₹1,000.
- Next, you will get your receipt for contribution to NPS Tier II Acount.
- Now you need to esign the application using your Aadhaar number. Once you provide your Aadhaar number, you will receive an OTP on your registered mobile number. Submit the OTP.
- Once you have esigned your application successfully, you can download your application, put your signature on the downloaded form and send it to the head office of NSDL in Mumbai through registered post.
