Posted by: Girija Gadre on Jan 15, 2018, 06.30 AM IST
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.
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 https://enps.nsdl.com/eNPS/submitTier2Request.html. PAN, PRAN, date of birth must be authenticated to activate account.
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.
The subscriber needs to select the NPS scheme, option and allocation for Tier II. Maximum contribution to equity can be up to 50%.
No additional POP charges. However, the CRA may charge Rs 20 for account activation and can charge separately for each transaction.
Points to note
It is possible to open both Tier I and Tier II accounts at the same time by filling in a composite application form.
One can withdraw any amount from the Tier II account at any time without an exit load.