How to Link Aadhaar to NPS Account

The National Pension System (NPS) is an initiative backed by the government of India. It is a pension scheme that allows citizens to build a significant corpus for when they retire. This scheme was launched in 2004 for the benefit of government employees and was later extended to all citizens in 2009. If you want to subscribe to NPS, you need to open an NPS account (Tier 1) and deposit a minimum amount of Rs. 500 as an initial contribution.

Upon attaining superannuation age (60 years), you can withdraw a lump sum of up to 60% of the NPS corpus (you can withdraw up to 50% of the corpus after completing 25 years of service). The remaining funds are used to buy an annuity at the time of retirement to ensure you get a regular income.

NPS is managed and regulated by the Pension Fund Regulatory and Development Authority (PFRDA), which has now recommended all subscribers link their NPS account to their Aadhaar card.

If you are looking for a safe investment option, you can consider fixed deposit. They offer guaranteed returns and a fixed interest rate throughout your investment tenure. NPS offers the potential for higher returns due to its investment in market-linked assets. In contrast, fixed deposits offer a guaranteed interest rate that is locked in for the duration of your investment. This provides stability and predictability, especially important for risk-averse investors.

Here are the steps you need to follow as an existing subscriber for the NPS-Aadhaar linking online.

Step 1: You first need to log in to your NPS account.

Step 2: Go to the “Update Details” section and select the option of “Update Aadhaar/Address Details”.

Step 3: You will be asked to enter your Aadhaar card number two times. Then, you can proceed to click “Generate OTP.”

Step 4: Click the “Proceed” button to grant permission to NSDL e-Gov, which will initiate the linking process.

Step 5: An OTP will be generated, and you will receive it on your registered mobile number linked to your Aadhaar card.

Step 6: Enter the OTP received on your mobile in the box provided and click the “Continue” button.

Step 7: Your NPS-Aadhaar link will be completed upon successful authentication.

If you are a new subscriber, you can open an NPS account online and link it with your Aadhaar card when you open the account. Here are the steps you need to follow to link your NPS account to your Aadhaar card.

Step 1: First, log on to the NSDL e-NPS portal.

Step 2: Click the “Registration” option.

Step 3: Fill in the required details, input your Aadhaar number in the designated field, and click the "Generate OTP" button.

Step 4: Agree to the disclaimer and click the "Proceed" button.

Step 5: You will receive an OTP on the mobile number linked with your Aadhaar. Enter the OTP in the provided field and click "Continue."

Step 6: Fill out the NPS registration form, make the necessary payment, and obtain your acknowledgement number.

Step 7: Submit your registration details to receive your PRAN.

Step 8: Electronically sign the registration form to finalise the NPS subscription process.

Benefits of linking the NPS account with Aadhaar

Linking your NPS with Aadhaar online provides you with several benefits, some of which include:

• Starting an online NPS account with the help of Aadhaar card authentication has become very convenient.
• With Aadhaar seeding, you can easily fulfil the required KYC norms.
• The government has issued guidelines to encourage NPS subscribers to link their respective accounts with Aadhaar to make tracking financial transactions and providing tax exemptions easier.
• The process of e-KYC with your Aadhaar number eliminates the need for excessive paperwork, as the Aadhaar OTP allows for immediate, real-time verification. This streamlined process ensures a more efficient and hassle-free experience for subscribers.

The following pointers must be kept in mind for your NPS-Aadhaar linking procedure.

• Your name mentioned in PRAN or Permanent Retirement Account Number should match the name mentioned on your Aadhaar card.
• Every NPS subscriber has to mandatorily follow the Aadhaar-NPS linking process, even though they submitted all their Aadhaar details when subscribing to NPS.
• The linking of your NPS account with Aadhaar will only occur through the Aadhaar OTP authentication.
• You should link your mobile number to your Aadhaar card to avail of these facilities.
• The Aadhaar seeding of government employees will be completed only when the Nodal officer approves the request.

If you are looking for safe investment option, then you can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 8.85% p.a.

Also read: NPS interest rates for 2024

You can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 8.85% p.a.

Conclusion

NPS-Aadhaar linking is a crucial step in streamlining your pension management and ensuring compliance with government regulations. This process simplifies account verification, reduces paperwork, and enhances the security of your financial transactions.

Whether you are an existing subscriber or new to the National Pension System, following the outlined steps will help you seamlessly link your Aadhaar with your NPS account, thereby making your retirement planning more efficient and secure.

Remember to keep your details up-to-date and follow the necessary steps to authenticate your information with Aadhaar OTP, ensuring a smooth and hassle-free linking process.