NPS scheme update: Now, opt for e-PRAN card to save costs on account opening; here's how

Subscribers of the National Pension System (NPS) can now opt for e-PRAN (Permanent Retirement Account Number) cards to cut account opening costs to as low as Rs 4. Subscribers opting for e-PRAN will also get the account opening kit via email. With this, NPS offers both physical and e-PRAN cards and both are treated as equivalent for all purposes by Pension fund regulator PFRDA.

PFRDA said in a circular said "NPS subscribes have hitherto been provided with a physical PRAN (Permanent Retirement Account Number) card along with the welcome kit. In order to give them a choice to optimise the cost i.e. the account opening charges payable to Central Record keeping Agencies (CRA), it has now been decided that a subscriber may, either opt for physical PRAN card or e-PRAN (PRAN received through email) along with the option to receive welcome kit as well, either physically or through email".

You can choose two agencies namely NCRA (NSDL-CRA) and KCRA (Karvy-CRA) to open a Permanent Retirement Account (PRA) under NPS.

Physical PRAN card (PRA) opening fees for NCRA is Rs 40 and KCRA is Rs 39.36.

e-PRAN card: Under KCRA, PRA opening charges drop to just RS 4 if you opt for the e-PRAN card and get welcome kit also sent by email. NCRA charges Rs 18 for e-PRAN card services.

Both physical and e-PRAN will be considered at par whenever presented for identification, servicing, exit or any other NPS related processing, The Pension Fund Regulatory and Development Authority (PFRDA) said.

By requesting and paying extra you can get a physical PRAN card at a later stage, if you had chose e-PRAN while opening a new NPS account.

PFRDA has recently started onboarding new NPS subscribers in a paperless manner through e-signature and one-time password (OTP) based system.

For opening of NPS accounts through non-internet banking digital mode through POPs (banks as well as non-bank POPs), OTP received on their registered mobile number and e-mail can be used for paperless NPS account opening.

PFRDA administers more than 3.60 crore subscribers under the National Pension System with an aggregate Assets Under Management (AUM) of more than Rs 4.55 lakh crore.