Add a Nominee to Your NPS Account: Nomination facility available for NPS accounts
The National Pension System (NPS) is a scheme offered by the government of India to help subscribers save up for their retirement. With an NPS account, you can invest in various asset classes like equity, corporate debt instruments, government bonds and Alternative Investment Funds (AIFs).
When you open your NPS account, you also need to ensure that you add your legal heirs as your nominees. Let us take a closer look at the nomination facility available for NPS accounts, and get to know how to complete this essential process.
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Nomination Facility in NPS
A nominee in the context of your NPS account is a person who has been assigned to receive the benefits from the account in case of your demise. So, for instance, if you add your spouse as the nominee to your NPS account, they will easily be able to access the funds accumulated in your account in your absence. This makes it easier for your loved ones to meet their financial needs even if you are not around.
As per the rules of the Pension Fund Regulatory and Development Authority (PFRDA), you can add up to 3 nominees for your NPS account. It is advisable to ensure that your nominees are all close members of your family, so the funds accumulated in your NPS account are accessible to the right people.
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You can add up to 3 nominees to your NPS account at the time of opening the account itself. Additionally, you can also add or update the nominee details in your account at any time. So, as your family expands, you can continue to update your nominee details. This will ensure that your spouse, children and dependent parents, if any, can all be financially secure.
A Step-by-Step Guide to Add a Nominee to Your NPS Account
It is quite easy to add a nominee to your NPS account. Here is a closer look at the steps you need to take to complete the nomination process in a hassle-free manner.
Step 1: Visit the CRA NSDL website and log into your account using your user ID and password.
Step 2: Once you have logged in, click on the ‘Demographic Changes’ option in the main menu and choose the ‘Update Personal Details’ option.
Step 3: Then, select the ‘Add/Update Nominee Details’ option on the Subscriber Modification page to update the details of your nominee.
Step 4: Choose the type of account (Tier 1 or Tier 2) for which you wish to add or update the nominee details.
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Step 5: Submit the required information about the nomination, such as the name of the nominee, their date of birth, their relationship to you, their address, PIN code and other details.
Step 6: Once you have saved the above information, you can proceed to add more than one nominee in a similar manner, if required.
Step 7: After filling in all the necessary details, you must enter the OTP sent to your registered mobile number and e-sign the information to validate the nomination made.
Step 8: You need to also submit your Aadhaar details or your Aadhaar virtual ID.
Step 9: Verify all the details you have provided to complete the process of adding a nominee to your NPS account. Once the details have been authenticated, they will be updated in your account as well as in the NPS records.
How to Open an NPS Account?
Before you add a nominee, you need to be clear about how to open an NPS account in the first place. Check out the s
Step 1: Visit https://enps.nsdl.com/eNPS/NationalPensionSystem.html to open your NPS account online through eNPS.
Step 2: Select the ‘National Pension System’ option and click on the ‘Registration’ option to proceed.
Step 3: Enter the mandatory details required online.
Step 4: Upload a scanned copy of your PAN card and a cancelled cheque.
Step 5: Then, make the payment for the initial contribution to your NPS account via internet banking.
Step 6: Once your Permanent Retirement Account Number (PRAN) is allotted, eSign your registration form using your Aadhaar number and the OTP sent to your registered mobile number.
Conclusion
By adding a nominee to your NPS account, you can ensure that in your absence, your legal heirs can easily access the investment corpus. And now that you know how to open an NPS account and how to add a nominee, ensure that you complete the process at the earliest. Once that is taken care of, you must also remember to update the nominee details in your NPS account as and when needed, so your account is up-to-date. This way, you can rest assured that your loved ones are financially secure, even if something untoward happens to you.
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